shell corporation
Học thuậtThân thiện
Definition
Noun: A shell corporation is a legal business entity that is formally registered and incorporated but lacks significant assets, active business operations, or employees. It exists primarily on paper.
Usage
A shell corporation is used as a legal structure. It is important to note that while it can be used for legitimate purposes like holding assets or facilitating mergers, the term often carries a negative connotation due to its frequent association with concealing ownership, avoiding taxes, or other illicit financial activities.
Examples
- The investigation revealed that the funds were funneled through a shell corporation registered offshore.
- For the joint venture, they set up a shell corporation to hold the intellectual property.
- Authorities are cracking down on the use of shell corporations for money laundering.
Advanced Usage
- "To be a mere shell corporation": Emphasizes that the company has no substantive business beyond its legal registration.
- The address listed was a virtual office; the company was a mere shell corporation.
Variants and Related Words
- Shell company: A common synonym with identical meaning.
- Letterbox company: A similar term, often used in a European context.
- Special Purpose Vehicle (SPV): A type of legal entity (which can be a shell corporation) created for a specific, often narrow, financial transaction.
Synonyms
- Dummy corporation
- Paper company
- Non-operating company
Related Idioms & Phrases
- "A corporate shell": This phrase refers to the empty structure of such a company.
- After the bankruptcy, only a corporate shell remained.
- "To be a front": While not exclusive to corporations, this idiom describes an entity used to conceal illicit activities, which is a common function of a shell corporation.
- The restaurant was just a front for the crime syndicate.
Noun
- a company that is incorporated but has no assets or operations