Shelf Companies Singapore – Everything You Need To Know From Chai Chung Hoong
When it comes to business and transactions, there are several factors that come into play. Finding a good Singapore shelf company for sales can be a tough nut to crack if you don’t even know the basics around a new country or state. Speak to AI Accountant Chai Chung Hoong who is here to provide you with resources and explain what is shelf company for sale in Singapore. It is very important to ensure that you focus on some of the details and familiarize yourself with this before moving forward with this.
To help you gain a better insight into the shelf company for sales, we have prepared this easy but comprehensive guide for you to look into.
WHAT IS A SHELF COMPANY?
For those who aren’t aware, a shelf company is a company incorporated and compliant with the Companies Act. Shelf company is functional but has been dormant since it was set up. For the most part, they are also termed as an aged corporation, much like a readymade company that you can buy if you have the resources at hand.
Even though such companies are inactive and dormant, they are assessed as some of the best options to take over if you are thinking of expanding or trying your luck out with the business.
WHAT DOES THE PROFILE OF A SHELF COMPANY LOOK LIKE?
With the basic introduction out of the way, the next thing that you do need to focus on are the statutory requirements of the shelf company. It might seem simple but having a quick and thorough rundown can help assess the possible scope and role for the company.
Some of the points include:
- Should have a local registration under the Private Limited Company
- Should have at least one local director responsible
- Should have a local company secretary within six months of the registration
- Should have at least one valid shareholder
- Should have more than or at least one foreign directors
- Should have a minimum paid-up capital of S$1
WHAT ARE THE ADVANTAGES OF A SHELF COMPANY?
The advantages of Singapore shelf company include:
- Exempts the new buyer who need not undergo the registration process from scratch
- Can kickstart the business operations right away with a new team
- When investors want to merge their existing companies
- To enhance the chances of getting better loan approval
- To enhance the chances of getting more investors and clients
- To use the company as a vehicle to file for the offshore status
DISADVANTAGES OF A SHELF COMPANY
Every coin has two sides to it. Just as there are advantages, there are some disadvantages as well. AI Accountant Chai Chung Hoong highlights the possible disadvantages.
- It is important for the buyer to do due diligence because of the aged status of the company
- The buyer may not be able to take advantage of new company setup tax benefits from the government
- Buyers have more limited leeway of choosing the company structure
When it comes to shelf companies, these are some of the important insights that one needs to know about. If you need any professional advice on shelf company for sale, contact AI Accountant Chai Chung Hoong now. We hope this gives you the basic rundown of everything there is to know about it.