1, debt risk
A "shell company" may have operated and may bear a large amount of foreign debts, and it must be responsible for these debts after investment and purchase.
2. Legal risks
There may be illegal acts in "shell companies", especially the act of making false capital contributions or withdrawing capital contributions after registering the company.
3. Employee salary and welfare risks
"Shell companies" may be in arrears with a large number of employees' wages and benefits.
4. Tax burden risk
Shell companies usually have the following characteristics:
1, never appointed a director;
2 official seal, stock certificate and other documents required by law have been completed;
3. Never started a business.
Therefore, the buyer can use the required documents immediately without worrying about hidden risks.
"Shell companies" are also called ready-made companies. It was originally established as a corporate legal form according to the British Company Law. It is a limited company established by the promoters according to the laws of Hong Kong or Britain, but it has not appointed the first director and no investors have subscribed for shares, so there will be no business, creditor's rights and debts. When the company is needed, investors only need to hand over the directors and shareholders to the company secretary, who will make relevant documents. It usually takes a few hours to finish.
As the legal representative of a shell company, the legal responsibilities include: the criminal responsibility of being suspected of contract fraud after signing a contract with others; If shell companies evade capital contribution, they may also be suspected of evading capital contribution.
Legal basis:
Company Law of the People's Republic of China
Article 200 Where the promoters and shareholders of a company withdraw their capital contribution after the establishment of the company, the company registration authority shall order them to make corrections and impose a fine of more than 5% 15% of the withdrawn capital contribution.
Article 201 Where a company, in violation of the provisions of this Law, sets up accounting books in addition to the statutory accounting books, the financial department of the people's government at or above the county level shall order it to make corrections and impose a fine of not less than 50,000 yuan but not more than 500,000 yuan.