In the not so distant past, anyone who wanted to form their own company (or incorporate a company) had to wait for a long time before they could get their company incorporated. This is because creating companies take a lot planning, strategizing and time. However, not all of us have the luxury of time. Most businesses cannot afford to wait for several months or a year before they can form a company. For pressing financial reasons, entrepreneurs often find themselves needing a company as soon as possible. This need and urgency, coupled with an easy online system of registration has created a whole new option for entrepreneurs called off the shelf companies. The creation of off the shelf companies has made a huge difference in the way people form companies. This facility makes it easy and quick for anyone who wishes to own a company in a hurry.
An off-the-shelf company, very loosely defined, is a legally formed but incomplete company. This means that the company has fulfilled all its legal requirements to become registered except for the appointment of its directors. Off-the-shelf companies are available for sale and bring the purchaser the convenience of transforming the company with ease and at a very low cost.
Many company formation agents ‘pre-create’ companies and keep it with them for the use of businesses that need a company urgently or inexpensively. This made it possible for people to acquire a company as and when needed.
Buying an off the shelf company is very easy. First the off the shelf company provider must transfer all of the shares of the company to the buyer. Second they must allow the current directors of the company (if any) to resign in order for the new directors (usually the buyer and/or its appointed directors) to take control of the off the shelf company. After this, the newly appointed directors have all the power to direct the company, manage its assets and take control of its funds. During this time, the buyers may wish to keep the company name under which it has been originally registered or change the name to a new one, which is more in keeping with the nature of their business.
However, with the arrival of online company registration services, it is no longer necessary for businesses to wait to create a new company. So, there is less demand for these off the shelf companies. One of its major drawbacks is that these shelf companies provide much less flexibility to owners than companies that have been custom built around their needs. Even so, one cannot discount the benefits of this option. Off the shelf companies make it very convenient for businesses to become incorporated. There is fewer administrative hassles and expenditure in the creation of the new company when compared to purchasing a ready-made company if you find a shelf company where you do not need to change anything much. In that case, all you may require is possibly change the name of the company, transfer shares and pay stamp duty on the shares transfer.
An off-the-shelf company, very loosely defined, is a legally formed but incomplete company. This means that the company has fulfilled all its legal requirements to become registered except for the appointment of its directors. Off-the-shelf companies are available for sale and bring the purchaser the convenience of transforming the company with ease and at a very low cost.
Many company formation agents ‘pre-create’ companies and keep it with them for the use of businesses that need a company urgently or inexpensively. This made it possible for people to acquire a company as and when needed.
Buying an off the shelf company is very easy. First the off the shelf company provider must transfer all of the shares of the company to the buyer. Second they must allow the current directors of the company (if any) to resign in order for the new directors (usually the buyer and/or its appointed directors) to take control of the off the shelf company. After this, the newly appointed directors have all the power to direct the company, manage its assets and take control of its funds. During this time, the buyers may wish to keep the company name under which it has been originally registered or change the name to a new one, which is more in keeping with the nature of their business.
However, with the arrival of online company registration services, it is no longer necessary for businesses to wait to create a new company. So, there is less demand for these off the shelf companies. One of its major drawbacks is that these shelf companies provide much less flexibility to owners than companies that have been custom built around their needs. Even so, one cannot discount the benefits of this option. Off the shelf companies make it very convenient for businesses to become incorporated. There is fewer administrative hassles and expenditure in the creation of the new company when compared to purchasing a ready-made company if you find a shelf company where you do not need to change anything much. In that case, all you may require is possibly change the name of the company, transfer shares and pay stamp duty on the shares transfer.
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