As a shelf company is defined as a corporation that has not been established with the intention of undertaking an economic activity. Instead, they will later than “empty shell” of the external legal form , eg GmbH , AG or GmbH & Co. KG , is sold to a third party, who then uses the company in establishing an activity. In contrast to the shell company the shelf company has looked never a previous business.
The buyer saves the tedious registration process of the corporations and the associated liability risks of a GmbH in formation . Another advantage is the secured to the foundation of freedom old debts from previous operations of the Company. The buyer has to purchase the shelf company only in the commercial register disclose that there is a shelf company, the necessary information to headquarters, corporate purpose , make members of the institutions, etc., and the insurance of the CEO enclose that the capital is in their leisure .
The effective date is the date on which and disclosure and not the final registration. Shelf companies are usually so ready within a day, it remains the responsibility of the company’s assets is limited.
Besides German companies often shell companies under foreign law, in particular to British Limited offered. In tax havens based shell companies are additionally used in corporate finance to evade the tax laws in force at the place of business.