A shell company is a company that has been registered but not in operations. It only has the legal paperwork, i.e. the registration certificate but doesn’t have employees or offices. In other words, a shell company is a company that has been incorporated for someone else to buy.
In this short article, we will take a quick look at the advantages of buying a sell company:
No Registration Required
The company has already been registered, so you don’t need to go through the incorporation process. This translates to a lot of your time being saved, as instead of collecting paperwork, documents, and writing applications, you can move on straight to running your company.
Easier to Get Loans, Finances, and Make Tenders
In many cases, banks provide corporate loans only to companies that have been registered for a while. The same goes for other lenders. Also, in some sectors, only companies that have been registered for some time may be able to take tenders. A Shell company is going to be helpful in those cases.
It is only natural that suppliers, banks, and other relations trust an older company than a startup. A shell company is going to give you a heads up during such time. The same goes for clients and customers. Several pieces of research have shown that service seekers like firms that have more experience in solving problems. With a shell company, you show longevity.
Myth: It Is Not Possible to Change the Name of a Shelf Company
Accounting expert Chai Chung Hoong says that one of the biggest misconceptions his clients have about shell companies is that they can’t change the business name. Well, in Singapore, companies can change their names as long as the new name is not vulgar, and the name is not very very similar to other firms.
What are the Things You Need to Run a Company in Singapore?
Well, you can get a Shell Company for Sale, but you will still need to fulfil other requirements to start a business in Singapore:
- The company should have a resident director and a resident secretary. If not possible, you can hire a nominee director and outsource the secretarial.
- At least one shareholder is needed.
- There isn’t a provision for minimum share capital. However, for international investors, your company should make a significant contribution to the Singaporean economy.
- The company should have a registered address. It should be a physical location and not a PO Box Number.