What are Shelf Corporations?

[guest]

This is a company that does not operate on the daily normal company operational procedures but created and left on the ledge for other people who want to start a company from up the ladder. It is created and kept inactive giving it more ageing period.


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[keymike]

This is a company that does not operate on the daily normal company operational procedures but created and left on the ledge for other people who want to start a company from up the ladder. It is created and kept inactive giving it more ageing period.
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Do shelf corporations increase credit worthiness when purchasing it?

 

[JohnLocke]

Usually not, the lenders will ask for audit accounts from when the company was registered, if they don't show any activity it is worth nothing. You will need to purchase a company which already had some sort of activity, but the risk will increase on liabilities.

 

[keymike]

Thanks for your answer, still doing research myself, are shelf and shell companies the same?

 

[JohnLocke]

Yes they are the same.. different words for the same terms.

 

[keymike]

They do have pros and cons, but are still playing a major role in some major economies today. I guess you have to do your homework before you buy one. Researched and came across a good site , wanna share.