About Shelf Companies
What you should know…
A shelf company is a registered company that is inactive, having never traded or conducted business, holding no assets or liabilities, that is ready and available for purchase by those who wish to avoid the delay involved in incorporating a new company themselves. In Zimbabwe, shelf companies are registered as Private Limited Companies; the most popular company structure in Zimbabwe. This company structure is popular as the company exists as a separate legal entity from the individual owner.
This means the owners have limited financial liability, so their personal finances are protected if the company encounters financial problems.
Limited liability is a major benefit over the sole trader structure whereby the sole trader is liable for business debt. This page provides all of the need-to-know information about shelf companies.
Benefits of a Shelf Company
- Getting new suppliers and contracts – An aged shelf company is already registered with the Companies and Intellectual Property (Previously Deeds, Companies and Intellectual Property; DCIP), and hence, it gives an image of longevity to your company. In other words, when you start your business, it often becomes difficult to secure the contracts because your company is relatively new. But, buying a shelf company to begin with business can help you gain instant trust from the suppliers because it promotes a more professional image.
- Easier approval of business banking – Running a business smoothly is equally vital as registering the company, and hence, business banking is an essential part of running the business. You are required to open a business bank account to build a professional image. It becomes a lot easier to approach any bank for credit cards and business account with the shelf company. It is because of the reason that banks are more inclined towards the older company to make investments.
- Boost up the client confidence – The most critical requirement for any business is to build the confidence of clients in the business because confidence and trust indeed play a crucial role in the success of the company. Research has shown that owning a shelf company can drastically boost the client’s confidence in the business because a shelf company gives an impression of longevity.
- Save your time – Shelf companies can potentially save a lot of your time because you aren’t required to register a company from scratch. When you start a business, time is indeed an essential factor that decides your business’s success. Buying a shelf company can drastically save time because the company is pre-registered. Hence, you can start your business the very day you buy the aged company.
- Bidding on government tendors – There are many government tendors that require a specific time in business for a company to bid on them, and buying a shelf company would provide your business with the necessary time in business. Hence, a shelf company can allow you to bid on government contracts very quickly.
Buying a Shelf Company
Buying a shelf company in Zimbabwe with Companies Made Easy is incredibly simple.
Here is what you need to know before buying a shelf company:
- All Shelf Companies are registered as Private Limited Companies and are legally registered with the Companies and Intellectual Property (former Deeds, Companies and Intellectual Property; DCIP), the official Registrar of Companies in Zimbabwe.
- It has a unique company name that has been approval and registered at the Companies and Intellectual Property.
- You must have a physical, postal and email address – these are the official addresses of the company which will appear on your CR 5. The physical address must be a full physical address (not a P.O. Box Number) and a Zimbabbwean address.
- You require a minimum of one shareholder and atleast two directors to buy a shelf company. The same people can hold both positions.
- It has objectives included to describe the business activities that your company will engage in.
- On purchasing a shelf company, you will receive the following dosuments a memorandum of association to state the business objectives, names of the first shareholders (known as the ‘subscribers’) and their intention to form the company and take at least one share. You will also receive a governing document called the articles of association adopted during the company incorporation process – this outlines the rules and regulation of the company. In addition, you will receive a CR 5 stating the company addresses, a CR 6 stating the company directors, secretary and principal officer and share certificates to prove ownership in the company.
Are you ready to buy a Shelf Company?
Frequently asked questions
What is a shelf company?
A shelf company is a registered company that is inactive, having never traded or conducted business, holding no assets or liabilities, that is ready and available for purchase by those who wish to avoid the delay involved in incorporating a new company themselves.
Do shelf companies come with bank acccounts or tax clearance?
No. The shelf companies do not come with a bank account or a tax clearance because once we acquire any of the 2 we are already being invloved in economic activities with the company hence it seizes to be a shelf company. Our shelf companies are just registered and have never done any activity.
What are the advantages of this type of company?
The most significant benefit of registering a Private Limited Company in Zimbabwe is limited liability for company shareholders. Their obligation to pay for business debts is restricted to the nominal value of their shares. This means their personal assets – property, car, finances etc. – are secure and cannot be used if the company becomes insolvent. Sole trader businesses do not have this benefit, and the owner is personally responsible for any business debts.
The other benefits of this type of business structure are enhanced professional status, and the ability to effectively plan your company’s finances to take advantage of any favourable tax rules
How do I buy a shelf company in Zimbabwe?
Companies Made Easy offers an easy shelf company buying procedure – simply choose a shelf company of your choice from our shelflist then make payment and receive your documents instantly. We will prepare all the neccessary documantation and your company and the whole procedure will be complete within 3 working days.
Are you ready to buy a shelf company?
Companies Made Easy (Private) Limited. Registered in Zimbabwe at Pockets Building, 50 Jason Moyo, 2nd Floor, Suite 208 & 209, Harare, Zimbabwe.
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Companies Made Easy (Private) Limited is a licensed business consultant with the Deeds, Companies and Intellectual Property (DCIP) Zimbabwe's official Registrar of Companies which licenses company registration agents in Zimbabwe to carry on company regstration and/or corporate secretarial services with their office on behalf of clients.
Our DCIP license gives our customers confident that they are dealing with a reputable, qualified and regulated consultant.
Companies Made Easy is a member of ZACRA, the association of company registration agents in Zimbabwe with the purpose of encouraging high standards amongst agents and acting as an open forum for professionals working in the industry.
ZACRA is a recognised association for company registration and ZACRA works closely with government departments such as the Companies Registry.
Our ZACRA membership is an endorsement of the quality of service we provide and gives our customers the confidence that they are dealing with an agent they can trust.