Offshore Shelf Company/Vintage Company
A shelf company, also known as a vintage company is one that has been incorporated for several years, but has not carried out business activities. These companies are stored, like fine wines, so that once they have reached a certain maturity they will be able to begin operating.Such companies are formed with unconcealed intention that at some point someone will purchase and commence operations. Legislation in many countries exempt from taxation (tax havens) allows the establishment of such companies.Usually vintage companies are more expensive since the price consists of several factors and is generally higher than the price of a newly registered company. First, the cost for the initial incorporation of the company, as well as the annual maintenance costs for office and registered agentfor each year of existence of the company. Finally, the cost of maturity which is generally a fixed annual amount for each year of existence of the company.
Benefits of an Offshore Shelf Company/Vintage Company
- Improves corporate image.
- Satisfies requirements for credit card companies, which often stipulate that a company must be operating for at least six months.
- Satisfies banks and credit unions, which may stipulate that a company must be operating for at least a number of years to apply for credit or loans.
- Satisfies contract bidding requirements that may stipulate all bidders must be operating for at least a specific number of years.
- Establishes a history for your business.
- Encourages companies to do business with you. Some companies are more willing to do business with an established company vs. a younger company.
- Facilitates obtaining corporate credit cards and leases.
