Shell companies

Trading with shell companies

The term shell company refers to an inactive company in the form of a public limited company or limited liability company. The company was once economically active, but has stopped its business activities and consists only of a shell that remains as a legal entity in the commercial register. Instead of liquidation, the sale of such a company is pursued. The only asset consists of a claim against a shareholder (in the case of a public limited company) or a partner (in the case of a limited liability company) and on the liabilities side is the share capital or partner capital.

We only deal with companies that have no losses carried forward. If the tax authorities recognise a company as a shell company, losses are not recognised and can lead to considerable negative tax consequences for the shareholder.

We do not favour this type of entry into entrepreneurship, but we do see advantages in it.

1. The public limited company guarantees anonymity - the shareholders only have to be disclosed to the tax authorities and to financial institutions with which a business relationship exists.

2. You can immediately become operational when you buy a shell company. You do not lose any time in setting up the company

3. There are no foundation costs, but the purchase of the shell company is correspondingly expensive.

4. A share capital of CHF 100‘000 as in the case of an ordinary foundation of a public limited company does not have to be provided.