what are shell companies?

 Shell companies are companies that exist primarily for legal or business purposes but have little to no operations or business activities. They may have no employees, assets, or significant revenue, and are often used as a means to hold assets, manage finances, or for other purposes that are separate from their nominal business activities.

Shell companies can be used for various reasons, including reducing tax liability, facilitating mergers and acquisitions, or providing a corporate structure for conducting business activities. Some shell companies are legitimate, while others may be used for illegal activities, such as money laundering, tax evasion, or to hide ownership or assets.

It is important to note that not all shell companies are engaged in illegal or unethical activities, but investors and regulators are often wary of shell companies due to their potential use in hiding information or engaging in unethical practices.