A Guide to Shelf Company Formation in Dubai

A shelf company comes handy to optimise time-efficiency of business set up. A shelf company is a ready to sell corporate establishment. The shelf company owner registers for a company, maintains the company in regards with all financial as well as legal needs. Another entity can buy this company by wasting no time in documentation and registration procedures. Hence, the name given is ‘shelf company’ where a company is formed and kept in shelf for a potential sale.

A company can be formed via two ways in: first, buy a shelf company for a hassle free start focused on your business or second, open a new company and apply for the registration with all the required documents and await for approvals of licenses for your particular business.

Let’s discuss both the facets of the company formation.

Benefits of Purchasing a Shelf Company

Maximise time efficiency

An obvious reason to vouch for a shelf company is that it saves the crucial time which is utilised in other aspects of business setup in Dubai.

Cost Saving

Apart from investing time, money is also spent in the process of starting up a new company. This chunk can be saved to for other growth budgets.

Leverage the shelf period

The chances of extension on credit and lease period is more for a company established for a longer time. Similarly, it is a good choice to have shelf company to have loan sanctioned for other purposes on collateral terms. Other benefits for acquiring a shelf company is to gain early access to business visa, etc.

Benefits of Opening a New Company

There are few factors which makes shelf company less helpful, rather opening a new company from the scratch serves with the below mentioned edge.

  • company name
  • registered office and principal place of business address details
  • number and type of shares issued to each shareholder
  • Designation holding authorities, board members of the company
  • Charges not spent on tailoring prior company’s constitution
  • No company transfer cost

These days in many jurisdiction setting a new company is cheaper than buying a maintained shelf company. Also, in most developed countries registering a company is taking just few hours.

Although a shelf company’s prior constitution can be tailored, the buyer may have to pay extra to change the constitution. The reason why opening a new company is more cost effective is because of extra charges that is subjected to the purchase of a shelf company which includes transferring cost.

Why Business Setup Worldwide?

Business Setup Worldwide can help you on choosing the best option for your company formation. We analyse your sector and requirements of business to suggest the optimum steps for starting a company. Business Setup Worldwide is a platform to help you set up your business. Right from incorporation, registration and licensing to establishing your office space, we facilitate the formation of your company through expert counseling and incubation. Contact us for any query regarding shelf company, opening a new company or regarding various services required for business setup.