A shelf company, also known as a read-made company, is commonly used in connection with corporate transactions. Shelf companies are founded by service providers, but there is no operational activity in these companies. Instead, once trained, they are nurtured and kept on the shelf until an opportunity to sell them arises. In this case, service providers can guarantee that no operational activity has taken place in the company and therefore there is no debt or other liability that could be transferred to the new owner.

Meanwhile, there are also such companies that were formed some time ago with the general aim of operating and making a profit, but have ceased operations for some reason. While normally companies would cease to exist, service providers buy the previously active companies and keep them until a potential investor shows up. Because these companies have had a specific operating activity, it is important to ensure that they have no debt or other liabilities. As a rule, quality service providers give their guarantee that you are acquiring a debt-free company. Still, it would make sense to do your own due diligence to be absolutely sure you're buying a clean company.

Business in Malta
If you are looking for the right place to buy a shelf company and start a business, Malta might just be the place for you. Malta is a well-developed Mediterranean country between Europe and Africa. In addition to the advantageous geographic location and pleasant weather conditions all year round, Malta manages to attract foreign investors due to its business environment and tax system. Thanks to Malta's tax system, it is considered a tax haven.

Malta's tax system offers numerous advantages to companies. For example, Malta has signed double tax treaties with over 70 countries, ensuring that companies do not have to pay tax in their country of residence on profits generated in Malta. Even if a holding company has to pay the full corporate tax rate of 35%, the amount payable is usually greatly reduced - shareholders can claim a refund of up to 6/7ths of the dividend tax.

Shelf company in Malta
There are several advantages to acquiring a shelf company rather than forming a new one. The main benefit is the ability to run a business that already has some history. Very often, newly formed companies are not considered serious, so potential partners and customers might decide to give preference to older companies. For this reason, the price of a shelf company is determined by its age: Older the company - higher the price.

Another benefit of acquiring a shelf company is generally the relatively shorter process time compared to forming a new company. Meanwhile, this advantage does not work as well in Malta as in other countries. This is due to the short incorporation time of companies in Malta - it can take as little as 24 hours to incorporate a new company (the same time it takes to acquire a shelf company).

Whilst shelf companies tend to take a back seat in Malta, you can acquire companies in a variety of legal forms - from partnerships to limited liability companies and corporations. Maltese companies can be managed both from Malta and from abroad.