Once a foreign entrepreneur has chosen to invest in Ireland he can either set up a new company or acquire a shelf company. Shelf company, also known as a readymade company, is a legal entity that was previously established and is ready for immediate use on a shelf.

There are basically two types of shelf companies. They may be called differently, but the main idea is that the first type of shelf company is clean, which means that there has never been a transaction in this business. The other type of shelf company is usually older and has an operating history. While the investor must be cautious and due diligence prior to acquiring an aging shelf company to avoid buying a company with debt or other liabilities, there are various advantages and reasons why investors could choose a shelf company that was actively operated some time ago .

One of the main reasons investors might choose to acquire a shelf company over incorporating a new legal entity is the different time it takes for each process. Starting a new business requires an entrepreneur to go through complex and time consuming procedures while a shelf company is already established so the business can start operating almost immediately. In Ireland, new shareholders can usually acquire a company number within 24 hours or even the same day. Another important advantage is the additional credibility with suppliers and customers if a company was not founded recently, but a long time ago. If you are a sole trader or in a partnership with a legal entity established in the past, you can also receive tax planning benefits.

How to Buy a Shelf Company in Ireland
If you are purchasing shares in a shelf company in Ireland, you must notify the Companies Registration Office. The process of transferring shares is similar to a start-up, but requires significantly less time and documentation and is immediately ready for use. The new shareholders of the company are obliged to submit the purchase contract and, if the acquirer is a legal person, an extract from the commercial register. The purchase contract must be notarized and the articles of association must contain all significant changes, such as the new company, another object or another activity, the company headquarters and information about the new shareholders.

In general, the easiest way to acquire a shelf company, especially if you are a foreign entrepreneur, is through companies that provide such services. These companies acquire inactive businesses and hold them until someone is ready to buy them. They also start new businesses for the same reason, but the main difference is that these shelf companies have never been in business. The process is relatively uncomplicated and if you have any questions, professionals are at your side and you can acquire a shelf company in just a few steps:

Find a company that provides shelf company acquisition services. Do due diligence on this company as you will need to trust them with their research and ability to offer high quality shelf companies with no liabilities.
Place an order and provide all the information necessary to complete the process. An official document authorizing the activity on behalf of the new shareholders must be signed. In general, the service fee and the shelf company price must be paid before the documentation is processed.
Your service provider transfers the shares to the new shareholders, changes the board of directors, the secretary and the registered address of the company and can change the company name if necessary.
Some service providers also offer their premises for the registered company address.
Typically, prices vary depending on the service provider and the quality and age of the shelf company.