Benefits of Shell Company in Singapore
Singapore has flexible laws when it comes to opening and running a company. For people who don’t want to incorporate a firm, they have the right to invest in a shell company.
What is a Shell Company?
A shell company is a company that has been registered but isn’t in operations. The legal paperwork for the company exists, but it doesn’t have any employee or office.
The purpose of a shell company is to sell it to people who want to start their own business, but don’t want to spend time or resources registering a new company. It is for people who want to start business transactions as soon as possible.
The Benefits of Shell Company for Foreigners
According to accounting expert Chai Chung Hoong, shell companies are most popular among international investors in Singapore. As foreign investors don’t have a lot of knowledge about the incorporation and the legal requirements, they proceed to buy a shell company.
Things that You Need to Start a Business in Singapore
You will need the following things to start a company in Singapore:
- A resident director
- A resident secretary
- From 1 to 50 shareholders
- A registered address
That’s another benefit of a shell company. It already has a director, a registered secretary, and a registered address. Well, as per the norms, the director, secretary, and registered address changes when a new owner buys the business. However, the firms that sell shell companies also provide nominee directors, secretarial services, and a virtual office. So, you don’t have to worry about the above things.
Make sure you only use a verified source to look for Shell Company for Sale.
Do I Need to Hire a Director and a Secretary for a Shell Company?
Some investors may ask- if the shell company has already been registered and secretary and directors have already been shown in the paperwork, do I actually need to hire them? The answer is yes. Every company in Singapore needs to do an annual audit and the director has responsibilities like filing the returns to ACRA and IRAS (for tax). If you haven’t hired a secretary or director, it will be seen during the audits.