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.
Extended data:
Because it takes time for a company to be registered and established, some people may need to register and establish a company urgently, and then sign a contract or handle other business in the name of the company. Therefore, professional consulting services usually register a large number of companies in advance to purchase. Such a company is both a shell company and a ready-made company.
Shell companies usually have the following characteristics: they have never appointed directors, prepared official seals, stock certificates and other documents required by law, and never conducted business. Therefore, buyers can use the required documents immediately without worrying about hidden risks.
The use of shell companies is very common in most countries or regions, such as Hong Kong, Singapore, Britain, the United States, Cayman Islands, etc., and there is no risk in most cases. Usually, a ready-made company will not appoint any directors before the sale, and the company has no right to conduct business, so there is no potential risk.