What Is a Shelf Company?
A shelf company—sometimes called a ready-made company—is a legal entity that has already been incorporated in Switzerland but has not yet conducted any business.
It already has a registration number, share capital, and corporate structure, allowing you to start operating immediately after purchase.
Many entrepreneurs choose shelf companies to save time instead of going through the full company formation process.
But how long can you keep such a company “on ice” before it must be activated?
How Long Can It Stay Dormant?
In Switzerland, there is no legal limit on how long a company may remain inactive — provided it continues to meet its basic legal and tax obligations.
However, keeping a company dormant for too long can lead to unnecessary costs and compliance risks.
Even when inactive, the company must maintain:
- A valid registered office address in Switzerland,
- A local representative or Swiss director if required,
- Proper accounting records and annual financial statements,
- Basic tax filings declaring zero activity.
DomizilAdresse helps clients manage all these administrative duties to ensure their shelf company remains in good standing.
Ideal Duration for Keeping a Company “On Ice”
While a shelf company can remain inactive for years, most experts recommend activation or sale within 6 to 18 months.
This period strikes a balance between flexibility and compliance, allowing you to hold the company until the right business opportunity arises.
After this time, it’s wise to review your company’s address agreement, accounting setup, and any bank account arrangements to keep everything up to date.
Benefits of Owning a Shelf Company
- Instant readiness – operate immediately after purchase
- Older incorporation date builds credibility with partners and investors
- Simplified procedures – no waiting for new registration
- Strategic flexibility – ideal for future investments, holding structures, or market entry
If your business is not yet active, you can still maintain a professional presence with our domicile and co-working solutions in Zug.
Risks of Extended Inactivity
- Ongoing administrative costs (address, accounting, compliance)
- Outdated documents requiring renewal
- Perception issues with banks or authorities
- Risk of deregistration for missed filings or reports
By partnering with DomizilAdresse, you can delegate your company address, secretarial services, and document management to ensure full compliance while your company remains on hold.
How to Maintain a Dormant Company Correctly
- Keep director and shareholder information current.
- Submit annual accounting and declarations on time.
- Renew your domicile or registered office every year.
- Conduct an annual compliance check with your provider.
- Plan ahead whether to activate, sell, or close the company.
Our experts ensure all paperwork and obligations are handled efficiently — whether your shelf company is waiting for activation or part of a larger investment plan.
Keeping a shelf company “on ice” is a practical way to maintain flexibility in Switzerland’s business environment.
With DomizilAdresse, your company remains legally compliant, cost-effective, and ready whenever you decide to start operations.
Ready to Activate or Acquire a Shelf Company?
DomizilAdresse assists with every step — from company formation and Swiss bank account setup to ongoing domicile management.
Get in touch today and discover how simple Swiss business setup can be.
📞 +41 (0)41 410 61 61
🏢 Blegistrasse 7, 6340 Baar, Switzerland