BVI Shelf Company: Meaning, Advantages and Buying Process

A shelf company or ready-made corporation is a corporate entity that has been properly registered but has not yet established any trade or commercial activity. Investors are relieved of the responsibility of overseeing the entire business creation process when they buy a BVI shelf company.

However, they will be responsible for handling the paperwork required to transfer ownership of the business. The time needed to incorporate a BVI firm is greatly reduced by buying an existing, ready-made organization.

The transfer documents must be handled by the investor purchasing a legitimate corporation.

BVI Shelf Corporation

One of the reputable business locations that offer a practical and simple way to start an offshore business is the British Virgin Islands (BVI).

An existent business unit that is listed in the registry's records but hasn't conducted any business operations is referred to as a shelf company. However, with the development of technology, it is now possible to set up a company in a well-known offshore jurisdiction with only one click.

It is simpler for business owners to move through with the payment procedure and purchase the business unit because these business units are already registered.

Shell BVI Company

People might purchase a shelf company if they wish to launch a firm quickly and without completing all the necessary paperwork.

These "purchased off the shelf" businesses are typically developed and made available for sale by accounting or legal firms.

Not to be confused with shell corporations from the British Virgin Islands, which are typically fictitious businesses created only for fraud and money laundering.

The person or group that established a shelf company went through the expense of setting up the business legally, but they ultimately decided not to use it.

Read the BVI offshore company guide if you're interested in forming an offshore company.

Shelf Company with a Bank Account in the BVI

If the off-the-shelf business comes with a bank account and a merchant account—which are generally regarded as premiums when purchasing this kind of business—the price will be higher.

This suggests that you won't need to go through the steps necessary to open a bank account in the BVI, though. 

A business with extras should only be purchased if absolutely essential. Have a team of experts perform due diligence on the bank statements and other documents made available because of the additional if this is crucial for the functioning of your business. It is typically advised because these businesses are operating and registered elsewhere (such as the bank in addition to the Trade Register).

The BVI Shelf Company's Advantages

Let's take a quick look at the advantages of moving forward now that you have a general understanding of what a shelf or ready-made firm is.

  • The process of forming a company is not required of you.
  • The procedure can move along more quickly.
  • Gaining the trust of the market is facilitated by purchasing an older company.
  • It is simpler to establish banking links because the business unit already exists.

A business investor might get many advantages by establishing an offshore operation in the British Virgin Islands. Look at the top 10 advantages of registering an offshore business in the British Virgin Islands to learn more about it.

The BVI Shelf Company Buying Process

It is not guaranteed that the documentation will be sent right away when purchasing a ready-made business in the BVI. Instead, a particular sequence of steps must be taken.

For instance, you must employ the following strategy if you intend to purchase an offshore shelf company and continue the business.

1. Speak with an expert

It is advised that you run your business operations in an offshore jurisdiction under the direction of trained specialists who have all the necessary knowledge. For instance, one needs to first clear the documentation when purchasing a shelf company in the BVI. The legal procedures must be handled properly because a process without errors will enable you to achieve your aim.

2. Pick the appropriate business unit

Once you've teamed up with your business specialists, you must browse the list of potential business units to decide which one best suits your needs. The procedure of incorporating an offshore company is something that experts handle every day. They will, therefore, be in a better position to advise you on the shelf companies that are available on the market.

The second aspect to take into account when purchasing a shelf firm is the price. Dealing with licensed business specialists gives company investors an added benefit because they can haggle and secure the best bargain for you.

3. Managing the Offshore Bank Account

You cannot avoid opening an offshore bank account when forming an offshore business unit. A business investor can conduct transactions internationally and enter the global market by establishing an offshore firm.

After buying an offshore shelf company, you must open an offshore bank account online with a reputable bank in any well-known offshore location.

The investors are free to choose another offshore site or the same offshore ground to open a bank account.

4. Update the papers

The following step requires you to amend the shelf company's legal records. But once more, your business advisor can help you through the procedure to make it less complicated.

5. Start your business's operations

You can easily start your business operations after the paperwork is finished.

You must now have a general notion of the steps that need to be taken in order to purchase a shelf firm. It is advised that you move forward with the advice of licensed business professionals who can help you.

Why BSW?

The business procedures that must be performed in order to start a corporation are handled by Business Setup Worldwide. Our business experts can assist you at every stage, including the incorporation of a new offshore unit, the purchase of a shelf company, and the opening of an offshore bank account.

They can offer specialized solutions thanks to their many years of industry experience, which has helped us become one of the best business consultants in Dubai.

Contact us right away if you want to learn more; we'd be happy to help!

FAQs

What documents need to be submitted for BVI company registration?

ID Proof
Passport Copy
Address Proof
Memorandum of Association (MOA)
Articles of Association (AOA)

What is the shelf company registration fee in BVI?

Starting from USD 2500.

How lawful is a shelf corporation?

A shelf corporation is a legal entity.

How long does it take to purchase a shelf company?

2-3 working days.