How to Choose the Appropriate Age for a Shelf Company

When buying a shelf company, it is essential to think about the appropriate period. The age of a shelf company determines how much credit you qualify for. Shelf companies refer to different kinds of legal entities. They can be offshore, international or domestic corporations. The companies have been on the shelf after being incorporated.

Choosing the right age is essential if you are looking to access funds from financial institutions. You should choose an institution that is suitable for your needs.

Clients in the construction industry always look for a company that has been in existence for many years. If you have been in the construction industry for ten years, then it would be appropriate to get a shelf company that is ten years old. Some business contracts require you to have a business that is two years old. Even though age is not the only factor that determines whether you get the deal or not, but it is just one of them. You need to qualify on many fronts to get the contract.

When it comes to building business credit, the older the firm, and the better. Other factors like creditworthiness and profitability can also affect your credit building efforts. The perceptions of potential lenders and customers are also one of the reasons why you need to have an aged shelf corporation. So, how old does your business have to be to convince a financial institution that the company is stable? The age of a business is vital to a lender and customer.

The corporation is referred to as a ‘person’ in law- an artificial person. The business is separate from its owners. A company can remain even when the original owners have passed away.

Cost consideration

The price of a shelf company increases with its age. An older company needs more maintenance. Also, the earlier the company, the more statutory fees have been paid for it. The older companies are also rare. Given that the cost increases with age, you should buy a company as old you need. You can get one-year companies for about $1500.


Your needs will determine the age of the company you will buy. If you are only looking to save on the time it takes to fill out all the paperwork, then you can opt to hire a company that is even weeks old.

Funding requirements

How much funding you get will depend on the age of your business. If the company has been in existence for say ten years, you stand to gain a higher amount. So, you have to put that into consideration when choosing the age of the shelf business.

Choosing the appropriate age in the crowded shelf corporations for sale market is essential. You do not want to go with a very young company when you are looking to access credit facilities. So, you have to look for an aged company to reap the benefits that come with it. An old business also gives you credibility and increases your chances of getting contracts.

Justin Author