Shell companies can give some enterprises a facade. We often see some so-called group companies and holding companies, which all sound very tall. They think the enterprise is very powerful, and there are many holding companies under the company name. The company's system is very huge. However, behind these big enterprises, they are not as powerful as we thought. After careful investigation, you will find that many companies under those names are shell companies. These shell companies have no actual business and no employees, and their financial data are basically empty. The only function is to support this big enterprise. In order to make a big and strong impression on the outside world, many large enterprises achieve this goal by setting up a number of shell companies.
Shell companies failed to meet the capital needs of enterprises. In order to obtain financial financing, many enterprises will package their own enterprises, including the number of enterprises and their business. The establishment of shell companies can increase the number of affiliated enterprises and highlight the strength of enterprises. At the same time, they can introduce the concepts of various business segments to enterprises through shell companies of different natures, so as to facilitate enterprises to obtain financing from banks.
Setting up a shell company can also meet the unknown demand in the future. For example, if an enterprise wants to cooperate with other enterprises, and both parties need to set up a joint venture company to promote the follow-up business, then the previously established shell company can come in handy. As long as the equity is changed, the business can be carried out, which is conducive to the promotion of the follow-up business.
Shell companies have many uses, but most of them are in the gray border. If you really want to engage in a certain business, you can wait until you need to register a company. There is no need to prepare the shell company in advance.