Shelf Company in Canada: Procedure & Benefits Explained
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Are you an international investor with aspirations to expand your business horizons in the Canadian market? Your quest for a swift entry into the dynamic Canadian business landscape may lead you to explore the numerous forms of businesses that can be established in Canada. One of the most easiest way to enter the Canada market is through acquiring a shelf company in Canada. A shelf company is an organization that is originally registered but does not have any records of conducting business, and as a result, does not have any associated assets or liabilities.
This article serves as your comprehensive guide to the benefits and intricacies of purchasing a shelf company in Canada, designed to ensure your successful venture into this lucrative market.
What is a Canadian Shelf Company?
Canadian shelf companies are corporations that have been legally incorporated but have never been actively used for any business operations. They owe their name to the fact that they figuratively sit ‘on the shelf,’ patiently waiting for their moment to shine.
At OnDemand International, we specialize in creating and offering these shelf corporations. Each shelf corporation we provide is meticulously filed for a specific purpose – to be at your disposal when you need it.
Why Purchase a Canadian Shelf Company?
Now that we understand what shelf corporations are, let’s explore why you might consider purchasing one. The benefits are substantial and can significantly enhance your business journey:
Establishing a Corporate History
One of the primary reasons to consider a shelf company is to establish a history for your corporation. Having a track record of existence can provide a solid foundation and instil confidence in potential partners, clients, and investors.
Streamlining Corporate Credit and Leases
As your company ages, obtaining corporate credit cards and leases becomes more straightforward. Lenders and lessors are typically more willing to extend favourable terms to businesses with a solid history, making your operations smoother and more cost-effective.
Meeting Contractual Requirements
In certain cases, bidding on contracts may require your company to have a certain age or history. A shelf company, with its pre-existing incorporation date, can fulfil these requirements and open doors to a broader range of business opportunities.
Facilitating Access to Bank Loans
When you’re seeking financial support in the form of bank loans, a well-established corporate history can work in your favour. Lenders often look more favourably upon businesses with a proven track record, making it easier to secure the funds you need.
Enhancing Corporate Image
Clients and partners often find comfort in dealing with well-established companies, as it conveys stability, reliability, and experience.
Procedure for Acquiring a Shelf Company in Canada
The process of purchasing a shelf company in Canada is straightforward and suitable for both individuals and legal entities. Typically, sole investors who seek a swift entry into the Canadian market opt for this method. The buying method includes a contract between the buyer and seller that must be notarized and approved by both parties. This agreement initiates the transfer of shares, making the buyer an official shareholder in the Canadian company. However, keep in mind that this process may involve specific changes that need to be documented with the Trade Register.
Application of a Shelf Company in Canada
Once the necessary post-purchase requirements are fulfilled, a Canadian shelf corporation offers diversity in its applications. In most cases, entrepreneurs acquire ready-made companies to initiate trading activities or provide services across various industries. It’s also a popular choice for those seeking financing from Canadian banks, where a strong company reputation and a history of operations are essential.
Regardless of your intended use, our Canadian company formation representatives are available to assist you in navigating this strategic investment.
What to Think About When Purchasing a Shelf Company in Canada?
Before embarking on the purchase of a shelf company in Canada, investors should conduct a comprehensive market analysis to determine the most suitable entity and area of business activities. This decision should be well-informed and aligned with your broader business strategy.
Our team of company formation experts in Canada can clarify the rules and conditions involved with shelf company purchasing to guarantee a seamless transaction. If your journey into Canadian business involves complex documentation and licensing requirements, our advisors stand ready to offer comprehensive guidance.
Shelf corporations, offered by OnDemand International, are a powerful tool in your corporate arsenal. Whether you need to establish a history, secure financing, meet contractual requirements, streamline credit and leases, or enhance your corporate image, a shelf company can be the solution you’re looking for. With our meticulous preparation and commitment to providing clear, debt-free corporations, OnDemand International is your trusted partner in unlocking the potential of your business. Reach out to us today and discover the advantages of having a shelf company at your disposal.
No, foreigners are welcome to buy shelf firms.
Shelf corporations are available in all Canadian provinces and can be purchased through local company formation agencies.
Once purchased, you have the option to change the company's statutory documents, change directors, and change the business name.
The cost of a Canadian shelf company varies depending on its age, therefore it is critical to evaluate your individual needs.