Definition: Shell company
Foreign direct investment
A shell company is a company that is formally registered, incorporated, or otherwise legally organised in an economy but which does not conduct any operations in that economy other than in a pass-through capacity. Shells tend to be conduits or holding companies and are generally included in the description of Special Purpose Entities.
Organisation for Economic Co-operation and Development (OECD), "OECD Benchmark Definition of Foreign Direct Investment, Fourth Edition 2008", Paris, 2008