Just Like Aged Wine, Shelf Companies Are Sought For Their Established Formation Years
If you were to do a business deal between two companies; one is a start-up, and another one has had several years of establishment, which would you prefer? Some quarters might question if this necessary, just like some quarters would have their preference. On a general note, people would look at the offers first. But on second thought, researching further into companies will reveal years of establishment. Those other years may have been established just by leaving a registered company on the shelf. AI Accountant Chai Chung Hoong shares his expertise on what shelf companies are.
LEFT ON SHELF
Just like good wine and wisdom, the older it is, the better it becomes. The same applies to shelf companies. Shelf companies are complete registered companies. They are incorporated into Sdn. Bhd. and then left on the shelf to age. But, most shelf companies have several years from registration to being purchased by a new owner. These precious years are what makes shelf companies attractive to entrepreneurs with customers preferring established companies.
JUST LIKE ANY OTHER COMPANY
A shelf company is just like any other company. Its key attributes should include the following:
- Registered as Sendirian Berhad
- Has all the statutory forms, share certificates and common seal ready
- One Malaysian director
- The locally appointed company secretary
- At least one shareholder but less than 50 shareholders
- Paid-up capital of RM2
- Registered with a office address
SHELF COMPANY CONVENIENCE
Here are just some of the convenience of acquiring a shelf company to commence business immediately:
- Aged companies are ready for business anytime
- Established years translates into trust from investors and customers alike
- Shelf companies remain dormant since registration
- Shelf companies do not operate any business or do transactions, hence, no liability
- The buyer does not want to go through registering a new business from scratch
Shell companies can also be used to file for offshore status. As long as the business conducted abides by the law, shelf company for sale are registered as General trading companies. Which means you can start just about any activity you like.
TIME TO PURCHASE
Now, it is time to purchase a shelf company. The requirements are simple, and processing is effortless. Let’s see the conditions and process involved:
- A director must be at least 18 years old
- A copy of the director’s and shareholders Malaysian identification card
- Latest Malaysian residential address for each director and shareholder
- Contact number for each director and shareholder(s)
- An email address of each director and shareholder (s)
- Choose from a list of shelf company
- Read through all documentation
- Sign the contract
- Make the payment and wait for the transfer of ownership
CONCLUSION
So there you go. Now you have an idea of what is a shelf company and what it entails. If you still have doubts or questions lingering, how about get in touch with Account Manager Chai Chung Hoong from AI Accountant. The expert in proper business setups that you can approach with all your business concerns.
