What is a shell company?

"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.

Examples of corporate shells:

1. In the market, some company secretaries, business service companies, law firms, etc. Set up many shell companies with popular names in advance and sell them to future guests. For example, some foreign businessmen need to set up a local company to do business here, but they don't know how to apply. The immediate solution is to buy a shell company and put it into business.

Second, property investors hold personal investment properties in the name of shell companies for tax purposes, so as to reduce stamp duty and enjoy more tax deduction.

Shell company is a neutral name, depending on the intention of the holder. For example, it is used to deceive people into buying shares, saying that there is big business, and the result is "zero". Or start a shell company to recruit, charge job seekers, close down and cheat money. Such an "empty shell" is not the crime of the company.