Shelf Company
A shelf company, or readymade company, is a company or corporation that
has had no activity. It was created
and left with no activity - metaphorically put on the "shelf" to
"age". In other words, shelf company is a readymade 'paper company'
that has fulfilled all requirements for legal registration. It has no
assets or liabilities and has never conducted business. It is registered with
the sole purpose of being sold.
The company can be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one
The company can be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one
There are many advantages of buying readymade
shelf company instead of starting with registration of new company from
the scratch.
1. Start your business and print
your name card right away
Every minutes count in today
business world, You can start your business by informing all your customers
& suppliers about your new company and print your business/name card
right away.
2.
Sign contract or agreement immediately
With the readymade shelf company in
place, you can enter or sign any contract or agreement or tender any project
with any company or government agency immediate
3.
Skip the whole company registration process
A whole new company registration
process will normally take about15-20 working days. Unless you are fine with
the waiting period, or you might be losing out the business opportunities along
the way. Buy readymade shelf company and it will be yours within 24 hours.
4.
All statutory documents are ready
All statutory documents such as
Common Seal, Shares Certificates, Minutes Book and Register Book are made ready
together with all shelf companies.
Despite of the advantages, there are
disadvantages of buying shelf companies:
1. A Shelf
company is already registered with its business name,
there’s a good chance that you may not like the name of the Shelf Company and
will have to change it.
2. A Shelf Company is already registered with its existing members, which means that you have to add yourself as a member before you can register for VAT, open a business bank account or qualify for a business loan until you’re registered as the new member of the Shelf Company.
3. A Shelf Company is already appointed an Accounting Officer as required by law and there’s a good chance that you may want to have your own accountant and so will have to change that too.
4. Changing the Shelf Company name is time consuming, a waste of money and is exactly what the start-up business cannot afford. It takes about 3-6 weeks to change the name of the shelf company.
2. A Shelf Company is already registered with its existing members, which means that you have to add yourself as a member before you can register for VAT, open a business bank account or qualify for a business loan until you’re registered as the new member of the Shelf Company.
3. A Shelf Company is already appointed an Accounting Officer as required by law and there’s a good chance that you may want to have your own accountant and so will have to change that too.
4. Changing the Shelf Company name is time consuming, a waste of money and is exactly what the start-up business cannot afford. It takes about 3-6 weeks to change the name of the shelf company.
