What is a Shelf Company?

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A shelf company is a company that is already registered but has never traded or conducted business and holds no assets or liabilities. Essentially, the company is registered to sit on a ‘shelf’, waiting for a someone to buy it. They’re ideal if you require a company registration number extremely quickly or if you need to operate asan older company.

Benefits of a Shelf Company

Some small business owners may look at shelf corporations as an opportunity to get ahead. It’s smart for a small business owner that is just starting off to look for ways to help their company, especially when they hit roadblocks in the early stages.

A few of the benefits that small business owners may gain from having a shelf company are:

Simplicity: Saves time taking the steps to create a new corporation.
Longevity: To show corporate longevity in order to attract consumers or investors.
Funding: To gain access to corporate credit or funding. In the early stages of a business, lenders are more hesitant to lend money to a business that is not as established yet, due to the high risk involved.

Are Shelf Companies Legal?

Yes, absolutely. A registered Pty Company and a Shelf Company are exactly the same. Both are Pty’s legally registered at the CIPC with Company Names and documentation and a Company Registration Number.

The term ‘Shelf Company’ simply refers to a Pty Company that’s been registered for the purpose of reselling it.