You must have learned in your business subject that there are different types of companies in Singapore. Out of all the types, we have Shelf Companies which are also called ready-made companies. If you wish to know more about Singapore Shelf Company for sales then AI Accountant Chai Chung Hoong is here to brush up your knowledge.
WHAT IS A SHELF COMPANY?
Before we move onto any further details, let us first learn the definition of a shelf company. These types of companies stay dormant since the time they are founded. However, it is a fully operational legal business entity. It is also popularly known as an aged corporation. If you intend to buy such a company then look for Shelf Company for sales.
A shelf or an aged company is purposely left to age until the time it is bought by a buyer to be used for its intended purpose. A shelf company may stay dormant but it has to follow all the statutory requirements in compliance with The Companies Act Section 157 Chapter 50. This is important so that it can start operating immediately and follow all laws and Penal Code Section 410.
ADVANTAGES OF A SHELF COMPANY
A shelf company has a lot of benefits to offer. Take a look at the pointers given below to get an idea.
- A shelf company is already registered which means you don’t have to go through the long process of registering it. Once you acquire it, the company is ready for operation from that very moment.
- Anyone desperate to start a business right away can go for shelf companies. This is not only time saving but also saves a lot of money.
- Shelf companies are great options for business owners who want to make certain changes and modifications to their business activities or company name.
- If you want to buy a mature company that has no liability then shelf companies are the only option you have.
- When you opt for a shelf company, you become more eligible to get a business loan from the banks. This will help you to gather funds to start your business.
- With a shelf company, you can also attract potential investors to invest in your business. They prefer an older and established business over start-ups any day.
DRAWBACKS OF A SHELF COMPANY
Apart from all the benefits, it also has some drawbacks. Before you think of getting a shelf company, take a look.
- It may cost you more as it comes with a matured status with zero liability.
- Investors don’t get the chance to choose the company structure type right after the registration process.
- Investors are also deprived of enjoying the government’s tax benefits that are given to newly established companies.
To conclude, it can be stated that Shelf companies have both its ups and lows. However, if you take a look at the bigger picture when buying a shelf company is more profitable. After all, you cannot ignore the fact that it comes with a matured status with no liabilities at all. Contact AI Accountant Chai Chung Hoong now if you are interested in purchasing shelf company for sale. Chai Chung Hoong can help refer you to a partner to help you buy a Shelf Company Singapore.