What is a Shell Company?

 

What is a Shell Company?

A Shell company is one that primarily or solely exits on paper only. This means that there will be no significant assets linked to the shell company and it will deliver no goods, services or other business functions to generate revenue for itself.

It will have no functional physical office and if it has a registered address this will most likely be a mailbox or an address that is shared by up to hundreds of other shell companies.

Primarily shell companies are used to move or hold assets in a manor where it is not immediately obvious who the ultimate beneficiary is. Shell companies can be set up by a third party, often a lawyer or accountant, to further obscure this; and a shell company is able to have any number of subsidiary shell companies under it.

Shell corporations can exist in any country but are very popular in those that are considered tax havens or have low regulatory standards; such as: The Cayman Islands, British Virgin Islands, Bermuda or The Channel Islands are examples of high risk companies.

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