Guide to buy a shelf corporation



A shelf corporation is a legal unit that has been built and put on the shelf for future commercial activities. These types of companies are very useful to people who want to build their existence in a short amount of time. There are some of the important steps to be taken to buy a shelf corporation.

Select the legal structure

The first rule of thumb is to choose a shelf company that will fulfill all your business requirements. Some prefer to choose a private limited company because the shareholders are just responsible to pay their invested capital. The formation process of the general company is simple in some jurisdiction and the plus point is that the shelf company has no past business record. However, some nations provide both a luxury life and an enticing business environment, which makes them equally striking to lenders.

Verification is a key

There are some international business centers that possess shelf companies because the location grabs the attention of many foreign lenders. But, if you are going to buy a shelf corporation in any business location, you will have to conduct a background check thoroughly. The company should submit some papers for registration as per the local company registration regulations. This implies that you should perform a verification process to cross-check the company name, type of company, and incorporation date. The verification process is necessary despite the location or place where the foreign lenders want to purchase a shelf company.

Collect the important documents related to company ownership

The last step is to finish the ownership documents to buy a shelf corporation. The new owner of the company needs to check and sign the essential documents related to ownership transfer. Then the new owners can go further to change the name of the company. It’s common to purchase a shelf corporation in many countries, particularly in offshore economic centers. The common reason why the investors use shelf company is the fact that they can begin their business right away, they can get credibility through the company’s age and the quick ownership transfer.

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