What is a shelf company?

[AndrewT]

I've heard this term being used in connection with offshore companies but I don't know what it means. Is it some type of offshore company or something else?

 

[JohnLocke]

It's one term of many, it's the same like a dormant company, ready-made company or shelf company! Actually it does just mean that you buy a company which is already registered and incorporated either onshore or offshore. Safes a lot of time.

 

[taruniis]

That is a good explanation right there. With that, shelf companies are a lot more expensive than incoming ones. A buyer will have to pay for all the fees that were already paid for the processing. It will only be cheaper if the company does not produce good or saleable materials.

 

[AndrewT]

It looks like a better option to start with a shelf company but at the same time it is good to check if the so-called shelf-company doesn't have any issues with the law before buying it.