Company which is created under the New Companies Act 2013 and left free without any corporate tasks are known by shelf-company or can also be called by aged company. These companies generally established with the aim of selling in future to any group that saves their time while starting a company without following any of the legal formalities. As shelf company has already been registered under the New Companies Act 2013 after accompanied all types of company registration legal rules, paper documentaries and formalities. It is like come and start the work without following the legal procedure of creating a new company.
- It saves time while complying legal formalities as it already accompanied.
- Many times several types of opportunities have been opened by the government or concern authority only be reaped by companies with certain length of time can apply for the same.
- It also used to attract the potential market and face the corporate competition efficiently while showing the longevity.
- Shelf companies can easily access to corporate credit.
Shelf Company - Incorporation and Administration ServicesA shelf company is a company formed for the purpose of circumventing or to enable an entrepreneur occult does not appear directly in the activity.
- In the first case, the shelf company is a company that does not carry a specific productive activity and consists essentially made out to his name assets that do not produce profits in order not to be included in personal assets and evade, thus, fiscal controls. Having no profits now "ghost" does not pay taxes, the corporate assets are instead used by the people who own the shares of the capital. In other cases, especially in the international arena, the shelf company is established for illicit purposes such as, for example, divert funds abroad or food tax fraud through the billing of activities not carried out.
- In the second case, in the presence of an entrepreneur occult, the shelf company is set up solely with the same aim where the entrepreneur does not want to appear directly in a particular company.