Singapore: a ready-made company with a bank account 2022
If you want to enter the Asian market, we suggest buying a ready-made company in Singapore with a bank account. It is a reliable, politically stable jurisdiction known for low corruption, modern infrastructure, and high-quality offshore banking. A big advantage is that the companies registered there do not pay taxes if they make a profit in another country.
The advantages of buying a business in Singapore
Singapore is a renowned international center of trade, finance and technology. It often tops the rankings of "best country to invest in", "smartest city", "fastest", etc. In many respects Singapore is a winner due to low tax rates for offshore companies and the lack of bureaucracy. As stable political and economic climate, advanced infrastructure, and solid banks are also among its advantages.
Singapore is excellent for trade and import/export of goods. It has excellent connections with Thailand, Cambodia, Indonesia, the Philippines, and Malaysia, while the local airports and seaports have cemented themself among some of the best in the world.
Singapore is known for the following tax incentives:
- single-tiered tax system;
- no tax on profits earned abroad;
- no tax on capital gains;
- entrepreneurs do not pay tax on dividends;
- absence of inheritance and gift tax;
- simplified tax reporting procedures;
- the opportunity to avoid having to pay taxes in their own country, if Singapore has signed a tax treaty preventing double taxation.
English is widely spoken in Singapore, so there will be no problems with translators. The country also boasts a highly skilled and productive workforce.
Why it is better to buy a business
It takes a few months to open a company in Singapore. You have to:
- prepare documents;
- get registered with ACRA;
- open a bank account;
- hire a local director and secretary who must be a resident of Singapore.
There is no need to develop constituent documents if you are buying a company. They are already prepared, and it's much easier and faster to make the necessary changes. For example, you may need to specify the legal address, appoint the new employees (secretary and directors), change registered capital, and report all updates to ACRA.
It is important to know that banks are carefully examining potential customers, and the procedure may take a month or two. Buying a company in Singapore with a bank account will allow you to start working immediately.
How to choose a company
Here is an important nuance: if you do not want to spend a lot of time checking the business, you should buy a shelf company. This is what they call a company that's been incorporated, but didn't operate a single day. This means you don't have to worry that it has hidden debts, a criminal history, and black marks on its record. So if you choose to buy a company with an untainted reputation, you will be able to start working immediately, having all the necessary documents, seals, registration certificates, etc.
When buying a shelf company in Singapore, pay attention to its declared type business activity and also its age. The older the company is, the more likely it is to have customers and get a loan from the bank.
What is included in the purchase
Companies for sale usually have:
- a registered capital of S$1;
- a locally resident nominee secretary;
- a nominee director;
- one shareholder who holds 1 share.
A bank account is usually not included in the purchase agreement, so we recommend discussing this issue in advance if needed. The sellers are usually very cooperative and they will probably open an account for your business. But if there is no time to wait, you can choose a ready-made company with a bank account immediately.
How to buy a business in Singapore
To buy a promising business in Singapore 2022, contact IT-OFFSHORE consultants.