What are the advantages of choosing a shelf company?
A shelf company enables your business to appear more trustworthy, your suppliers and clients are likely to have more confidence in businesses that have a longer operating history. Having the ability to establish business relationships with banks, banking institutions and suppliers is usually top of the list when looking to purchase this type of company. Shelf Companies have already been set up correctly and a simple change of the company officers is all that’s required to transfer ownership. Read about the advantages in more detail below:
Click here to view a list of our Shelf Companies.
Gain new contracts and suppliers
A Shelf company is pre-registered with Companies House and therefore already has a history. Anyone can access the Companies House website to see when a company was registered and therefore see the longevity of the company.
How can a shelf company help with Contracts and Suppliers?
- When starting your business venture it can be difficult to secure contracts as you are classed as a new start up. Some industries / government authorities insist a company must have been registered for a certain amount of time before they allow tenders to be made. Therefore, a company with a history would be extremely beneficial in these circumstances.
- It can be a challenge to gain trust from suppliers due to the company being recently registered. A shelf company with a history at Companies House would promote a more professional image and therefore appear more trust worthy.
Easier to be approved for business banking
Banking is an important and essential part of the day to day running of your company. Any company requiring a professional image should have a business bank account.
How can a shelf company help to obtain a Bank Account?
- When approaching a bank for an account, credit card or business loan it can be more favourable to have an aged company then a recently registered company.
- Banks may be inclined to see that investments made with an older company is a safer option then with a new company that is shown as newly registered with Companies House.
Improve new client confidence by showing that your business has history
Every business needs clients and clients who have confidence in the business usually are a major part of the overall success of the company.
How can a shelf company can help boost Client Confidence?
- Research shows that clients like companies who can show longevity as they give the impression of being trustworthy and gives confidence the business is experienced in its relevant field. A shelf company will give the impression that the company has been around longer and therefore give the client the confidence to do business with you.
- Most companies promote anniversaries of their business showing the importance of being around longer, new companies unfortunately do not give the same impression and clients are less likely to have faith in them.
Save time compared to forming a company from scratch
When staring your business venture there is a great deal to think about and time-consuming duties to complete. Setting up your company should be easy, simple and stress free.
How can a shelf company help you to save time?
- The company is already registered at Companies House and therefore changing the officer details is the only requirement. Changing officer details can be done electronically and takes a few hours, which is quicker then the average 24 hours to register a new company
- You will have the confidence that the company has been set up correctly by an expert.
- You can begin trading with the company within a few hours of purchase, giving you one less factor to think about.
Shelf Company Myths
- Is it possible to change the name of the shelf company?
All companies can change their name at any time as long as the name is not already registered take. A change of name can be submitted electronically and usually only takes a few hours.
- Does the company have to stay as dormant and therefore the business activities will not reflect the new business?
A shelf company should initially be registered as dormant however we always recommend to file a confirmation statement to change the SIC CODE (business activities) and directors etc. The company will then be displayed at Companies House with the correct business activities and company owners.
- Will it take a long time to transfer the company?
Changing the officers of the company can usually be completed within a few hours
- Will the company will have bad debt.
When you purchase a shelf company always check that the company has been dormant since incorporation. Dormant companies do not have bank account and are unable to apply for loans. Always ask for confirmation of non-trading.
View a list of our Shelf Companies here.