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Shelf companies

shelf company, is a LLC (SL)  or corporation (SA) that has had no activity. It was created and left with no activity - metaphorically put on the "shelf" to "age". The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.

 

The usual in Spain is to acquire your shelf company in the structure of a SL. If you find a corporation more attractive but you still opt for buying a shelf company, you may transform your newly acquired SL into a SA. 

Common reasons for buying a shelf corporation include:

 

To save the time involved in taking the steps to create a new corporation.

To gain the opportunity to bid on contracts. Some jurisdictions require that a company be in business for a certain length of time to have this ability.

To create an appearance of corporate longevity, which may boost investor or consumer confidence.

To gain access to investment capital.

To gain easier access to corporate credit.

 

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