Foreign investors can buy a shelf company in Australia if they prefer to skip over the standard incorporation process. A shelf company defines a legal entity that has already been incorporated and it is available for sale. It can be purchased by both local and foreign investors, following the signing of a sale agreement.
A shelf company for sale in Australia can come in the form of a newly incorporated legal entity or an aged company (a legal entity that has been incorporated for several years). Regardless of the choice, the sale formality is the same, and our lawyers in Australia can offer the necessary legal support throughout the entire procedure.
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What are the characteristics of a shelf company for sale in Australia?
The shelf company is a legal entity that has been incorporated as it is registered with the competent Australian authorities. It is incorporated under one of the business forms available in this country, in general, as a limited liability company (known as a proprietary limited company), because this is the most common way to carry out a business activity here.
It has a company name, a business number and a registered address, all of which can be modified by the buyer, which will become the new owner of the company after the sale process is over. Our law firm in Australia can help investors ease the process of making these changes, provided that the new owner wants to change these basic characteristics.
Persons who will buy a shelf company in Australia should also be aware of the following:
- if the company is incorporated as a proprietary limited company, it can have a minimum of 1 shareholder;
- however, this legal entity can’t have more than 50 shareholders, none of which can be employed in the company;
- a shelf company for sale in Australia can be purchased in 1 business day, thus the transfer of ownership can be completed in a very short amount of time;
- most of the shelf companies available for sale are incorporated in 2022, 2023 and 2024;
- the sale price varies between $1,400 to more than $8,000, depending on the company’s type, year of incorporation and the main features it includes.
What documents will the investors receive upon the sale of the shelf company?
Those who will purchase the shelf company will also receive a variety of basic corporate documents, along with the statutory documents. Investors will receive a certificate of incorporation issued by Australia Securities& Investments Commission (ASIC) and the company’s constitution, these representing the founding documents of any legal entity. Along these, investors will receive:
- the bank account opening kit;
- the directors’ minutes;
- share certificates;
- shareholder’s registers;
- officeholder consent and registers;
- journals.
Prior to buying the company, our Australian law firm will conclude due diligence formalities, to make sure that the company meets the basic standards for sale and that all its documents reflect the real situation of the company.
It must be noted that even if the company is an aged one (meaning, incorporated for a longer period of time), shelf companies are sold as dormant companies, which means that they did not have any commercial activities prior to the sale.
Investors will also receive the 484 Form (Change to company details), which will be used to modify any of the standard registration characteristics that can be modified as per the applicable law. Our Australian lawyers can help you complete this form, along with any other forms that must be submitted with ASIC.
If you plan to carry out a business activity in the city of Sydney, our lawyers in Sydney can offer the necessary legal support. You can also address if you want to develop your operations in other Australian regions. Please contact our attorneys in Australia for further information on any other procedures imposed to those who buy a shelf company in Australia.