I’m starting a new business and have come across something called a “shelf corporation”. What is a shelf corporation?
Allan Madan, CA
A ‘shelf corporation’ is an incorporated entity that either:
- Never carried on a business and never owned any assets;
- Carried on a business and owned assets in the past, but is now inactive without any assets.
Shelf corporations that carried on a business in the past for a number of years, and have a good credit history are of great interest to individuals that want to start a business. This is because banks and other financial institutions usually only make loans to established corporations with a favorable credit rating.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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