| Surprisingly enough shelf companies do not make | | | | beneficial features of shelf companies are dubious |
| shelving. They are formed companies that are | | | | dependent on what provider you buy from and |
| available to buy from retailers who create the | | | | will be made clear when we examine the bad and |
| companies to sell as businesses. Those businesses | | | | ugly features of shelf companies. |
| might well include selling actual shelves however | | | | Some shelf companies are not newly formed at |
| the name shelf company comes from the | | | | all, in fact many companies that have gone into |
| concept of a company being created then being | | | | administration or have been liquidated end up |
| put on the shelf to give a certain shelf life to that | | | | being sold to companies who will let the dust |
| company. | | | | settle then sell the company on as a shelf |
| The good in all of this is that if someone is looking | | | | company. As stated it all depends on choosing a |
| to start a corporation for a variety of reasons | | | | scrupulous provider of the service, as many of |
| they need not go through the process of | | | | the aforementioned companies might well have |
| company incorporation, however in most western | | | | poor credit ratings and will therefore not be eligible |
| countries these days the process of company | | | | for corporate credit. |
| incorporation is generally inexpensive and straight | | | | The ugly side of shelf companies is that all the |
| forward. The other good point of shelf companies | | | | beneficial features can backfire if credit agencies |
| is that finance or credit can be obtained against | | | | discover that the corporation is in fact purchased. |
| the company name. | | | | It is dubious whether shelf companies can |
| This is sometimes affected by how long the | | | | improve access to capital, especially in the current |
| company has been in existence. Like a good wine | | | | financial market and when a new company |
| the retailer of shelf companies will have formed | | | | recognises the change of management then it can |
| the company some time ago to give it some | | | | be listed as 're-aged', this will not be looked |
| longevity and this looks good in lenders eyes | | | | favourably on by credit agencies. |
| when applying for finance. In some places you | | | | Avoiding the negative features of shelf companies |
| cannot trade or even make proposals for specific | | | | can be done by researching the providers and |
| contracts unless you have an incorporated | | | | companies themselves. There are many online |
| company, this is another popular reason for | | | | providers of shelf companies and the trick is to |
| purchasing a shelf company. | | | | find one with a proven track record. If you are |
| Corporate credit and investment capital aside the | | | | looking for a shelf company for short cuts into |
| other good reason for investing in a shelf | | | | capital investment it might well backfire on you, |
| company is that you can gain a certain amount of | | | | however if you are looking for enhancing features |
| consumer confidence of the company has been in | | | | to a well conceived business venture then it is a |
| 'operation' for some time. Some of these | | | | sound investment. |