The term “Shelf” refers to the fact that incorporation documents are literally purchased of a bookshelf filled with pre-registered companies that are instantly transferable to the buyer. A shelf corporation, shelf company, or aged corporation is a company or corporation that has had no activity. It was created and left with no activity - metaphorically put on the "shelf" to "age". The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.
Advantages of A Shelf Company
As its name suggests, a shelf company is an entity that has already been incorporated and its available for selling now. This entity is popular for people who do not have preference in the company name and can't wait too long to get it incorporated. Major advantages are as follows:
Short processing;
An almost instant option;
Quick bank account opening;
Various business nature and longevity.
Some Reasons You May Require An Aged Company
The age of your company can sometimes affect the business you wish to conduct. The number of years a company has been in existence may affect how much confidence potential business associates such as buyers or creditors have in a company.
(1) If you want to obtain bank loans, corporate credit cards, leases and other credit facilities, an aged company will be in better standing than a new incorporation;
(2) Having a company image and business history may be important to you - the longer a company has been in existence, the more credibility it can be said to have;
(3) Distributors and manufacturers often require a company to have been in business for a certain period of time before doing business;
(4) Similarly, other companies will do business with an older company before a brand new one;
(5) Showing longevity and enhancing your image with customers and lenders;
(6) In many countries, government contracts may only be awarded to companies that have been trading for a number of years - an aged company may be beneficial to secure these;
(7) Obtaining a Business Visa or Work Permits for company directors is easier with an established company.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
Previous：China Company Incorporation (FTZ )
Next：A Comparison between Shanghai and Guanggong Free Trade Zones