What is a shelf company?

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.

Read more: 

• Shelf company for sale