A shelf company is a company established by a service provider with the purpose to resell it immediately after creation. For many investors opening a shelf company in Estonia is a convenient choice, as the business is already registered and, by a power of attorney, the new owner can immediately begin operations.
Ready-made companies or shelf companies in Estonia are already recorded and are available for immediate purchase, but this type of companies have not made any transactions, there are no contractual relations or obligations and maybe the most important aspect of a shelf company is that it has not appointed the directors or shareholders.
Investors willing to open a shelf company in Estonia must also know that this type of company does not have an opened bank account and a company seal /stamp, which proves that the company has not been used in the past and there are no activities in the past or debts. Our Estonian company formation representatives can provide more details on this matter.
For opening a shelf company in Estonia, the new owner only needs to provide an ID and can immediately begin to use the shelf company, without any worry about hidden risks. The Estonian shelf company can be opened and ready to function in just one day, as this type of company has a dormant state, waiting for new owners, who are always the first owners.
The new owner will need a power of attorney for the official representation before competent authorities, such as bank institutions, Tax and Customs Administration and in order to register for economic activities. The power of attorney is needed until the new board is recorded and the company is entered in the Commercial Register, procedure which usually takes up to five working days.
Most investors usually ask whether opening a shelf company in Estonia is a risky option. Well, when it can be proven that the company hasn’t undertaken any activity in the past and you are the first owner, you don’t need to worry about. As a matter of fact, opening a shelf company is a common action in most countries. But it is very important to check, before opening a shelf company in Estonia, that the company doesn’t have nominated directors and shareholders.
In this case, there is no possibility that the company has been involved in any activity, and therefore there is no potential risk. Also, the company can’t have hidden debts or commercial disputes as long as it has never appointed a director and a shareholder and therefore the company has never started its activity, there are no stamp and no bank accounts, there were no purchases of any active or passive, no debt and any contracts or unfulfilled promises.
It is strongly recommended to buy a shelf company from a reliable source and most companies that sell shelf companies in Estonia usually provide a wide range of extra services, for example drawing up the foundation documents and articles of association, company registration, consultancy for opening a bank account, notary fees and stamp duties and others.
Our company formation experts in Estonia can provide you customized information and guidance if you are interested in opening a shelf company in Estonia; please contact us.