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Buying Shelf companies in UAE

MEDIA / Articles / 2021 / Buying Shelf companies in UAE
What is a Shelf Company?
 
A legal entity incorporated or registered by an individual with a purpose to be sold or transferred to another individual wishing to start a company without going through the hassles of incorporating a new one. Shelf companies are entities, mostly inactive, created mostly to age, and used mainly as a vehicle for various financial reasons. Such companies are kept dormant over a period of time for future use, they are legal and do have a legitimate business purpose.

A shelf company or a ‘ready-made company’ has no records of conducting business or real financial transactions and thus, no assets and liabilities are attached to it.

Why should one choose to buy a shelf company?
  • Choosing to buy a Shelf Company saves time and effort. For the business planners/entrepreneurs who happen to rollout their business expansion plan at a faster pace, such individuals will find buying a shelf company the easiest way to get their work in order. Some companies might have a bank account which eases the task of the new company owners.
  • Obtain credit facilities and corporate credit. Buying a shelf company may help obtain bank loans, corporate credit cards, and credit facilities as an aged company has a better standing than a newly incorporated company.
  • Secure business contracts. It can be challenging for a newly registered company to secure contracts. A sect of industries and government bodies would insist on engaging with long-standing companies rather than a brand new one.
  • Obtain a work visa easily. It is much easier to obtain work visas/ work permits/business visas for the employees and directors of an age-old established company.
  • Maintain goodwill amongst customers. Goodwill is an intangible asset which a company earns through consistency and good quality service. An established company has a higher hand in portraying a strong corporate image and improve client confidence.
How can Freemont Oneworld group help you?

Our team of experts will help you to assess your business plan and identify the correct form of Shelf Company for you. Our well-enabled search and access to an extensive database will help you assess companies, locate target companies, assess and verify their legal and financial liabilities and source the right option for you.

Furthermore, we can assist you in preparing the documentation necessary for the transfer of ownership, registration, or name change process, as required. We assist our esteemed clientele with bank account opening services and facilitate in various other procedures such as VTA registration, immigration process, registering entities for tax residency certificate (TRC), and periodical audit filing.
 

Do you wish to stay informed?

Thank you for your interest in Freemont Group, the specialists in company formation, asset protection and legal and advisory . Feel free to contact us with any inquiry you might have. We will provide you with a free initial consultation, and a customized solution for your personal situation.