“Privacy Haven for Non-U.S. Citizens.”
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Shelf corporations in the United States have many profound business purposes. They are frequently used for holding personal or business assets. Another common purpose for the creation of a shelf corporation is as a turn-key business package that can later be sold to someone who wants to start and operate a company without going through the effort to form a new one. Others might benefit who may not qualify for a bank loan, line of credit, or government contract because they or their existing company does not have the required credit scores or a two to five year established business history. By purchasing a shelf corporation, an entrepreneur now instantly owns an established company that has been “in business” for several years without debts or liabilities.
For Non-U.S. citizens, owning a shelf corporation in the United States may enhance privacy and open new markets. Since the United States is not a participant in the OECD Common Reporting Standards, it is often looked upon as a privacy haven for non-citizens looking to invest here. The Common Reporting Standard (“CRS”), was created by the OECD in 2014 pursuant to a meeting of the G-20 nations in Australia and calls for the automatic exchange of financial account information between agreeing jurisdictions. It should also be noted, however, that to open a bank account, Non-U.S. citizens will likely need to travel to the United States and meet with potential banks.
Therefore by owning a pre-established corporate entity, you are able to take advantage of the following benefits:
1- Instant availability & fast delivery
2- Show longevity of company filing
3- Immediately own a company with a filing history
4- Ready for immediate transfer as no stock is currently issued
5- May help when applying for contracts and financing
