The idea behind the company can be made overnight. But its establishment takes years. Company formation requires a lot of things infrastructure, human resource, a defined mode of procedure, an extensive marketing campaign and a stable market; not to mention a lot of procedures. As such, it will ask for a substantial amount of time capital. Of course, if we were to be realistic about the aspiration of building a business, most of us would be giving up on the notion right away on the count of its impracticality and complications. But with the resources we have now, such as the availability of outsourced personnel and a shelf company for sale, there is a bigger chance anyone can pursue the dream of being an entrepreneur in spite of not having gone through the usual process.
A shelf company is a business entity that was pre-made specifically to incur years of existence. It does not involve itself in any activity and is just set aside as a stand-by in case a currently functioning enterprise wants to change its identity and take on a new name. Getting a shelf company for sale or making one on their own while they still have the momentum makes it easier for them to shift gears when necessary. And as insinuated earlier, it could also be used by new entrepreneurs who want to be associated with a brand that is aged.
Now, convenience is not the only advantage a shelf corporation provides. Entrepreneurs could also secure opportunities for closing bids using a shelf company name. After all, there are a number of jurisdictions that demand the business they associate with should be experienced. On top of that, a company with a long list of credentials attached to its name, in spite of being internally new, would be able to win over consumers' and investors' trust. People often want to associate themselves with product and service providers that have had a long tenure with their exact industry. The same goes for banks and lending companies. The best loan policies and payment terms usually go to those that have substantial amount of documentation regarding their stability.
This brings us to a discussion over the acceptability of such a commodity when it comes to company formation. Some people argue that it is wrong to use the records of a pre-made company for your own benefit because they are not essentially earned. And it might also be taken advantage of and used as a ploy to cover up a business that has a bad history or illegal operations. However, sellers assert that majority of the time; all transactions pertaining to aged corporations are completely legitimate. Most, if not all run a background check on their buyers. Besides, it's not like they are cheap or abundant enough for any two-bit crook to have access to. And they are overrun by a set of regulatory laws. Typically, they are just taken into consideration by entrepreneur who want complete control over the many basic components involved in coming up with a business.