Home / Readymade or Shelf Companies In India
Updated on 15 Jul 2020 9.00 AM IST | 4 min read
What Is Readymade or Shelf Company?
A readymade or shelf companies are dormant/inactive companies that were registered/incorporated in past years but never ever become active. These are those companies which never ever traded or done any business transaction after the incorporation of the company and the reason behind non-commencing of business can be –
- Non-availability of funds
- Reduction in demand of products
- Non-availability of manpower
- Relocation of key directors
These companies are free from defects, judgements, liens and any other liabilities. These companies are already registered and are available for immediate purchase. In today’s world of fast growing market, it is difficult to wait for the registration of a company to start a new business whereas purchasing an old registered company fulfills all your legal requirements in advance. A readymade or a shelf company already contains incorporation certificate, company seal and other documents required by law.
Investors now days acquiring readymade companies rather than entering into difficult procedure of incorporating a new company and the prime reason behind this is to save time.In case you are planning to buy a shelf company, you need to sign a share transfer agreement and few documents and you are done whereas if you are planning to establish a new company, it takes lot of your time from registration to finalization of documents.
What Is Included In Our Package?
Documents to be handover by the inactive company
The following documents should be handover by the inactive company -
Original incorporation certificate
Certified 10 copies of MOA & AOA
Original PAN card
Director identification number of both the directors
Share transfer agreement
In which states shelf companies are available with us?
Shelf companies are available in the following states –
In which Industries/sectors shelf companies are available with us?
Industries/sectors in which the shelf companies are available for takeover are as follows –
- General trading
- Infrastructure development
- Software/information technology
- Engineering consultancy
- Multi ventures
- Section 8 company
- Trade house
Procedure to purchase old-shelf previously registered companies
The procedure to purchase old-shelf registered companies is as follows –
Obtain the director identification number for all the directors
Obtain the digital signature of new director or directors
Sign the share transfer agreement as you are taking over the company from the previous owner.
You may have to fill MCA form. In case, if the investor wants to change the name of the company (done in most of the cases), we need to change the bank details too. Therefore, this change must be registered with Registrar of companies. In order to register this change, it is mandatory to fill MCA form.
In the fifth step, nominee director resignation will be accepted.
In the sixth step, you need to draft the necessary legal documents
In the last step, you will make the changes in the bank account as per your company name and address.
Advantages of purchasing a shelf company
- It is the fastest way to get your own company
- It is the fastest way to start your own business
- It is the fastest way to enter into rent, salary or any other agreement.
- It gives you opportunity to bid on contracts
- It gives you access to investment capital
- It gives easier access to corporate credit.
- You will get an already open bank account and a tax registration number.
- It enhances the confidence of the investor or consumer in the long run.