Buy a UK Shelf Company

What are Shelf Companies?

Shelf companies are the companies that are registered but do not perform any activity for several months or years. They are the companies which are established with no trading activity has been done in the past. It is also known as “off the shelf companies”, “Ready-made companies”, “aged shelf companies”, “old companies, and “vintage companies”. These companies are incorporated and then kept aside to be sold at a later date. A shelf company ready for sale is kept up to date with required paper filing, timely fees payment and properly maintained till it is sold to another individual.

All the paperwork including documents for a shelf company is filed with HMRC. Any individual can buy Shelf Company and reserve the right to –

1. Change the name of the company
2. Change the shareholders
3. Change the directors

after becoming the legal owner of the company

Reasons for buying a shelf company

There are three important reasons of buying a shelf company and they are as follows –

1. Simplicity – It is quick and easy to buy a previously registered company along with a company number.
2. Longevity – The shelf company is also bought to show that the registered company is running from a certain length of time. However, some jurisdictions only require companies with experience for signing certain contracts. It also influences the investor to make investment as well as increase the confidence of the consumer to buy a product or a service.
3. Time saving – Buying a shelf company can help you in saving new company registration & approval time. You dont have to wait for the application to be processed and approval to be made. It is very useful when you are under tight deadline for incorporation.

Advantages of Shelf Company

Shelf companies does not enjoy many advantages in comparison to a new limited company formation but they are preferred sometimes because of the following –

1. It saves your time of company registration and approval as it is created by company formation agents.
2. It also avoids processing delays at company’s house.
3. It is usually preferred to show the longevity of the business.
4. It is only of interest if there is a need for a longer trading history.