Shell Company
/ˈʃɛl ˈkʌmpəni/
Definitions
- (n.) A corporation without active business operations or significant assets, often used to facilitate financial transactions or legal purposes.
The investigators uncovered that the funds were routed through several shell companies to conceal their origin.
- (n.) A company created to hold assets or manage liabilities while appearing as a separate entity, sometimes for tax avoidance or to obscure ownership.
Establishing a shell company allowed the investor to protect their identity during the acquisition.
Forms
- shell companies
Related terms
See also
Commentary
Shell companies often raise legal and regulatory concerns due to their potential misuse in fraud, money laundering, and tax evasion, requiring precise definition in compliance and corporate law contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.