{"id":4802,"date":"2015-12-07T08:00:33","date_gmt":"2015-12-07T08:00:33","guid":{"rendered":"http:\/\/www.asociacion-eurojuris.es\/en\/?p=4802"},"modified":"2020-04-11T07:15:59","modified_gmt":"2020-04-11T07:15:59","slug":"acquisition-of-shelf-companies-in-spain","status":"publish","type":"post","link":"http:\/\/www.asociacion-eurojuris.es\/en\/acquisition-of-shelf-companies-in-spain\/","title":{"rendered":"Acquisition of shelf companies in Spain"},"content":{"rendered":"<p style=\"text-align: justify;\">The main advantage in acquiring a shelf company is saving time. A company\u2019s start-up period can be circumvented by acquiring a shelf company and the purchaser receives a company which is capable of acting within a very short time.<!--moreAcquisition of shelf companies in Spain--><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Less liability risks in acquiring shelf companies<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">When establishing a new company it must be noted that a lot of time will pass until the company is entered into the Commercial Register \u2013 depending on the workload of the courts and in case of any approval requirements of other institutions like the Chamber of Commerce or the Chamber of Crafts. During the period until the company\u2019s entry into the Commercial Register is made, the company\u2019s shareholders bear unlimited liability with their business and personal assets. The period until the entry of the amendment of the company\u2019s bylaws is made when acquiring a shelf company is often shorter compared to the period of time until a newly established company is entered into the Commercial Register.<\/p>\n<p style=\"text-align: justify;\">Therefore, the period of time until the company\u2019s entry into the Commercial Register is reduced and, with the entry, the shareholders\u2019 liability cease. As a consequence liability risks are decreased.<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Anonymity in the Spanish Commercial Register<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">Another advantage is that only founding members\/partners of the company are announced in the Spanish Commercial Register. Subsequent disposals of the company do not become public knowledge and are not recognizable or transparent. This creates a certain anonymity.<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Acquiring a used shell company<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">The acquisition of a used shell company entails high liability risks because of its <span class=\"cursiva-azul\">previous life<\/span>. In comparison, acquisition and use of a shelf company is less risky. The majority of its capital resources is still available at the time of <span class=\"cursiva-azul\">economic re-establishment<\/span>, generally only reduced by start-up expenditures and insignificant bank charges.<\/p>\n<p style=\"text-align: justify;\">Nevertheless, the risk remains that the shelf company has obligations to third parties or that a loaning of capital has taken place between the company&#8217;s formation and its subsequent sale.<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Avoiding risks in acquiring a shelf company<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">To avoid risks, one ought to take a careful look at the vendor of a shelf company prior to the acquisition.<\/p>\n<p style=\"text-align: justify;\">It should be noted that there will be extra service costs when acquiring a shelf company.<\/p>\n<p style=\"text-align: justify;\">Accordingly, given the amount of time saved, the acquisition of a shelf company might be an interesting alternative to establishing a new company.<\/p>\n<p style=\"text-align: justify;\">To sum up, the following three points should be emphasized as advantages of acquiring a shelf company:<\/p>\n<ul>\n<li style=\"text-align: justify;\">saving time<\/li>\n<li style=\"text-align: justify;\">less risks<\/li>\n<li style=\"text-align: justify;\">more anonymity<\/li>\n<\/ul>\n<p><strong>Catharina Jung &amp; Karl H. Lincke<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By acquiring a shelf company, a company\u2019s start-up period can be circumvented, saving considerable time. This is a major benefit as it takes several months to establish a new company in Spain. Additionally, since shareholders bear unlimited liability with their business and personal assets during the time until the company\u2019s entry into the Commercial Register is made, risks are reduced when the start-up period is reduced.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1064],"tags":[],"class_list":["post-4802","post","type-post","status-publish","format-standard","hentry","category-pubications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Acquisition of shelf companies in Spain<\/title>\n<meta name=\"description\" content=\"Some of the advantages of acquiring shelf companies in Spain include the saving of time, the reduction of risks and the anonymity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/www.mariscal-abogados.com\/acquisition-of-shelf-companies-in-spain\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Acquisition of shelf companies in Spain\" \/>\n<meta property=\"og:description\" content=\"Some of the advantages of acquiring shelf companies in Spain include the saving of time, the reduction of risks and the anonymity.\" \/>\n<meta property=\"og:url\" content=\"http:\/\/www.mariscal-abogados.com\/acquisition-of-shelf-companies-in-spain\/\" \/>\n<meta property=\"og:site_name\" content=\"Eurojuris Espa\u00f1a\" \/>\n<meta property=\"article:published_time\" content=\"2015-12-07T08:00:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-11T07:15:59+00:00\" \/>\n<meta name=\"author\" content=\"Mariscal &amp; 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