Importance Of Shelf Companies In Singapore

Shelf companies in Singapore are becoming an increasingly popular way by which foreign entrepreneurs gain quick access to the Singapore market

. Importance of such companies has been rising gradually and today many incorporation service providers in the country also have a portfolio of shelf companies to offer to their clients. To learn the importance of such companies, first let us understand what exactly a shelf company means.

To put it in simple terms, it is a company created by someone purely for sale to a foreign entrepreneur. These companies are incorporated in Singapore with the minimum paid up capital requirement of SGD $1 and then no transactions are done after registration. They are kept without any business operations until someone from overseas decides to buy them. Shelf companies usually have only one shareholder and the shares are immediately transferred to the foreign owner after purchase. Of course while there are no transactions in such companies, the current owner must ensure that all mandatory compliance requirements are met. This includes having a local resident director, a company secretary, having a registered local business address and also filing returns each year.

So why would anyone buy such a company in Singapore? This is where its importance lies. By purchasing a shelf company in the country, a foreign entrepreneur does not have to go through the entire incorporation procedure of a new company. They gain access to the Singapore market almost instantaneously as buying such companies and then getting the shares transferred is an extremely simple process in Singapore. Foreign business owners do not have to waste time arranging for all required documents for new company formation and at the same time, they do not have to go about meeting the mandatory statutory requirements of a new company setup. Everything is already done for by the creator of the shelf company and all the foreign company needs to do is to take over and start their business activities.

Of course if the name of the shelf company is not suitable to the current business owner, then they would have to apply for name change and also a call would need to be taken on whether the current nominee director and company secretary would continue in their roles or be replaced. However, even while this process is taking place, at least the foreign owner can start with their business activities in Singapore and gradually change whatever they feel like in the shelf company they bought.

by: Bryan Wong

POST COMMENT

A Home Based Job Inside Your Office Conservatory Applied Medical Resources Corporation - Strategic Swot Analysis Review Juicing - Understand How Rewarding Juicing Vegetables And Fruits Are For Your Well Being Unsecured Loans- Financial Relief To Tackle Your Monetary Needs Benefits Of The On-line Stock Investing If You Have An Air Conditioner, Montgomery, Alabama Has The Answer Value Investing: Lifeblood Of Investment Analysis Spiritual Expansion - How To Truly Be Heard How Music Can Enhance Your Life Boden's Guide To Male Modelling Dental Procedures And St. Paul Minnesota Dentists Expertise Can The Htc Radar Outshine The Sony Ericsson Xperia Ray Wall Wash Led Lighting For Trade Show Displays