Ready-Made Company
- a22162
- Jan 21
- 4 min read
Ready-Made Companies in Singapore
In Singapore, a ready-made company, also known as a shelf company, is a pre-registered company that has little or no recent activities.
Here's what you need to know:
Benefits:
Faster setup: Buying a ready-made company can be quicker than forming a new one from scratch.
Established history: Some businesses may prefer to work with a company that has been in existence for a while.
Potential for easier financing: Lenders may be more comfortable lending to an established company.
Considerations:
Due diligence: Thoroughly investigate the company's history to ensure there are no hidden liabilities or legal issues.
Name change: You'll likely need to change the company name to reflect your business.
Cost: There may be additional costs involved in acquiring and transferring ownership of the company.
Here's more information on ready-made companies in Singapore:
Types of Ready-Made Companies:
Aged Companies: These companies have been in existence for a certain period (e.g., 1-5 years) and have a clean track record. They can offer a sense of legitimacy and stability.
Dormant Companies: These companies have been registered but have never conducted any business activities. They are essentially "blank slates" with no operational history.
Due Diligence Checklist:
Before purchasing a ready-made company, conduct thorough due diligence:
Company Background:
Incorporation Date: Verify the company's registration date with the Accounting and Corporate Regulatory Authority (ACRA).
Shareholders and Directors: Obtain a list of past and present shareholders and directors.
Financial Records: Request copies of audited financial statements (if available) to ensure there are no outstanding debts or liabilities.
Tax Compliance: Verify that the company has filed all necessary tax returns and has no outstanding tax obligations.
Legal Proceedings: Conduct a search to ensure the company has not been involved in any legal disputes or lawsuits.
Company Name:
Availability: Check if the company name can be changed to suit your business.
Trademark: Ensure the name does not infringe on any existing trademarks.
Transfer of Ownership:
Legal Procedures: Understand the legal procedures for transferring ownership of the company.
Costs: Determine all associated costs, including legal fees, stamp duties, and any other applicable fees.
Advantages of Using a Ready-Made Company:
Faster Setup: Avoid the time-consuming process of incorporating a new company.
Established History: Can enhance credibility and trustworthiness, especially when dealing with clients or lenders.
Potential Tax Benefits: In some cases, an aged company may have access to certain tax benefits.
Easier Financing: Lenders may be more comfortable lending to an established company.
Disadvantages of Using a Ready-Made Company:
Potential for Hidden Issues: Thorough due diligence is crucial to uncover any potential liabilities or legal issues.
Name Change Requirements: You may need to change the company name, which can involve additional costs and procedures.
Limited Control over History: You may not have complete control over the company's past activities.
Higher Costs: Acquiring a ready-made company can be more expensive than incorporating a new one.
Remember:
Prioritize Due Diligence: Conduct thorough research and due diligence to minimize risks.
Understand the Costs: Factor in all associated costs before making a decision.
By carefully considering these factors and conducting thorough due diligence, you can make an informed decision about whether a ready-made company is the right choice for your business in Singapore.
How Bestar can Help
Bestar plays a crucial role in assisting with the acquisition and management of a ready-made company in Singapore. Here's how:
Due Diligence: Conduct thorough due diligence on the ready-made company, including background checks, financial audits, and legal compliance reviews.
Strategic Planning: Advise on how to leverage the established history of the ready-made company to achieve business goals.
Operational Setup: Assist with setting up operations, including obtaining necessary licenses and permits, and establishing banking relationships.
Market Entry Strategies: Develop strategies for entering the market and building brand awareness.
Legal Compliance: Ensure compliance with all relevant laws and regulations, including company law, tax law, and employment law.
Contract Negotiation: Assist with the negotiation and drafting of the purchase agreement and other relevant legal documents.
Ownership Transfer: Guide through the legal process of transferring ownership of the company.
Legal Risk Mitigation: Identify and mitigate potential legal risks associated with the acquisition.
Financial Assessment: Analyze the financial viability of the ready-made company and its potential for future growth.
Funding Strategies: Assist with securing funding for the acquisition and subsequent business operations.
Tax Planning: Advise on tax implications of the acquisition and ongoing operations.
Financial Management: Provide guidance on financial management best practices, including budgeting, cash flow management, and financial reporting.
Integrated Approach: Offer a comprehensive range of legal and financial services, providing integrated advice on complex matters.
Holistic Perspective: Consider the legal and financial implications of decisions, ensuring a well-rounded and informed approach.
Streamlined Services: Provide a single point of contact for both legal and financial needs, streamlining the process and improving efficiency.
Key Benefits of Engaging Bestar:
Reduced Risks: Minimize risks associated with acquiring a ready-made company.
Enhanced Efficiency: Streamline the acquisition and setup process.
Improved Decision-Making: Make informed decisions based on expert advice.
Increased Success: Enhance the likelihood of achieving business goals.
By utilizing the expertise of Bestar, businesses can navigate the complexities of acquiring a ready-made company in Singapore and increase their chances of success.
Comments