Using a shelf company for tenders

Why tenders ask about company age

Procurement teams use incorporation date as a simple filter for stability. A rule such as 'the bidder must have been incorporated for at least three years' is common in public and corporate tenders.

What an aged shelf company can do

It gives you a legal entity that genuinely has the required incorporation date. If the requirement is only about how long the entity has existed, an aged company satisfies it.

What it cannot do

• It has no turnover, so it cannot meet a minimum turnover test
• It has no filed trading accounts, so it cannot evidence financial standing
• It has no past contracts, so it cannot provide references or case studies
• It has no credit history

Where a tender asks for these, you may be able to rely on a parent company, a consortium partner or the track record of key personnel, if the tender rules allow it.

Use it honestly

Never describe an aged company as having traded before you bought it. Misrepresentation in a bid can lead to exclusion, contract termination and, in public procurement, more serious consequences. State the facts: the company was incorporated on its date, and began trading under your ownership.

Practical checklist

• Read the exact wording: incorporation date, trading history or both?
• Check whether group or personnel experience can be relied on
• Allow time for a bank account, insurance and any registrations the tender requires
• Keep the purchase documents, as buyers sometimes ask when ownership changed

Find the right age

Tell us the minimum age the tender requires and we will check availability: see aged shelf companies and UK ready made companies.