Secret company
Secret company is one of three forms of association agreements between companies.
It takes the form of a separate non-registered entity, belonging to the partners. Its purpose is to implement covert operations and projects aimed at cost and risk dispersion between members of the association and management of common resources.
Activities of the association remain secret, but shareholders of this entity is known so they will not seek to influence on the other shareholders which could be their competitors. Such companies usually have a place in trade activities. There are not known in Poland.
Other forms of association agreements between companies are: interest groups and association agreements. These agreements are placed among the broader category of non-share based strategic alliances.
When to use secret company
A secret company, also known as a "shell company" or "nominee company," is a legal entity that is used to conduct business transactions while hiding the true identities of the individuals or entities behind the company. Secret companies are often used for illicit activities such as money laundering, tax evasion, and other forms of financial fraud.
It is illegal to use a secret company for illegal activities. The use of a secret company is also frowned upon by regulators, financial institutions and other law enforcement agencies as it makes it harder to track financial transactions and detect illegal activities.
It is important to note that the use of secret companies is not always illegal or unethical, they can also be used for legal activities, such as protecting personal or corporate assets from lawsuits or creditors, or for business purposes, such as maintaining business confidentiality. But in any case, it is important to ensure that all legal and regulatory requirements are met and that the use of a secret company does not violate any laws or regulations.
It is always advisable to consult with a legal and financial expert before using a secret company, to ensure that it is being used in a legal and ethical manner.
| Secret company — recommended articles |
| Enterprise — Subsidiary — Nominee shareholder — Takaful — Company limited by guarantee — Fidelity guarantee — Limited partnership — Nominee shareholding — Beneficiary Of Trust |
References
- Havens, L. (2004). The best kept secret: How to form an effective alliance. Harvard review of psychiatry, 12(1), 56-62.
- Isabella, L. A. (2002). Managing an alliance is nothing like business as usual. Organizational Dynamics, 31(1), 47-59.
- Reuer, J. J., & Arino, A. (2007). Strategic alliance contracts: Dimensions and determinants of contractual complexity. Strategic Management Journal, 28(3), 313-330.
- Whipple, J. M., & Frankel, R. (2000). Strategic alliance success factors. Journal of Supply Chain Management, 36(2), 21-28.
