Shell Corporation

Shell corporation

An incorporated company with no significant assets or operations, often formed to obtain financing before beginning actual business, or as a front tax evasion.

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shell corporation

A corporation that has no active business operations and few or no assets.

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Shell Corporation

A company that exists as a vehicle for transactions without any independent activities or assets. Shell corporations are formed sometimes to obtain financing before they begin operations, or after a bankruptcy and business has ceased. They are also used in tax avoidance and tax evasion schemes: for example, companies may set up shell subsidiaries in tax havens and hide profits in them. See also: Reverse acquisition.