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How to Purchase a Shelf Company In Australia?: Process & Benefits Explained

Interested in buying a shelf company in Australia? Learn about the advantages and the step-by-step process of acquiring a shelf company in Australia. Contact Ondemand International for expert guidance on acquiring shelf companies.

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    Table of Contents

    Introduction

    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:

    1. You need to launch your company operations in Australia as soon as possible.
    2. Require a business with a track record in order to improve credibility and obtain financing.
    3. You want to bid on contracts that require a minimum operating history.
    4. 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.

    FAQ’s

    Yes, shelf companies are perfectly legal in Australia as long as they are acquired from a reputable provider and comply with ASIC regulations.

    The primary benefit of purchasing an Australian shelf company is the ability to start your business operations immediately, as the company has already gone through the incorporation process.

    Yes, it is possible to modify the name of a shelf company after purchasing it. However, you will need to inform ASIC of the change within 28 days of the modification.

    Registering a new company may be more cost-effective, as you only need to pay the setup costs. When purchasing a shelf company, you need to pay for both the company and the costs associated with transferring it to you.