The Benefits of Shelf Companies in Switzerland

With the modern development of different services which specialize in giving company formation assistance a new economic institution can be incorporated within several days. This is beneficial for investors as they can fully rely on other people to create the conditions for a business to start up. The modern structural elements of the Swiss economy are unique and do not create any unfavourable implications for clients at the initial stage of their business activity. This may be suitable for some businessmen, but if they want their company to gain a prestigious name, reinforced by a high-status location legal address, the best solution is to buy a ready-made or vintage company. The company's worth rises sharply for prospective clients or investors when it has already traded on the market. Sometimes investors seek ways to obtain credit for their activity and extension of assets. They are more likely to achieve this when they own a trustworthy company with a prestigious name.

Swiss off-the-shelf companies are registered structures; that is why they are regarded as accessible for use after they have been acquired. The process of acquisition is seen as different from regular company registration. It takes less time to purchase a company than to go through the process of incorporation. Switzerland has developed a policy of promoting the interests of foreign residents in its economy. The country's taxation policy creates benefits for the owners of some ready-made companies, although this depends on the canton where the shelf company is located. Each canton in Switzerland has its own position on economic issues. The canton of Zug is one of the most favorable regions where shelf companies are sold.

A company might have been founded many years ago, but can still offer a business with no debts and liabilities. There are other advantages in obtaining a Swiss company with preregistered offices:

• Urgency of acquisition process
• Quick transfer procedure
• No need to open a bank account
• The company is ready to function from the moment of its transfer to the new owner

The company you are going to purchase can be subject to some variations, but it should have legal status and be listed in the Commercial Register of Switzerland. Every decision involving changes to the articles of association should be discussed at the meeting of managers. It should take place before the share transfer procedure is accomplished.

Many companies in Switzerland sell firms, ready for use for foreign investors. They may or may not have had a period of activity. That is why they are subdivided into two categories:

• Vintage
• Ready-made

Vintage shelf companies in Switzerland have a reputation because their name has been used in transactions in the past, but their activity stopped for various reasons. Sellers of such companies should guarantee that a vintage company has no liabilities and indebtedness.

Ready-made companies are ready to operate on the market, despite the fact that they have no history. They may be taken 'from the shelf' and used by the future owner.