What is Shelf company?

A shelf company is a pre-registered, ready-made company that has been formed but not yet used for any business activities. These companies are typically set up by professional service providers and kept inactive or on the “shelf” until they are sold to a new owner who wishes to begin operations immediately. In Switzerland, shelf companies are commonly used for businesses that want to avoid the time-consuming process of incorporating a new company from scratch.

Key Features of a Shelf Company

  • Pre-Registered Status: A shelf company is already incorporated and has legal standing, meaning it can be transferred to a new owner quickly. It may have an existing legal name, registration number, and tax identification number.
  • No Prior Business Activity: Shelf companies have no prior business activities, liabilities, or financial history. This makes them an attractive option for individuals or entities seeking to start business operations without the delay of incorporating a new company.
  • Ready for Immediate Use: Once purchased, a shelf company can begin trading and conducting business activities immediately, saving time and allowing the new owner to bypass the typical startup processes involved in forming a new company.

Shelf Companies in Switzerland

In Switzerland, shelf companies are regulated by the Swiss Code of Obligations, and their use must comply with the country’s business formation and corporate governance regulations. While buying a shelf company can expedite the process of entering the market, the buyer must ensure that the company is in compliance with Swiss laws and regulations.

  • Legal and Financial Considerations: When acquiring a shelf company in Switzerland, the buyer should carefully review the company’s records and ensure there are no hidden liabilities or tax issues. The buyer may need to update the company’s name, registered office, and directors.
  • Tax and Regulatory Compliance: The use of shelf companies is subject to Swiss tax laws. Any potential buyer should ensure that the shelf company is compliant with Swiss tax and corporate regulations before assuming control.

Shelf companies in Switzerland provide a fast track to business operation, offering entrepreneurs and investors a convenient option for entering the market. However, due diligence is essential to ensure that the company meets all legal and financial requirements.