Shelf company vs forming a new company: which is right for you?
By the Royale Corporate team · Published
· Last reviewed
· 2 min read
Form a new company if you only need a UK limited company: it is cheaper and Companies House usually registers it within a day. Buy a shelf company if you need an older incorporation date, or want a VAT number, EORI number or bank account already in place so you can trade immediately.
Key points
New companies are cheapest: you pay the Companies House fee plus any agent fee.
Shelf companies cost more because of their age and any registrations included.
A new company must apply for VAT and EORI itself; a VAT application can take several weeks.
Both are the same legal entity type (private company limited by shares) with the same ongoing duties.
Side-by-side comparison
Factor
New company
Shelf company
Cost
Companies House fee plus any agent fee
From £1,199 at Royale Corporate; more with VAT, EORI or bank account
Time to own a company
Usually within 24 hours online
Usually 3–5 business days after ID checks
Incorporation date
Today
When it was originally formed
VAT number
Apply to HMRC yourself; can take weeks
Available already registered
EORI number
Apply to HMRC yourself
Available already registered
Business bank account
Open one yourself
Available already opened (Wise, Zempler or Mettle)
Company name
Your choice
Existing name; can be changed afterwards
Trading or credit history
None
None (never traded)
Choose a new company if…
you will not exceed the VAT threshold soon and do not need to register voluntarily;
you are not importing or exporting goods yet;
no bank, supplier or contract you need requires a company of a certain age;
keeping costs as low as possible matters more than speed.
Choose a shelf company if…
you need to issue VAT invoices or reclaim VAT straight away;
you have goods arriving and need an EORI number for customs;
a marketplace, payment provider or landlord asks for an older company;
you want a bank account in place on day one;
you are outside the UK and want one provider to handle the whole set-up remotely.
What stays the same either way
Once you own it, a shelf company is run exactly like a new one. You must keep Companies House up to date, file annual accounts and a confirmation statement, tell HMRC when the company starts trading, and file VAT returns if it is VAT-registered. See annual obligations for a UK company.
This guide is general information, not legal or tax advice. Rules and fees change; check the official sources above or speak to a UK accountant before you act.
FAQs
Questions people ask
Only in the sense that its incorporation date is older. Banks and payment providers still check the directors and owners, the business plan and the source of funds.
Yes. A company can stay dormant as long as it files dormant accounts and confirmation statements. If it is VAT-registered and not trading, HMRC may cancel the VAT registration.
A VAT-registered shelf company: the VAT number already exists, so you can use it as soon as the transfer completes. A new company has to apply and wait for HMRC.
UK shelf company transferred — director appointed at Companies HouseVAT registration confirmed active for new client — HMRC verifiedCompany with EORI number handed over — ready for customs clearanceSame-day company transfer completed for UAE buyerBusiness bank account linked — client trading within 3 daysRoyale Corporate shelf company acquired by Amazon FBA sellerUK limited company transferred to Turkish entrepreneurHMRC VAT number verified — Stripe and PayPal approvedAged shelf company transfer completed — 3 years clean historyNon-UK resident approved — company transferred internationallyE-commerce business started with Royale Corporate companyImport/export licence approved using Royale Corporate EORI shelf companyCertificate of Non-Trading issued — zero debts confirmedCompanies House director appointment filed electronicallyWise business bank account linked — multi-currency readyUK shelf company transferred — director appointed at Companies HouseVAT registration confirmed active for new client — HMRC verifiedCompany with EORI number handed over — ready for customs clearanceSame-day company transfer completed for UAE buyerBusiness bank account linked — client trading within 3 daysRoyale Corporate shelf company acquired by Amazon FBA sellerUK limited company transferred to Turkish entrepreneurHMRC VAT number verified — Stripe and PayPal approvedAged shelf company transfer completed — 3 years clean historyNon-UK resident approved — company transferred internationallyE-commerce business started with Royale Corporate companyImport/export licence approved using Royale Corporate EORI shelf companyCertificate of Non-Trading issued — zero debts confirmedCompanies House director appointment filed electronicallyWise business bank account linked — multi-currency ready
