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Shelf Company

A shelf company is a company that has been incorporated in advance and left inactive, ready to be sold to someone who wants a company that already exists.

Corporate service providers incorporate shelf companies and hold them dormant so a buyer can acquire an existing company quickly rather than waiting for a fresh incorporation. After purchase, the buyer typically changes the company's name, directors, shareholders, and registered office. Because a shelf company has an earlier incorporation date, its record may show a period of dormancy and a name change soon after being sold.