Shell Entity (Noun)
Meaning
A company that is incorporated but has no assets or operations.
Classification
Nouns denoting groupings of people or objects.
Examples
- The lawyer warned his client that creating a shell entity was not a legitimate way to hide assets from creditors.
- Regulatory bodies have started to crack down on shell entities used for tax evasion and money laundering.
- After a thorough investigation, authorities discovered the company was actually a shell entity with no actual business operations.
- The shell entity had been set up to purchase the property, but it was unclear who actually owned it.
- By moving funds through a network of shell entities, the company was able to disguise the true source of the money.