Our first blog naturally is going to about setting up a business. As this is a blog about business, we would like to begin with the subject of shefl companies.
We will aslo mention setting up a fresh company covering this subject in brief. We only need to cover this particular area of business set-up breifly because in most countires it is long arduous process. However, we do cover the fact that some countries do make opening a fresh company easy and so there would be no need to open a shelf company unless there are specfic circumstances, which we will also cover in this article.
Setting up a company in today’s modern business environment
Today setting up a company anywhere is quite difficult. There is all the red tape that you need to get through, in some cases licenses and permits, and not to mention have a health and safety approved property to prove your business location.
Nowadays the easy option to buy a shelf company. Shelf companies are businesses that have in general not filed any accounting records and thus have no activity. The ease of buying a shelf company means that you do not have to go through the whole procedure involved with opening a brand-new company.
Opening a company abroad is much easier with a shelf company
This is especially true if you are looking to open a business overseas. It is obviously much easier if you want to open a business in the country you hold a passport and residence in. However, if you want to open a business in a country that you are not a citizen, then the procedure to opening a new company can become a daunting and stretched out process.
One good reason for buying shelf company when you plan to conduct your business overseas is to save a lot of time. In most cases the additional cost involved with the purchase of the shelf company more than compensates the costs involved with going through the hefty paper work trail that comes with starting a company from scratch.
Even if you are not opening a business abroad, a shelf company is still more convenient
- You save time because you are buying an already formed company
- You can big on contracts with an aged shelf company (sometimes there are restrictions on contract bids such as the company must be X amount of years old)
- Show that your business is aged helping to attract more customer and investor opportunity
- Credit can also be easier to obtain if you are buying an aged company
Some countries make it very easy to open a new company
Shelf companies are not always the primary route. That is, if you live in a country where they have a fast track system that will allow you to open a new company with ease. However, in many cases this is only true if the person opening the company owners are either:
- a citizen in that country with a passport
- a business owner of a successful company in the country already
In such cases, it can take as little as a few hours to set up a new business with the correct paperwork. The process is also made very easy. Clear instructions and printable forms are made available online. Identification needs to be shown with the forms and the company is opened on the day or week of application.
In short, if you are looking to conduct business overseas or you are not in country that has a qualified procedure that easily allows you to open a new business, then the quickest and least costly way to set up your business is via a shelf company.