Sunday, 10 March 2013

An overview of Shelf Companies or an aged corporation

To begin with an overview of shelf companies or an aged corporation, a Shelf Company or an aged corporation is a company or a corporation having no present activity. Such companies are pre-fabricated; unused corporations probably put on “shelf” to “age” and have been set-up with the sole purpose of meeting client’s specific needs. Such companies have never conducted any business operations having no assets and liabilities and have been set-up exclusively for being sold. It can be sold to a person or a group of persons wishing to start a company but reluctant to undergo the procedures of creating a new one.
Going ahead with a snippet or an overview of shelf companies or an aged corporation, since registration of company in India takes about two weeks time, Shelf Companies are a very swift way of getting business doing and running with least of business set-up formalities. New Directors can be appointed within a day and a bank account can be immediately opened to start trading without delay.
Frequent reasons for buying a shelf company are:
  • Save in time for the steps involved in the creation of a new company
  • Showing company’s prolonged existence in order to attract consumers or investors
  • Gaining effortless availability to corporate credit
  • Gain opportunity to bid on contracts instantaneously

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