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Shelf companies are corporate entities that have been established by a provider who holds the company until a purchaser is found. Post transaction, the ownership of the company transfers from the provider to the purchaser, who then commences trading activity under the company name. The benefits of purchasing a shelf company include:

  • reduction in the time it would take to create a new corporation;
  • enables contract bidding (some jurisdictions require a fixed business age to allow this function); and
  • the appearance of corporate longevity.

Note: shelf companies are normally more expensive than newly incorporated companies because of their age.

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