Definition: Shell company

Category: 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. http://ec.europa.eu/eurostat/ramon/statmanuals/files/Foreign_direct_invest_EN.pdf