top of page
  • a22162

How do I add a shareholder to an existing company


How do I add a shareholder to an existing company | Bestar
How do I add a shareholder to an existing company | Bestar


How do I add a shareholder to an existing company?


Adding a new shareholder to your company in Singapore involves several steps:


1. Gather Information:


  • You'll need details about the new shareholder, including their full name, residential address, and Identification Number (NRIC for Singapore Citizens or FIN for foreigners).

  • Determine the number of shares to be allotted to the new shareholder.


2. Prepare Share Certificate:


  • This step typically involves lawyers to ensure the share certificate is legally sound.  The certificate should outline the shareholder's name, the number of shares allotted, and any special rights or restrictions attached to the shares.


3. Update Company Register:


  • Singapore requires companies to maintain a register of shareholders. You'll need to update this register to reflect the new shareholder's information and the number of shares allotted.


4. File with ACRA:


  • The Accounting and Corporate Regulatory Authority (ACRA) is the official registrar of companies in Singapore. You'll need to file a "Return of Allotment of Shares" with ACRA to notify them of the change in shareholding. This can be done electronically through BizFile+.


5. Inform Company Secretary:


  • If your company has a company secretary, they will need to be informed of the new shareholder and update the company's records accordingly.


Additional Tips:


  • Ensure your company's constitution allows for the issuance of new shares.

  • There may be stamp duty payable on the transfer of shares.

  • Consider seeking professional advice from a lawyer or corporate secretary to ensure the process is completed correctly.


For more information on the process, you can refer to the ACRA website on how to update shareholder information: https://www.acra.gov.sg/how-to-guides/updating-information-of-companies-and-company-officers/change-in-particulars-of-shareholders


How do I add a new shareholder in ACRA


ACRA (Accounting and Corporate Regulatory Authority) doesn't directly add new shareholders. They maintain the company registry, so you'll need to file the appropriate form to update their records. Here's how to add a new shareholder in Singapore through ACRA:


Gather Information:


  • New shareholder's details: Full name, residential address, and Identification Number (NRIC for Singapore Citizens or FIN for foreigners).

  • Number of shares to be allotted to the new shareholder.


Prepare Share Certificate:


  • Consider consulting a lawyer to ensure the share certificate is legally sound. It should detail:

  • Shareholder's name

  • Number of allotted shares

  • Any special rights or restrictions attached to the shares


Update Company Register:


  • Your company should maintain a register of shareholders. Update it to reflect the new shareholder's information and allotted shares.


File with ACRA:


  • Submit a "Return of Allotment of Shares" electronically through BizFile+. This notifies ACRA of the change in shareholding.


Inform Company Secretary (if applicable):


  • If your company has a company secretary, inform them of the new shareholder and update company records accordingly.


Additional Tips:


  • Ensure your company constitution allows issuing new shares.

  • Stamp duty might be payable on the transfer of shares.


Who can be a shareholder of a Singapore company


Singapore is open to a variety of shareholders for its companies. Here's who can be a shareholder of a Singapore company:


  • Individuals: Both local Singapore Citizens (with NRIC) and foreigners (with FIN) can be shareholders.

  • Corporations: Other companies, registered locally or abroad, can also be shareholders.

  • Limited Liability Partnerships (LLPs): LLPs can hold shares in a Singapore company.


There are no restrictions on foreign ownership. A company can have 100% foreign shareholders.


However, some limitations exist:


  • Minimum and Maximum Number: A private limited company in Singapore must have at least one shareholder but cannot exceed 50 shareholders.

  • Company Constitution: The company's constitution might outline specific requirements or restrictions on who can be a shareholder.


Consider seeking professional guidance from a lawyer or corporate secretary for a smooth process.


How Bestar can Help

How do I add a shareholder to an existing company


Bestar's corporate secretary services can help you streamline the process of adding a new shareholder to your Singapore company in several ways:


  • Preparation and Filing:  We can handle the preparation of the share certificate, ensuring it adheres to legal requirements. We can also file the "Return of Allotment of Shares" with ACRA electronically through BizFile+.

  • Expertise and Efficiency:  With our experience in corporate secretarial matters, we can guide you through the process efficiently, saving you time and ensuring everything is completed correctly.

  • Compliance Management:  We can ensure you meet all the legal and regulatory requirements for adding a new shareholder, including any updates to the company register and adherence to company constitution rules.

  • Communication and Liaison: If there's any communication needed with ACRA or other parties involved, we can handle that on your behalf.


Overall, Bestar's corporate secretary services can act as a valuable partner throughout the process, saving you time, reducing the risk of errors, and ensuring a smooth experience.




1 view0 comments

Recent Posts

See All

How to develop a catering business?

How to develop a catering business? How profitable is a catering business? What licenses are needed to start a catering business in Singapore? What are the start up costs for a catering business?

Comments


bottom of page