By Vlad Cuc, specialist in company formation matters
Singapore is a great investment destination for foreign businessmen that have many possibilities of opening companies in different industries. Foreign investors can set up a new company or purchase an already registered one. The main advantage of the registered or shelf company, as many people refer to it, is the fact that being registered it does not need to go through the whole incorporation procedure again.
If you are interested in a shelf company for sale in Singapore, our local agents are at your service for guidance in how to choose and purchase one.
What are the benefits of shelf companies in Singapore?
The first and probably most significant advantage of buying a shelf company in Singapore is the time an investor can save with the incorporation. It is a well-known fact that a company’s reputation is built throughout the years, so investors can choose to buy aged companies that will provide them with the reputation they require. Foreign investors must also know that a wide range of shelf companies are available for purchase and our experts in company formation in Singapore will offer the best solutions available. Clients can consult with our specialists and select between shelf private or public limited liability companies and companies limited by shares. Another benefit of shelf companies is that through them, investors get the possibility of obtaining loans without much effort and finding better business opportunities through a shelf company with an established reputation than by opening a new company in Singapore.
A shelf company for sale in Singapore is often the choice of those who want to skip the regular formalities of registering a new business. However, if you want to open a company in Singapore and cannot decide between a new and a ready-made one, we can advise on the suitable option.
What are the features of shelf companies in Singapore?
As ready-made companies are registered at the time of the purchase in Singapore, they will have a name, the statutory documents which will contain the names of shareholders and directors and the secretary. Additionally, Singapore shelf companies are registered with the tax authorities, and thus have a tax registration and a GST number in order to start operating immediately. They will also have a corporate bank account.
Since the Company Law is tailored to provide to the needs of foreign investors, one should know that changing the company structure is possible in Singapore.
Our Singapore company formation consultants can assist in the relation with the Accounting and Regulatory Authority in the city-state by mediating the changes brought to shelf companies.
Legal forms for a shelf company for sale in Singapore
Shelf companies must meet the same requirements as new companies, meaning that they are registered under provisions of the Singapore Company Act prior to be put on sale. The most common legal forms ready-made companies take in the city-state are the private limited liability company and the joint-stock or public company. Among these, the private one is often employed by those who sell such entities, as they can comply with all the legal requirements imposed by the law through very simple procedures.
Shelf companies registered as private limited liability companies in Singapore can be used for setting up businesses in all industries, except for certain sectors of the financial one, such as investment fund where specific requisites must be respected.
The documents a Singapore company comes upon being sold
Those who want to buy Singapore shelf companies should note that these usually come with:
- the Memorandum and Articles of Association which must only be amended,
- with the registered address which can be changed or not,
- with the tax identification number and the GST number,
- the Certificate of Registration and Business Profile.
There are various changes that can be brought, however, some of these are mandatory. For example, the names of the new shareholders must be written in the Articles of Association. Usually, the directors and company secretary are also replaced, however, nominee services are used for quick replacement.
If you are seeking for a shelf company for sale in Singapore, we are at your service in finding the one that meets all your requirements.
What are the most common uses of shelf companies in Singapore?
As mentioned above, a Singapore shelf company can be used for various purposes, however, it is usually employed for completing business operations. Aside from this, a ready-made or aged company also has the following uses:
it can be used for relocation by incorporating the history of an existing business into the shelf company bought to operate in Singapore,
it is a good vehicle when seeking to obtain loans from Singapore banks (some banks require an established reputation and history),
it can be used for private-public partnerships with the Singapore authorities for joint projects,
it can be employed for joint venture agreements with other private businesses in Singapore,
it can also be used as a subsidiary for foreign enterprises, however, this is very seldom the case.
If you are interested a shelf company for sale in Singapore, you can obtain information on the steps you need to complete when buying one from our consultants. Furthermore, we can also help you verify the selected entity.
You can also read about how to buy a shelf company in Singapore in the scheme below:
How is a shelf company registered in Singapore?
The registration procedure of a ready-made company is quite simple in Singapore. Once the investor has chosen the appropriate type of structureand established all the details with the seller, a sale-purchase contract will be prepared, followed by the transfer of ownership. After the contract is signed, our specialists in company registration in Singapore will amend the Articles of Association, if required, and submit it together with the other necessary documents with the Companies Register. Foreign enterprisers must know that they are allowed to appoint a new director and secretary for the recently purchased shelf company according to the Companies Law in Singapore.
If you are seeking for a shelf company for sale in Singapore, do not hesitate to ask for our company formation specialists’ support.
What are the services related to buying a read-made company in Singapore?
Foreign investors can ask for additional services when purchasing a shelf company with our company formation representatives in Singapore. We offer a wide range of accounting and nominee services, among which the most sought are the nominee shareholder, director and secretary services. Apart from these, foreign investors can also rely on us if they need virtual CFO services. We can also assist foreign investors when choosing between a shelf or a new company.
Taxation of a shelf company in Singapore
From a taxation point of view, nothing will change when buying a shelf company in Singapore. This means that the business will pay the corporate tax just like any other business. Also, based on the shareholders’ nationalities, Singapore’s double tax treaties can be imposed thus giving the possibility of obtaining various tax deductions and exemption under the provisions of such agreements.
A shelf company for sale in Singapore is one of the simplest ways of starting a business, and our officers are at your disposal for guidance in buying one.
Why start a business in Singapore
Like all countries around the world, Singapore was also affected by the 2020 COVID pandemic, which resulted in a shrink of the economy, however, 2021 brings better prospects for the city-state’s economy. According to Focus Economics:
- the Singapore’s government prediction is for an economic increase of 4% to 6% in 2021,
- according to Focus Economic’s specialists, Singapore is expected to register and increase of 3.8%,
- 2022 is expected to bring a 4.1% growth in the city-state’s Gross Domestic Product.
If you are interested in a shelf company for sale in Singapore, you can send your questions to our advisors.
Find out from the video below why buy a shelf company in Singapore:
For details on how to open a company in Singapore and prices for shelf companies you can contact our specialists.