Singapore is a very attractive country in terms of foreign investments. This is because the government has enables various laws and incentives which encourage foreign direct investment. The company formation process in Singapore is quite simple, however, overseas entrepreneurs can also make good deals if they buy shares in Singapore companies. This option has the advantage of offering them more credibility when they start doing business in the city-state. Also, investors can negotiate the package of shares they want to buy in the Singapore company. There are also no restrictions imposed to those involved in the share purchase procedures in Singapore.
Our company formation experts can assist foreign investors who want to buy shares in local companies. They can also assist clients who want to open a company in Singapore.
Foreign investors or companies can buy shares in Singapore private companies which is quite common in the city-state or they can purchase shares in public companies from the capital markets the shares are listed on. It all depends on the intention of the buyer. Our company registration agents in Singapore can offer more information on the two ways of buying shares in local companies.
No matter the type of share purchase one intends to follow, a sale-purchase agreement must be signed by the buyer and the seller.
Once the Singapore company selling the shares has reached an agreement with the company or individual buying the shares, various documents must be prepared by both parties. Among these is also the sale-purchase agreement which provides for the terms and conditions under which the transfer of shares is completed. The parties will usually negotiate these terms and conditions.
Corporate buyers must also hold a shareholders’ meeting through which the conditions of the share purchase conditions are accepted after which they will notify the seller. Another important aspect to be taken into account by those buying shares in a company in Singapore is that the responsibility for the employees in which they purchased the shares will be theirs once the process is completed.
Also, once the transfer of shares is completed, the buyer must announce the changes made in the company to ACRA.
For full information on how to buy shares in a local company, please contact our Singapore company formation consultants. We also offer assistance if you want to open a company in Singapore.