A shelf company is a company already founded, but unused. There are no assets nor liabilities in the company. You will pay a premium because of the running costs of previous years and you need to change the name and the directors. On the other side you can have ready company within hours and often it is better to have a company which was registered a few years ago.
All shelf companies are considered dormant since the day of their incorporation. Their main purpose of being founded is to be sold. Most have been registered in the name of a nominee shareholder. Depending on the client’s requirements, such companies can be transferred to the owner with the authorised Power of Attorney and Declaration of Trust (if shares are still issued in the name of a nominee shareholder) or directly transferred to the shareholder.
The main advantage of having a shelf company, or a ready-made company as they are also known, is saving time. You can have your company ready in a few hours and all documentation confirming the new company appointments can be provided immediately. In some cases, you can even purchase one such company with appointed nominee director and a nominee shareholder. Afterwards, the client selects their own company director, secretary and shareholder.