Meaning & use
shelf company
Last updated
Meanings
nouncountablebusinesslaw
A company that has been registered but never traded, kept ready to be sold and used quickly.
Grammar: Countable: 'a shelf company', 'several shelf companies'. The plural is 'shelf companies'.
Patterns
- buy a shelf company
- set up a shelf company
- a shelf company for sale
He bought a shelf company so he could start trading immediately.
Accountants sometimes keep a shelf company ready for clients who need one fast.
A shelf company already has a registration number and a bank account.
nouncountablebusinesslawformal
Such a company used to take over another business or to win a contract without delay.
Grammar: Used in legal and financial writing, often in the phrase 'by way of a shelf company'.
Patterns
- use a shelf company to do something
- acquire a business through a shelf company
The investor used a shelf company to acquire the failing factory.
Using a shelf company can save weeks of paperwork when bidding for a contract.
The deal was completed through a shelf company registered in London.
Word forms
| plural | shelf companies |
|---|
Common combinations
- buy a shelf company
- They decided to buy a shelf company rather than register a new one.
- a shelf company for sale
- Several shelf companies for sale were listed online.
- set up a shelf company
- The lawyer set up a shelf company for the new venture.
- an off-the-shelf company
- An off-the-shelf company can be transferred to a buyer in days.
Synonyms and how they differ
- shell company
- Similar but often negative: a shell company may exist only on paper and be used to hide money, while a shelf company is a legitimate ready-made business.
- ready-made company
- A plain-English alternative used in business writing; less formal than 'shelf company'.
- dormant company
- A company that is not trading but may not be for sale; a shelf company is specifically kept to be sold.
Word family
- off-the-shelf adjective
- Ready to use immediately, as of a product or a company.
- shelf noun
- A flat board for keeping things on; here it suggests something kept in storage.
Commonly confused: shelf company or shell company?
shelf company vs shell company
A shell company is often an empty legal entity linked to tax avoidance or fraud; a shelf company is a registered business waiting to be sold and used normally.
Practice
What is a shelf company?
Choose one answer.
A shelf company is registered but inactive, kept 'on the shelf' until someone buys it. Option 1 confuses the word 'shelf' with furniture, option 3 describes a closed business, and option 4 describes something that is not properly registered.
Make it your own
Write a sentence using “shelf company”, then check it and compare it with the examples above.