What is a shelf company?

Updated time: Mar 8, 2016 , 17:34 (UTC+08:00)

Off the 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 third party, who then commences trading activity under the company name. The benefits of purchasing an off the shelf company include:

  • Reduction in the time it would take to create a new corporation.
  • The allowance of contract bidding (some jurisdictions require a fixed business age to allow this functionality).
  • The appearance of corporate longevity.

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

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