To begin with an overview of shelf companies or an aged corporation, a Shelf Company or an aged corporation is a company or a corporation having no present activity. Such companies are pre-fabricated; unused corporations probably put on â€œshelfâ€ to â€œageâ€ and have been set-up with the sole purpose of meeting clientâ€™s specific needs. Such companies have never conducted any business operations having no assets and liabilities and have been set-up exclusively for being sold. It can be sold to a person or a group of persons wishing to start a company but reluctant to undergo the procedures of creating a new one. Going ahead with a snippet or an overview of shelf companies or an aged corporation, since registration of company in India takes about two weeks time, Shelf Companies are a very swift way of getting business doing and running with least of business set-up formalities. New Directors can be appointed within a day and a bank account can be immediately opened to start trading without delay. Frequent reasons for buying a shelf company are:
- Â Save in time for the steps involved in the creation of a new company
- Â Showing companyâ€™s prolonged existence in order to attract consumers or investors
- Â Gaining effortless availability to corporate credit
- Gain opportunity to bid on contracts instantaneously.