The similarities between a normal Company and a Shelf Company
You might be surprised, but there isn’t a significant technical difference between a Shelf Company and a normal Company in South Africa.
That’s because, in essence, a Shelf Company IS a regular company. It’s just a regular company that’s already been registered at the CIPC according to SA Company legislation.
Technically, the process of registering a Shelf Company and a standard Company is the same.
The differences between a normal Company and a Shelf Company
The only difference is the fact a Shelf Company is already through the company registration process. That’s why we call it a Shelf Company. It’s an average Company that we’ve “placed on the shelf” so you can pick one “off our shelf” and use it immediately.
The reason we do that is to save you time. You don’t need to register the business and reserve a name, because we’ve already done that.
You don’t need to wait for the CIPC, because that process is already done and dusted. It’s a legally registered business that’s ready to trade. The process of buying a Shelf Company is much quicker than registering a new business.
So, in essence, the most significant difference between a Shelf Company in South Africa and a normal Company is the time that stands between you and your ability to trade using its Company Registration documents.
The other big difference is that the registration date is naturally older when you buy a Shelf Company. This is significant because it can open up doors to new clients (or contracts) who prefer working with Companies who have been in business for a certain number of years.