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What's a public shell company
or a public shell corporation?









Shell Company, Shell Corporation, Shelf
Corporation Definition

A public shell company, also called a "public shell corporation" can be a company that has already gone through the SEC (Securities and Exchange Commission) review process and received its stock symbol; although it was once a trading and reporting company, it stopped actively engaging in business activity. This type of public shell company - or public shell corporation - typically has very few assets and little ongoing business operations or activity.

Another type of shell company or shell corporation is the blank check public shell corporation, not to be confused with a "shelf corporation." This kind of shell company has been created expressly for attracting a private company to do a reverse merger with. Once the reverse merger is done, and the proper forms are filled with the Securities and Exchange Commission (SEC), it then becomes a fully trading and reporting company. Blank check companies are favored by investment sources and advisers due to the fact that it is relatively new company that never had a business it it before so it is clean.

           How To Use a Public Shell Corporation
           or Public Shell Company





Although the uses for public shell companies or public shell corporations are many, these are some of the most common strategies:

Closing The Deal: A shell company can be used to cement or finalize an investment transaction, such as when a company is seeking to close a PIPE offering (Public Investment in Private Equity).
Brand Protection: Many companies that produce brand name items sold at upscale stores will market through a public shell corporation when selling to low end retailers. 
Company Creation: An individual or a group wishing to create a new business can use a public shell company without having to start from scratch.