A shelf corporation with a bank account is often sought after by entrepreneurs looking to expedite the process of setting up a company and starting to conduct business.
But, this isn’t the only reason that people seek to buy aged-shelf companies with an active bank account.
In certain cases, this is seen as one way to obtain arms-length financial accounts that aren’t in the owner’s name. But this is not entirely accurate and has nuances.
In this article, we’ll discuss whether buying a shelf corporation with a bank account makes sense, what countries offer it, and how to get started.
Feel free to jump ahead to the areas most relevant to you by using the table of contents below.
Table of Contents
- Where Can You Find Shelf Corporations?
- Banking for Shelf Corporations
- Frequently Asked Shelf Corporation Questions
- Do You Want Help Opening Offshore Bank Accounts?
Where Can You Find Shelf Corporations?
A shelf corporation (or a shelf company) is common in structuring jurisdictions like Hong Kong, BVI, Panama, and elsewhere.
In fact, it’s not uncommon to find lawyers selling shelf companies as an easy way to get started. Essentially the company is “aged”, which means the company has been registered for multiple years and the business is in good standing.
Is a Shelf Company For You?
In certain situations, entrepreneurs may find that a shelf company offers value and is worth considering as an alternative to registering a new company.
For example, if you want to bid on a contract or RFP and one of the stipulations is that the company bidding must be registered for a specific number of years.
Alternatively, you may be willing to pay a premium in order to obtain an aged corporation quickly and that doesn’t require as much paperwork or requirements. Essentially, someone can just buy an active corporation in good standing in an offshore jurisdiction as opposed to going through the process of registering one from scratch, which may require more back and forth with a service provider in some jurisdictions.
If you fall into either of these two categories, you might find that a shelf company is a suitable option to consider.
However, whether you can actually use that company for your intended purposes also depends on the banking.
Banking for Shelf Corporations
If you are considering a shelf company for banking purposes, you’re probably hoping that after you buy the company nothing will change with the existing account connected to the company.
Well, that is almost never the case…
In fact, when you become the new shareholder of a company, you need to inform the bank of the change. You’ll also need to provide the bank with the same due diligence information and supporting documents that would have been required during normal account opening procedures if you set up the account from scratch.
Of course, the bank has already vetted the company, and its business activities, and deemed that the company is an acceptable client for the bank. However, another critical variable that banks look at is who owns the entity and the ultimate beneficial owner(s).
So, business owners should not be surprised if, after a bank conducts due diligence on the new shareholder or director, the bank chooses to end the relationship with the corporation. This is becoming increasingly common, especially as international banks have taken a more intensive approach to de-risking.
Do You Want to Explore All Your Offshore Banking Options?
Frequently Asked Shelf Corporation Questions
Below are two of the most common questions that we receive from people exploring how to buy a shelf corporation (or shelf company) with a bank account. If you have any further questions, don’t hesitate to get in touch with us directly.
What Is a Shelf Corporation Used For?
A shelf corporation is used by individuals seeking an aged or matured corporation rather than building a corporation from scratch. For many individuals, buying an aged shelf company can often make it easier to apply for business financing. That said, not all shelf corporations are created equal.
What Is an Aged Shelf Company?
An aged shelf company is a company that was registered at least one year ago and is currently being “held” by a corporate registration service provider with the purpose of selling it to an interested party.
Who Can Obtain Aged Shelf Companies?
Anyone can obtain aged shelf companies if they are willing to pay the premium for purchasing a company that is already registered.
Do You Want Help Opening Offshore Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
You can learn more on the products page from the main menu above.
