Shell corporation

Uncommon card · No. 128774

A shell corporation (also known as a shell company or paper company) is a company or corporation with no significant assets or operations, often formed to obtain financing before beginning business. Shell companies were primarily vehicles for lawfully hiding the identity of their beneficial owners, and this is still their defining feature due to the loopholes in global corporate transparency initiatives. A shell corporation may hold passive investments or be the registered owner of assets, such as intellectual property or ships. Shell companies may be registered to the address of a company that provides incorporation services, and which may act as the statutory agent (also known as registered agent or resident agent) for receipt of legal correspondence. The shell company may serve as a vehicle for business transactions without itself having any significant assets or operations. Shell companies are used for lawful purposes such as holding assets or tax avoidance. However, they can also be...

Read on Wikipedia · Image Original: MisterMatt Vector: MesserWoland, CC BY-SA 3.0