• Shell Corporations

  Filed under News
  May 15

  Coat, English limited and stock companies using shelf companies and shell corporations in Germany since the Centros decision (ECJ v. 09.03.99, case C-212/97) and the decision in the case of uberseering (ECJ v. 05.11.02 RS. C-208/00) in 2002, buying a British limited was advertised in many places. The motivation for many prospective customers of an English capital company was primarily due to the low initial capital of only 1. Although the care of an English limited overwhelmed most of the buyers and the administration only with help from third parties and with significant cost to accomplish was, sales boomed until summer of 2008.

  Then, the haunting was ending. “Because the German legislature, the English limited a thorn in the flesh” was a German alternative was created and (limited) launched the entrepreneurial society. Here, too, the minimum capital is only 1. At the same time, the legislature has taken the opportunity and within the framework of the MoMiG (Modernisierungs-and) Abuse Control Act) the Act comprehensively modernized. The legislature has deliberately not limited the possibilities for the establishment of stock companies, but rather facilitates facing the cash pooling scheme. Therefore shall apply unchanged, that buying a stock GmbH or stock-AG is a desirable and therefore sought after way very quickly to start a company. Is a stock company when (as the name suggests) is a company based on stock.

  This can be for example in the form of GmbH, AG, GmbH & co. KG, or a so-called Societas Europaea (European company). These shelf companies are”virgins, so still no business activity have had. The companies be established merely for the purpose of later sale. They are equipped so that the buyer can immediately be active with her. Above all, this means that the company in the commercial register is registered and that the capital was deposited. Furthermore – at least the reputable providers – was a vote of the company with the competent Chamber of Commerce, as well as a registration of society in the business office and the IRS.

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