Editing Shell corporation (section)

== Countries of domicile ==
Typical countries of domicile of shell companies are [[offshore financial centre]]s like [[Republic of Ireland|Ireland]], [[Liechtenstein]], [[Luxembourg]], [[Switzerland]], [[Isle of Man]], and the [[Channel Islands]] including [[Guernsey]] and [[Jersey]] in Europe, [[The Bahamas|Bahamas]], [[Barbados]], [[Bermuda]], [[Cayman Islands]], and [[British Virgin Islands|Virgin Islands]] in the Caribbean, [[Panama]] in Central America, and [[Hong Kong]] and [[Singapore]] in Asia. Shell companies are usually offered by law firms based in those countries.<ref name=":0">{{Cite web|url=http://panamapapers.sueddeutsche.de/articles/56febff0a1bb8d3c3495adf4/|title=About the Panama Papers|website=Sueddeutsche Zeitung|publisher=Süddeutsche Zeitung|access-date=2018-06-10}}</ref> The process of establishing a shell company can sometimes be done very quickly online.<ref>{{Cite news|url=http://www.abc.net.au/triplej/programs/hack/setting-up-your-own-tax-haven-shell-company-takes-10-minutes/7297094|title=Setting up your own tax haven shell company takes 10 minutes|date=2016-04-04|work=triple j|access-date=2018-06-09|publisher=abc.net.au|language=en}}</ref>

In 2021 anonymous corporations were made illegal in the United States with the passage of the Corporate Transparency Act as part of the [[William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021]]. Exemptions were included which are meant to limit its scope to the entities most likely to be used for illicit purposes. Companies which are exempt from the act include foreign companies that do not formally register to do business and companies that fall into one of 24 enumerated categories, which include companies that employ more than 20 people, have revenues above $5 million, and a physical presence in the United States, as well as churches, charities, non-profits, trusts and partnerships. Companies that are banks, broker-dealers, public issuers, and insurance companies are also exempt.<ref>{{Cite web|last=Appleton|first=Robert|date=2021-02-04|title=The End of the Anonymous Shell Company in the United States|url=https://corpgov.law.harvard.edu/2021/02/04/the-end-of-the-anonymous-shell-company-in-the-united-states/|access-date=2021-05-31|website=The Harvard Law School Forum on Corporate Governance|language=English}}</ref><ref>{{Cite web|date=2020-12-16|title='Long Overdue' Anonymous Shell Company Reforms Move Forward|url=https://tax.thomsonreuters.com/news/long-overdue-anonymous-shell-company-reforms-move-forward/|access-date=2021-05-31|website=Thomson Reuters Tax & Accounting News|language=en-US}}</ref><ref>{{Cite web|last=Kirby|first=Jen|date=2020-12-21|title=The US has made its biggest anti-money-laundering changes in years|url=https://www.vox.com/22188223/congress-anti-money-laundering-anonymous-shell-companies-ban-defense-bill|access-date=2021-05-31|website=Vox|language=en}}</ref><ref>{{Cite web|date=2021-01-02|title=US passes 'historic' anti-corruption law that effectively bans anonymous shell companies|url=https://www.independent.co.uk/news/world/americas/us-passes-historic-anti-corruption-legislation-that-effectively-bans-anonymous-shell-companies-b1781380.html|access-date=2021-05-31|website=[[The Independent]]|language=en}}</ref>

Due to [[federalism]] in the United States, shell companies are often set up in states such as [[Delaware]], [[Nevada]], and [[Wyoming]] due to advantageous tax regimes.<ref>{{Cite journal|last=Sharman|first=J. C.|date=Fall 2010|title=Shopping for Anonymous Shell Companies: An Audit Study of Anonymity and Crime in the International Financial System|journal=Journal of Economic Perspectives|volume=24|issue=4|pages=127–140|doi=10.1257/jep.24.4.127|doi-access=free|hdl=10072/36463|hdl-access=free}}</ref><ref>{{cite news|newspaper=The Guardian|title=Forget Panama: it's easier to hide your money in the US than almost anywhere |author=Jana Kasperkevic|date=6 April 2016|url=https://www.theguardian.com/us-news/2016/apr/06/panama-papers-us-tax-havens-delaware}}</ref>