A shelf company, also known as an aged or dormant company, is a pre-registered corporation that has been inactive or without any business activity. Such companies are commonly used by entrepreneurs and investors for various purposes. In this article, we’ll explore some of the benefits of using a shelf company.
- Instant Availability
One of the primary advantages of purchasing a shelf company is its instant availability. Unlike a new business setup, where the process of company formation can take several weeks, a shelf company can be acquired within a day. The company is already registered, and all the necessary paperwork has been completed. This speed and convenience are particularly useful for entrepreneurs who need a company quickly to pursue a business opportunity.
- Increased Credibility
A shelf company can provide an immediate boost to a new business’s credibility. A company that has been registered for some time is perceived to be more trustworthy and established than a newly formed company. This perception can be beneficial when dealing with potential clients, investors, and lenders, who may be more likely to trust a company that has a history.
- Enhanced Business Opportunities
By purchasing a shelf company, a business owner can take advantage of opportunities that would otherwise be unavailable to a new business. For example, some contracts and tenders require businesses to have a certain number of years of operation or a minimum turnover. A shelf company can help fulfill these requirements and provide access to new business opportunities.
- Faster Access to Bank Accounts
A shelf company can help expedite the process of opening a bank account. Financial institutions often require companies to be in operation for a certain period before allowing them to open a business account. A shelf company, with its established history, can help bypass this requirement and make it easier to open a bank account quickly.
- Reduced Legal Risks
A new business is more vulnerable to legal challenges than a company that has been established for some time. For example, a newly formed company may face legal challenges regarding its name, trademark, or intellectual property. By purchasing a shelf company, a business owner can reduce these legal risks as the company has already passed through these hurdles and is ready for business.
- Cost Savings
Starting a new business can be expensive. Purchasing a shelf company can provide significant cost savings as it eliminates the need for the business owner to go through the entire process of forming a new company. The cost of registration, legal fees, and other associated expenses can add up quickly. By buying a shelf company, a business owner can save both time and money.
- Increased Flexibility
A shelf company can provide greater flexibility in terms of business operations. The company may already have established relationships with suppliers and customers, making it easier to start trading immediately. The business owner can also make changes to the company’s structure and name without having to go through the entire process of company formation.
- Improved Access to Credit
A shelf company can help improve a business’s access to credit. Financial institutions often consider the age and history of a company when assessing its creditworthiness. By purchasing a shelf company, a business owner can access credit facilities more easily as the company already has a track record and established credit history.
- Ability to apply for Work Permit / hire foreigner
In Thailand, for a company to qualify to hire a foreigner, it must be at least 3 months old before it is being considered by the immigration office and labor office. This is one reason why many foreigner purchase a shelf company in Thailand. Some shelf companies may also include a nominee shareholder as part of it for a small fee as foreigner alone cannot register a Thai Limited Company
Conclusion
In conclusion, purchasing a shelf company can provide numerous benefits for entrepreneurs and business owners. The instant availability, increased credibility, enhanced business opportunities, faster access to bank accounts, reduced legal risks, cost savings, increased flexibility, and improved access to credit are some of the advantages of using a shelf company. However, it is essential to remember that purchasing a shelf company is not a substitute for proper due diligence. It is crucial to conduct thorough research and seek professional advice before making any business decisions.
If you are interested to purchase a shelf company, please check out https://unionspace.co.th/buy-shelf-company-thailand.php or check out www.unionspace.co.th for the range of services we offer to foreigners who wants to live and work in Thailand.
