Shelf Company: The easiest way to incorporate a business in the USA
A shelf corporation is a firm that is registered already; however, it has never conducted business or traded and holds no liabilities and assets. The company is established to stay on a shelf until someone buys it. Purchasing a shelf corporation used to be the most acceptable way to rapidly get a corporation without experiencing the lengthy process of registering a new company. These corporations are free from liens, judgments, defects, and any other liabilities. In today's world of the fastest developing market, it is hard to wait for the company's registration to begin a new business while buying an aged company accomplishes all your legal needs beforehand. A shelf or readymade company already possess company seals, incorporation certificate, and other papers needed by law. Today investors prefer to buy readymade companies instead of going through the complex process of starting a new company, and the main reason for this is to save precious time. If you plan to purchase a shelf corporation, you should sign some papers, including a share transfer agreement, and you are done.
The History of Aged Companies
Formerly, registering a corporation took a substantial amount of time. Several people couldn't wait for their firm registration and needed a company sooner. Hence, specialist company formation services, accountants, and solicitors would keep a reserve of companies available on the shelf, prepared to be sold.
Buying a Shelf Company is easier to start a business in the USA
When an investor buys a shelf company, shelf company providers may require making necessary changes to the corporation, which can comprise -
- Changing the company's registered address to a new authorized address selected by the buyer.
- Transferring the shares of the shelf corporation to the nominated buyer.
- Changing the company's existing directors to the newly appointed directors by the buyer (the process involves the resignation of the current directors).
- Changing the company's name to a name suggested by the buyer.
Shelf companies were usually registered with a standard charter. Hence, after their purchase, the buyer also requires to make needed changes to the charter. For several people, the main advantage of getting a shelf corporation was saving money and time. Buying a shelf corp, instead of starting a new corporation, permitted many people to:
- Begin their business right away
- Get quick access to corporate debt financing and third-party equity (for instance, from banks and investors).
- Be accessible to enter into agreements or bid faster.
Others acquired aged corporations with the idea that an aged company is smarter to investors, business partners, banks, customers, or potential clients because of the facade of having a business history.
Key Takeaways
Shelf corporations are already registered firms that have never done business and are accessible for purchase. Shelf companies will also assist you in opening business bank accounts. In most nations like the USA, you should undergo plenty of formalities and procedures before opening a corporate account. But, shelf corporations have comfortable bank formalities. That's why you can obtain shelf corporations to open business bank accounts in a short period.