A shelf company is a company (legal entity) that has been registered and legally formed but has
not been actively engaged in any business operations.

It’s essentially a pre-registered entity that’s waiting to be purchased and activated by a new owner for a specific
purpose. After you’ve bought it, you can tailor it to your business needs.

Why Is it a good Option?
1. It allows you to bypass the often-lengthy process of registering a new company, potentially saving time and effort. 
2. Helps quickly establish a business for specific purposes, such as signing contracts or applying for loans whose requirement is an existing company, let say, for one or 2 years. 
3. Additionally, since the legal entity had been registered let say 1 or 3 years back, a shelf company offers a perceived boost in credibility due to its pre-existing registration date and makes you present as an experienced company.