Shell Company

A shell company is a business entity that exists only on paper and has no significant operations or assets. It is often used for various legitimate purposes, such as facilitating mergers or investments without needing a physical presence. However, shell companies can also be misused for illegal activities, like hiding money or evading taxes, because they can make it difficult to trace the true ownership and financial activities. In essence, while they can serve valid business functions, they also raise concerns about transparency and accountability.