Advantages of using a Shelf Company
Starting a business from scratch can be a time-consuming and challenging process. However, entrepreneurs have an alternative option available to them: buying a shelf company. A shelf company, also known as a ready-made company or shelf corporation, is a pre-registered company that has little nor no recent activities. It provides entrepreneurs with the opportunity to acquire an established company without going through the complexities of starting from scratch.
In this article, we will explore the advantages of using a shelf company in the Netherlands. We will discuss how shelf companies can save time and money, provide access to international markets, offer protection for the corporation, and enhance credibility with lenders. By understanding the benefits of shelf companies, entrepreneurs can make informed decisions about their business ventures.
Advantages of Using a Shelf Company
1. Time and Cost Savings
One of the primary benefits of acquiring a shelf company is the time and cost savings it offers. Starting a business from scratch involves a lengthy process of fulfilling various legal requirements and documentation. However, with a shelf company, many of these prerequisites have already been completed. Entrepreneurs can bypass the time-consuming registration process and start their business activities almost immediately. This advantage allows entrepreneurs to focus on other aspects of their business, such as developing products or acquiring customers.
2. Access to International Markets
Expanding a business to international markets can be a complex and time-consuming endeavour. However, purchasing an offshore shelf corporation can provide entrepreneurs with a quick entry into foreign markets. Shelf companies registered in other countries may offer tax advantages and streamlined registration processes, enabling entrepreneurs to start marketing their products or services rapidly. By leveraging the existing infrastructure and documentation of a shelf company, entrepreneurs can gain a competitive edge over their competitors in the international market.
3. Protection for the Corporation and Reduced Renewal Fees
Limited Liability Companies (LLCs) are a popular type of shelf company that offers protection for investors’ assets. In the event of legal actions or lawsuits against the company, only the shelf corporation itself is targeted, safeguarding the personal assets of the investors. Additionally, the fees required to renew and maintain shelf companies are generally lower compared to those of newly registered corporations. This cost-saving advantage allows business owners to allocate their resources towards more ambitious projects or investments.
4. Improved Credit Score
Newly established companies often struggle to build a good credit history, making it difficult for them to secure loans from financial institutions. However, by purchasing a shelf company that has been in existence for a considerable period, entrepreneurs can benefit from the company’s established credit history. Banks and other lenders are more likely to have confidence in offering loans to shelf companies with a proven track record of financial stability. This advantage opens up opportunities for entrepreneurs to access the capital they need to grow their business.
5. Credibility and Longevity
The age of a company can significantly impact its credibility and perception in the business world. Buyers, creditors, and suppliers often consider the number of years a company has been in operation as a measure of its reliability and stability. By acquiring a shelf company with an established history, entrepreneurs can enhance their business’s credibility and build trust with potential partners and customers. This advantage can be especially beneficial when engaging in business transactions that require a certain level of trust and confidence.
6. Government Contracts and Immigration Advantages
In many countries, government contracts are only awarded to companies that have been in operation for a specific period. By purchasing an aged shelf company, entrepreneurs can fulfil this requirement and increase their chances of securing lucrative government contracts. Additionally, having an established shelf company with a track record can facilitate the process of obtaining business visas or work permits for company directors. Immigration authorities often consider the age and history of a company as an essential factor when assessing visa applications.
Conclusion
Using a shelf company in the Netherlands can provide entrepreneurs with numerous advantages. Time and cost savings, improved credibility and access to international markets, acquiring an established company fast-tracks business growth and expansion. Additionally, shelf companies offer protection for investors’ assets, reduced renewal fees, and the opportunity to leverage an existing credit history. By understanding the benefits of shelf companies, entrepreneurs can make informed decisions and propel their businesses to new heights.
If you’re considering purchasing a shelf company in the Netherlands, Shelf Company EU is the world’s leader in shelf companies. Our Entity Management solution is location and agent independent, empowering you to run your company as you please. With our extensive range of services and resources, we are committed to simplifying the process of setting up and managing your business overseas.
Contact one of our professional team now and find your perfect Shelf Company, or the formation of a new Dutch company or Dutch branch.