Shelf Company is a company that has already been registered. The term Shelf Company refers to a company that is symbolically sitting on a shelf and waiting to be bought by a client. Once a CIPC Shelf Company is bought, the owners of the company can immediately start doing business.
There has been a degree of confusion regarding what a Self Company is. A lot of people see one as a company that is yet to be incorporated. But that is not the truth. A CIPC Shelf Company can start doing business the second it has been bought by a client.
Types of CIPC Shelf Companies
When referring to a CIPC Shelf Company, there are basically two kinds; old and new. There are various names which are used to describe these types of Shelf Companies. New and old are the generally accepted terms. Other terms used for to describe old companies are, aged, mature or historic Shelf Companies. Recent or current companies are used to describe the newer Shelf Companies.
There is no real timeframe to describe whether a company is a new or old CIPC Shelf Company. It is widely accepted that a new company was formed in the last three to six months, or the current year. Old companies are generally accepted at any given time beyond that.
Some Shelf Companies have already done business. When one of these companies has never done business, they are referred to as clean Shelf Companies. Be sure that before you start looking for a CIPC Shelf Company, that you know what you are searching for. Different Shelf Companies cater for different people.
There are some Shelf Companies that come with tax file numbers, insurance licenses and bank accounts. These companies are very rare, because they are a massive advantage if you need a turn-key solution for your business. This will ensure that the owners can just “turn the key” in order to start doing business.
Why would you buy a CIPC Shelf Company
There are multiple reasons to buy a CIPC Shelf Company. Some companies need to be in business for a certain period in order to bid on contracts. When buying a CIPC Shelf Company that is older, you can already bid on some contracts even if you bought the company a month ago. It also saves the time involved when creating a new company. Some banks also require a business to mature before they give them access to corporate credit. When buying a CIPC Shelf Company, your chances of qualifying for corporate credit are improved.
- When buying a new CIPC Shelf Company, you cut out the waiting period. In some places the incorporation process may be slow and in buying a new CIPC Shelf Company you cut out the waiting period.
- You will also be able to know that when you buy a clean CIPC Shelf Company, that there is no credit or tax issues with the company.
- When buying an old CIPC Shelf Company, some processes will be made easier. Banks will be more willing to open accounts for the business for the reason that they already have business ‘experience’.
- A CIPC Shelf Company is already incorporated. This means that they are already registered under a specific name. Luckily, the name of a business can easily be changed.
- If you did not do proper research on the company, you may find that the company has debt or some kind of liability. This can be avoided when you research the company and inquire about the credibility of the company.
This is an easy way to get your business up and running. Be sure that you do sufficient research before you buy a CIPC Shelf Company. Once you are done and have bought your CIPC Shelf Company, success is just around the corner.