Setting up a business in a foreign country can be a daunting task, but Australia, with its robust economy and business-friendly environment, offers numerous opportunities for entrepreneurs and investors. One of the efficient ways to establish a business presence in Australia is by purchasing a shelf company.
This article aims to provide a thorough grasp of shelf companies, including, their benefits, the process of acquiring one, and why setting up a shelf company in Australia is a great decision for you.
What is a Shelf Company in Australia?
A shelf company in Australia is a pre-registered company that has never engaged in any commercial operations or held any assets or liabilities. These businesses are “put on the shelf” by accountants, solicitors, or company formation agents after they are incorporated, ready to be purchased by investors or business owners who need to swiftly establish a business presence in Australia.
When you purchase a shelf company, you acquire a legal entity that has already gone through the incorporation process, including obtaining a registered business name, Australian Company Number (ACN), and Tax File Number (TFN). This enables you to begin running your business right away and avoid the lengthy procedure of creating a new corporation.
Benefits of Buying a Shelf Company in Australia
Immediate business setup
You can begin doing business in Australia using a shelf company instead of waiting for the company registration procedure to be finished.
Enhanced credibility
Shelf companies can give prospective customers, partners, and investors the impression that they are stable and credible, particularly if they have been incorporated for a number of years, or have “aged” status.
Access to financing
Companies having a track record, which can be attained by buying an older shelf firm, may be more appealing to banks and other financial organizations for loans or investments.
Ability to bid on contracts
A minimum operating history may be required by some countries for companies to be considered for specific contracts or tenders. An aged shelf company can help you meet these requirements.
How to Buy a Shelf Company in Australia?
Choose a reputable provider
Select a company formation agent, solicitor, or accountant who specializes in offering shelf corporations in Australia.
OnDemand International’s professionals are here to help you in acquiring a shelf company in Australia.
Specify your requirements
Provide the provider with your desired company name, registered office address, and other relevant details.
Review the Company’s History
Ensure the shelf company has no outstanding liabilities, debts, or legal issues. A careful examination of the business’s documentation is necessary to avoid inheriting any unwanted problems.
Finalize the transfer procedure
The provider will transfer the shelf company’s shares to you and assist with the resignation of the existing directors, who will be replaced by your nominated directors.
Change the company details
After the purchase, you will be required to update the company’s details, and information after the purchase, including the registered office address, shareholders, directors, and business activities, if necessary.
Notify the authorities
You must inform the Australian Securities and Investments Commission (ASIC) of any changes made to the shelf company within 28 days of the modifications
When Might a Shelf Company Be Right for You?
A shelf company may be an appropriate choice if you:
- You need to launch your company operations in Australia as soon as possible.
- Require a business with a track record in order to improve credibility and obtain financing.
- You want to bid on contracts that require a minimum operating history.
- Prefer to avoid the administrative hassle of forming a new firm.
What to Look for When Buying a Shelf Company in Australia?
While shelf companies offer advantages, proceed with caution. Here’s what to consider:
- Provider Reputation: Choose a provider with a proven track record and a strong understanding of ASIC regulations.
- Company History: Verify that the shelf firm is completely debt-free and has no pending legal matters.
- Compliance: Confirm that the business has filed the most recent annual reports and complies properly with ASIC laws.
Conclusion
Purchasing a shelf company in Australia might be a wise choice for investors and business owners aiming to establish a business presence quickly and efficiently. It’s a desirable option because of the advantages of instant operational capacity, increased credibility, easier compliance, and access to business prospects.
If you’re considering setting up your business in Australia, OnDemand International can help you at every stage. From acquiring a shelf company to providing additional business registration services like virtual office space and bank account setup, OnDemand International is your trusted partner. Get in touch with OnDemand International today and simplify your business setup in Australia.