| When you want to start a company in the UK, | | | | operational. |
| you have two choices. You can either form a | | | | After the advent of facilities like same-day |
| brand new company or you may choose to buy | | | | registration and online company formation, the |
| an off the shelf company. An off the shelf | | | | perceived benefits of off the shelf companies in |
| company in the UK refers to a company that has | | | | the UK are limited. Only businesses that need a |
| been incorporated with the Companies House with | | | | company that has been incorporated in the |
| certain company secretaries, directors and other | | | | distant past stand to gain anything substantial. |
| officials. The company would have been | | | | However, officials scrutinizing the forms can easily |
| registered too. However, it would be a virgin | | | | make out that the company has been dormant |
| company in the sense, it would never have | | | | for a long time. That is the reason why most off |
| traded in any business activity. | | | | the shelf companies are formed in the recent |
| Some people prefer to form a brand new | | | | past. |
| company because they are in charge of every | | | | Another risk factor associated with off the shelf |
| facet of the new company from the name of | | | | company in the UK is the passing on of history. |
| the company to the selection of officials etc. | | | | When you buy an off the shelf company, you are |
| However, when you buy an off the shelf | | | | effectively inheriting the past history and the |
| company in the UK, it would already have a | | | | designated officials of the company. Since the |
| business structure and name. These would have | | | | company has never traded before, the risks |
| to be changed to suit the proposed structure of | | | | associated are very limited, almost nonexistent. |
| the new company. | | | | But prospective buyers would do well to keep this |
| Off the shelf companies in the UK are very useful | | | | factor in mind at the time of purchase. |
| for businesses that need a legal presence in the | | | | Many company formation agents offer off the |
| UK without any delay. They were particularly | | | | shelf companies for ready business in the UK. |
| beneficial before the advent of online processing. | | | | These companies need to be completely |
| Even today, by buying an off the shelf company, | | | | Companies House compliant. It is important that |
| business owners can avoid the process of filling | | | | you carefully scrutinize the papers to verify that |
| forms and submitting the same to the Companies | | | | everything is available and up to date before you |
| House. Thus, there are no delays or expenses | | | | purchase an off the shelf company. A buyer has |
| caused by such processes. However, the new | | | | the flexibility to buy an off the shelf company and |
| company will have to change existing company | | | | rename it, if they so wish. |
| secretaries and directors before it can be | | | | |