What is a Shelf Company?
There’s a countless number of products sitting on store shelves, waiting to be bought. As suggested by the name, ‘shelf companies’ are inactive businesses which sit dormant for a period of time before they are purchased. They can be considered new because they are unused. But they are also perceived as old since they have been around for a while.
What makes them great?
The good thing about shelf companies’ inactivity is that you needn’t be concerned about the history of the company - there’s no need for you to stressfully comb through complex past dealings and activities. Buying a shelf company can also save you the administrative fuss and hassle usually involved with creating a new business.
The main advantages related to purchasing a shelf company stem from its age, and can be summarised as follows:
1. First impressions.
New companies face the challenge of having zero reputation. Getting a name for yourself can be tough when you’re new to the market. A shelf company’s long-standing, established business title can boost advertising and exposure, making it easier to build your brand.
Shelf companies can increase your chances of eligibility or approval when applying for things like loans, visas, licences or permits.
2. Credibility.
New companies experience a lot of prejudice. You’ll typically discover that banks, creditors, government agencies and buyers prefer to do business with older companies. Despite being inactive, the mere fact a shelf company has been around for a while can give an automatic tick of confidence.
Some businesses or agencies require a company to have existed for a certain time before they even consider dealing with you.
Want to buy one?
Before making any purchase, it is vital to have all the right information. Although shelf companies are typically ‘clean’, there is still the possibility of a bad business history or other details you should know about. If you want to learn more about shelf companies, or how to buy one with peace of mind, Pathway Lawyers & Migration Agents can assist.
