Shell

Definition

In the context of business, a shell refers to a company that exists only on paper and has no office and no employees, but may hold assets or intellectual property. Shells are often used for various financial strategies, including mergers and acquisitions, tax benefits, and raising capital.

Related terms

Mergers and Acquisitions: The process where two companies combine (merger) or one company buys out another (acquisition) to strengthen their market position or expand into new areas.

Tax Evasion: Illegally avoiding paying taxes by individuals, corporations, and trusts through various means which can sometimes involve the misuse of shell companies.

Capital Raising: The act of obtaining funds to finance projects, operations, or investments, often through selling equity or debt instruments to investors