Buying a shelf company in Hong Kong is a term that is used to describe often a ready-made company that was already incorporated sometime back and has been dormant to date.
Most business consultants in Hong Kong will offer such a solution to cater to investors who seek quick turnaround solutions without experiencing the registration process. If you want to register your business in HK, visit our Hong Kong Business Registration detailed guide.
The key features of a Hong Kong shelf company are:
- Already registered and live but unused to date.
- Customisable by purchasers
- Immediate ownership and commencement of business.
- Credibility, as most shelf companies, is usually at least one year old or more.
STEPS TO BUYING A HONG KONG SHELF COMPANY
As no registration is required if you are buying a shelf company, the process of owning one is a lot simpler. Conveniently, it will only require you up to 24 hours to establish ownership.
When purchasing a shelf company, these steps are typically followed;
- Choose a Shelf company (based on its incorporation date)
- Fill out all the application forms and submit all the required personal documents of the director/shareholder of the company.
- Understand the existing Articles of Association (AOA)
- Submit the relevant documents for change of ownership to the HK Authorities. The authorities will revert to the completed transactions within 24 hours.
- Commence business and proceed with a corporate bank account opening.
BENEFITS OF BUYING A SHELF COMPANY IN HONG KONG
Generally, these benefits are deemed attractive by many investors and business owners as they reduce the consumption of both funds and time. The benefits are;
- Simpler process – Since a shelf company is already pre-registered, the registration process, which comprises various legal formalities, is entirely skippable and placed with a lot more convenient step, which is updating the company ownership, which takes only a couple of business days.
- Instant business operation – Purchasing a shelf company will completely give you a head start on operating a business and get a quicker result by possibly months. Instead of handling documents for registration, you can go ahead and focus on subjects that matter more to your business, commence operations and employ employees or even enter into contracts.
- Investing motivation – As the shelf company is created prior to the purchase of the interested owners, the earlier date of the establishment will create a sense of longevity that will be helpful in persuading and attracting investors to the company.
Is Purchasing A Shelf Company In Hong Kong Legal?
Yes, purchasing a shelf company is entirely legal. A shelf company formed on paper, but nothing has been done with the corporation for years and it does not engage in any real business.
What Is The Difference Between A Shelf Company And A Shell Company in HK?
A shelf company is completely inactive without a bank account and is kept for future sale to investors/owners who wish to secure a quick solution. However, shell companies are companies that are majorly used by law firms and have been legally registered for use in the future. A Shell company may already have a bank account or passive investments with a registered owner.