Shelf corporations
A corporation incorporated a long time ago, but never been used is known as a Shelf Corporation. A lot of individuals could be interested in these kind of corporations because the ownership is transferable.
Shelf corporations enable the engagement into business, credit, or property agreements, being an established company, without having to go through the waiting period and establishing a brand new corporation.
Most potential creditors or business resources are less inclined to extend credit or lend to new or start-up corporations. But in the case of Shelf Corporations, since they are already established, the accessibility to lines of credit, relationship with bankers and new leases , increases.
Shelf corporations also provide large borrowing power as well as enhanced credibility for business when corresponding with customers and lenders.
There are a lot of countries still dealing with Shelf Corporations, the U.S., Australia, U.K., South Africa, Canada etc...
The advantages to buying a shelf corporation are:
Saving time in creating a new corporation.
Opportunity bidding on contracts because some jurisdictions look at the business longevity.
Gaining access to corporate credit.