Purchasing a shelf shelf corporation corporation is a viable solution for entrepreneurs who need to obtain a company registration number in a hurry. However, it is important to choose a vendor who offers clean shelf corporations.
A truly clean aged shelf corporation will not have any financial history or bank accounts. It should also not have any tradelines or corporate credit built in.
What is a Shelf Company Warehouse?
Shelf Company Warehouse specialises in high volume, low-cost new and aged Pty Company registrations. Their services include registering profit companies, private, public and personal liability companies, conversions (CC to COMPANY, PUBLIC TO PRIVATE) and restoration of deregistered CC’s and companies. They also draft custom memorandums of incorporations.
Location labeling in a warehouse can vary from one company to the next, but there are some industry standards that should be followed in order to prevent confusion for your pickers. Typically, warehouse locations are divided by aisle-rack-shelf/row-bin. This means that each section of shelving is numbered from the bottom up, so that the first bin on a rack is number one and the last bin on the rack is number five. This allows the pickers to quickly find a specific item without having to count up from zero each time.
Another common method of identifying warehouse locations is by rack, which refers to a large section of shelving that stores your product. Depending on the size of your warehouse, these racks may be identified by an individual aisle or they might be numbered by their position in a long until of shelving. In either case, it’s important that your rack-level numbering scheme is consistent across your entire warehouse, so that your pickers can easily identify the location of an item they’re looking for.
An aged shelf company is a Pty Company that’s been registered at the CIPC before, meaning it already has an established history. This can be helpful when trying to secure contracts with suppliers because it makes your company seem more trustworthy and established. It can also be beneficial if you need to apply for tenders, as some industries and government authorities insist on you having an existing company when applying.
What are the Benefits of Buying an Aged Shelf Company?
Shelf corporations offer an attractive shortcut for business owners in need of a corporate identity that is legally sound and established. However, there are many risks involved in using aged shelf corporations as a way to bypass credit and age requirements for business financing or other opportunities. The legal gray area surrounding shelf corporations also leaves them vulnerable to fraudulent practices and ill intentions.
In order to reap the benefits of an aged corporation, it is important to work with a reputable vendor. There are plenty of vendors out there selling aged corporations, but not all are created equal. Some vendors will buy up older companies and then sell them to their customers with a claim that they are "clean" or have no previous liabilities. This is a dangerous practice that can put your business in serious jeopardy.
A reputable vendor will be able to provide you with aged corporations that are guaranteed clean and free of any previous liabilities or tradelines. They will also be able to help you choose an aged corporation that best fits your business needs. They should also be able to answer any questions you may have about the company and how it can benefit your business.
Another benefit of an aged corporation is that it can give your business a more professional image and boost client confidence. It can also make it easier for you to get a bank account or credit card in the name of your new business. It is much harder to do so with a recently registered business.
One final advantage of an aged corporation is that it can help you bypass credit and age requirements for business financing. This can be an important factor in obtaining the financing you need to grow your business. However, it is important to note that there are a lot of lenders who will detect this and will not approve your application.
If you are considering buying an aged corporation, it is important to do your research and find a reputable vendor. There are many dangers involved with this practice, so it is essential to work with a trusted source that can provide you with clean and legitimate aged corporations. By following these tips, you can avoid the pitfalls of buying an aged corporation and take your business to the next level.
How do I Buy a Shelf Company?
Shelf companies or aged corporations, are legally-registered businesses that have never conducted business activities. They can be purchased by people who want to skip the process of registering a new company, which normally takes months.
Traditionally, purchasing a shelf corporation was a legitimate way to streamline the startup process and could be used to obtain credit lines or bank loans that new businesses might not qualify for. However, the practice of selling shelf corporations to get around credit guidelines is illegal and can carry serious consequences.
It’s not uncommon for a small business owner to try to take shortcuts to help them get ahead. While it’s always a good idea to have a strong business credit profile, taking the time to build it the right way is the safest and most effective route to take.
However, it’s not uncommon for a company to sell shelf corporations to individuals who are trying to skirt the law by buying them to gain access to credit that would otherwise be impossible. It is also not uncommon for companies to form shell corporations in states like Nevada, Wyoming, Montana, and Texas for regulatory reasons.
Typically, a company selling shelf corporations will offer several different packages with various ages of companies and varying amounts of annual registered agent services. At Wyoming Corporate Services (WCS), for example, prices range from $645 for a shelf corp that is less than one month old to just under $7,000 for a fifteen-year aged shelf corporation with an EIN.
The age of a company is important because the longer a company has been in existence, the better it looks on a D&B report. While this isn’t necessarily true for all businesses, some clients will be more receptive to doing business with a company that has an older D&B date than a brand-new entity.
Additionally, a more established D&B record can be beneficial when applying for a business bank account as it will make the application seem more legitimate to a banking representative. It’s also often easier to gain credibility with suppliers if a company has an older Company Registration Number at Companies House because it appears more trustworthy than a newly registered entity.
What is the Difference Between a Shelf Company and a Pty Company?
Shelf companies are a legal entity that has been registered at the CIPC (Companies and Intellectual Property Commission) but has no activity. They can be bought by people wanting to start a business quickly without having to go through the lengthy process of setting up their own company. These companies can be purchased with a name already on the public register and their Company Registration Number is ready to use immediately.
However, there are some concerns when it comes to buying shelf corporations. For example, if a shelf corporation has been used for illegal purposes, it could have lingering liabilities or lawsuits that the new owner would be responsible for. This is one reason why it is important to only buy a shelf corporation from a trustworthy seller.
A shelf company may also have a history that can be seen by anyone who checks the Companies House website. This can be beneficial when it comes to securing contracts with suppliers and clients as some industries/government authorities require companies to have been registered for a certain amount of time before they can make tenders or contract with them.
There are also some concerns around obtaining financing with a shelf company. Lenders typically look at the length of time a business has been in existence when they are assessing a loan application. Using an aged shelf company to circumvent this requirement and apply for financing can be misleading and even illegal.
There are also concerns regarding VAT (Value Added Tax) numbers when it comes to shelf companies. If a person is buying a shelf company and wants to add a VAT number, they will need to submit a COR39 form with the CIPC (Companies and intellectual property Commission) to amend the director details and have the Director Change approved by SARS (South African Receiver of Revenue). This can take up to 21 working days from the date the form is submitted. This is why it is important to choose a reputable company when purchasing a shelf company to ensure that all changes are made properly and that all necessary documentation is in order.
