Buy a Shelf Company in India
Updated on Tuesday 21st November 2017
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In India, a shelf company refers to a legal entity that has already been incorporated under the Commercial Law and which does not perform any commercial activities. Purchasing a shelf company can be an attractive way of starting a company in India, as the time frame in which the businessman can start his commercial operations is much lower compared to the regular registration. As a general rule, a company can be incorporated in India in a period of minimum 16 weeks, while in the case of a shelf company, the purchase procedures can be completed in 10 days. Our team of specialists in company formation in India can offer assistance on the main procedures that have to be completed when buying a ready-made company.
Types of shelf companies in India
Foreign businessmen who want to open a company in India have two main options related to the ready-made companies.
The first one is to purchase a new shelf company, which designates a legal entity that has been incorporated in India, but has never conducted business activities.
The other option would be to purchase an old shelf company. This type of ready-made company is different from the first one in the sense that its founders have conducted business activities.
If the investors will opt for the second option, it is necessary to conduct corporate due diligence procedures, through which the buyers will verify if the legal entity has any hidden flaws and, in this sense, it is advisable to receive legal assistance from our team of agents in company registration in India.
The advantages of a shelf company in India
One of the main advantages of the ready-made company in India is that the legal entity has all the incorporation documents. When purchasing the ready-made company, the investors will receive the Certificate of Incorporation, the company’s seal and other relevant documents. The buying procedure differs depending on the type of shelf company preferred by the investors (old or new). In the case of an old shelf company, it is necessary to appoint new directors and to obtain the resignation documents of the previous directors, to sign the share transfer agreement and other specific documents.
Investors interested in registering a company in India are invited to contact our team of consultants for further information on the shelf company.