When it is about starting of your own business, here, you have a key choice to ask yourself and also your business partners. You need to check if you wish to start the business from beginning or scratch, or you want to buy a shelf company?

No doubt, there are different benefits and even negatives of both the situations. But, from the professional perspective, the benefits of acquiring the shelf company make the option to be well worth pursuing. This is quite important to have various facts prior to making a decision, as it is seen in reports that four business out of ten die usually within five years of registration, making it highly important to set up the business for success at initial level.

A Shelf corporation makes it easy to acquire Credit cards and Bank Loans

The shelf companies usually give an impression of durability and longevity. For instance, if they are registered some years back, they have the history of being well established a few years before even when you bought the company. However, the aged company will definitely be better standing as compared to the newly registered company and hence it could be viewed as much trustworthy option of investment to the banks.

Vendors and Suppliers prefer to trade with Aged companies

Yes, the business, vendors and suppliers prefer to trade with the companies that are aged or that have a good business history. You might be wondering why? The answer is that we always prefer to work with companies that has good credibility as the newly registered companies will not be much trust worthy and credible enough for making business deals.

This also explains that why do companies prefer to show off their corporation anniversaries – as it helps to offer higher level of credibility and faith. To explain this in a simple way, a business which is trading in the industry sector for more than 20 years will definitely have higher experience and hence will have higher credibility as compared to a similar company which is trading for last 6 months. Now, if you also had an option choice to choose which one will you trust more, the possibility is that you would also opt for the one which is celebrated their 20th anniversary publically. So, a shelf company provides the sense of longevity.

Also, it has been observed that it is a business policy that the company should be in the business for some more years. So why should you eliminate the part of a market by simply not opting to buy a shelf company?

Shelf Companies build high confidence in their clients

Exactly the same reason, the shelf companies might also get benefit from many clients as they appear to be actually older, and hence more faithful and trustworthy. There are many clients who do not prefer to work with newly registered company.  So, if there will be more clients, you will have more business, but not just this; clients putting their faith in old or existing businesses are possibly to be well-established. It helps to reduce the risk of doing business with such companies and this truly makes win-win condition.

You need not be limited by name of Shelf Company

Now, this is complete contrary to the existing belief, where you won’t get restricted to the name of shelf company when it is about choosing the shelf companies to purchase. To answer this in a simple way, yes you may change the name of a shelf company and this could be done in just some hours.

Is Shelf company or Aged company same?

Yes, Shelf companies are also known as aged companies. The age of company will affect the business that you plan to conduct. Here, number of years that the company is in existence might also affect the confidence of the potential business-like buyers, suppliers and creditors have in the company.

Does a company should be dormant and not reflecting the business activities of a new business?

The shelf company must initially be registered like a dormant company however it is usually suggested to file the statement of confirmation to change code of business activity, which is known as SIC CODE and the details of directors etc. Then, the company will be displayed at the Companies House with right kind of business activities and with the updated details of the company owners.

Does it take long time for transferring the company?

Modifying the details of company usually get completed in just a few hours.


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