A shelf company is a corporation that has been registered as per the regulations in force and despite its registration, it has never been used for doing business. Investors can buy a shelf company in Panama as an alternative to incorporating a new legal entity, a process that will imply different steps and will have different costs.
The shelf corporation is often called an aged company due to the simple fact that it has acquired seniority by having been incorporated a few years prior to its acquisition. However, investors do not always purchase companies that have been registered many years before. For cost-related reasons or other motives, entrepreneurs may also choose to purchase a company that has been recently formed in Panama.
The shelf company has a number of advantages, as presented in this article by our team of Panama offshore company formation agents
. Despite the fact that the general registration process is a fast one, and investors may open a new company within several days, some entrepreneurs will still prefer to buy a company that already has all of its documents in order. They will simply sign the transfer papers and will not have to be concerned with the general Panama incorporation process.
What are the advantages of the shelf company?
Below, our team of Panama company formation agents lists the main advantages of the ready-made company:
• Longevity: a shelf company has longevity because in most cases the corporation was incorporated sometime before the purchase; this can provide a better image for customers and business partners.
• Investment capital: a company that has been on the market for some time can also benefit from easier access to investment capital and corporate credit.
• Simplified procedures: the buyer will not need to spend time choosing the name and preparing the documents; however, any subsequent desired changes can be performed after the purchase.
• Banking: as in the case of business relationships, banking may be easier for a company that has been incorporated for some time.
• Lack of liabilities: a company that is founded and not used for business purposes has not accumulated any bad debt or liabilities, another important advantage.
These are just some of the reasons why foreign investors in Panama choose to buy a shelf company instead of engaging in the company formation process. Of course, investors may find that some business fields are more favorable for the use of the shelf corporation, compared to others, and they may decide to purchase an already existing company only when this suits their needs.
Because the process related to Panama incorporation
is facile and fast, buying a shelf company is not in all cases faster than incorporating a new legal entity. While this may be the case in other jurisdictions where the company formation process lasts longer, the fact that in Panama it can be easily accomplished in a couple of days makes it as fast to start a new business as it is to purchase an already existing one. Nevertheless, investors will still enjoy the other aforementioned advantages for the shelf company, especially longevity, when purchasing an existing business.
Investors who wish to open a company in Panama and are unsure of whether or not the shelf company is suitable to their needs can reach out to our agents. The final decision will depend on a number of factors, for example, the objective of the company and the available budget, among others.
How can investors buy a shelf company in Panama?
Entrepreneurs who decide that they do not wish to open a company in Panama
and instead purchase an existing one can easily do so with the help of our agents. Due diligence is a very important step during the company purchase procedure and it ensures that the targeted business is indeed a duly registered one, that has not accumulated any debts during the course of its existence.
Our team will help investors by providing adequate information about the company that is to be purchased following the needed verifications. Moreover, investors can easily buy a shelf company when aided by one of our agents as we are able to prepare and handle the ownership transfer procedures.
According to the Public Registry
, the statistics for the types of registered companies are the following:
- 10,476 anonymous companies;
- 149 civil companies;
- 83 foreign companies;
- 131 limited liability companies.
Investors may choose to purchase a shelf company in one of these business forms, as available for purchase and as per their business needs.
Contact our Panama company formation agents
for complete information about the shelf company and details on how you can purchase a ready-made legal entity. Alternatively, our team can also provide full assistance for opening a new company.