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.