Purchase of an Existing Business in Singapore

Singapore is often called the Asian capital of predictability. Here, British law, minimal bureaucracy, and a tax system that motivates businesses to operate rather than find loopholes come together. The government supports entrepreneurs with grants and tax incentives, and foreign investors enjoy the same rights as local ones.

The business environment in Singapore has been stable for decades: there are no currency restrictions, and investments are protected by bilateral agreements with over 80 countries. Unlike many other Asian jurisdictions, Singapore does not offer “offshore opacity,” instead building its attractiveness on trust and legality.

Corporate legislation is clear: shareholders are protected, transactions are transparent, and government agencies act swiftly. All processes – from company registration to tax reporting – are managed through digital services provided by ACRA (Accounting and Corporate Regulatory Authority) and IRAS (Inland Revenue Authority of Singapore).

Corporate tax is fixed at 17%, and there is no tax on dividends or capital gains. New companies benefit from partial exemptions, making the first few years of operations have minimal tax burdens.

Therefore, entrepreneurs from Russia, Kazakhstan, the UAE, and other countries are increasingly choosing Singapore. They value not only the low taxes but also the jurisdiction’s reputation: having a company here opens access to international banks, investments, and reliable partners.

A ready-made company is a registered legal entity without active operations. It already has a registration number with the Accounting and Corporate Regulatory Authority, a charter, an address, and an organizational and documentation specialist. The owner purchases not the business with assets but a tool that can be used immediately after the transaction.

Advantage – Speed. A new registration takes about three weeks, but purchasing a ready-made company allows you to start working within a few days.

This option is often chosen if there’s a need to register a legal entity with minimal time expenditure or to acquire an organization with an “age” – banks and licensing authorities trust companies that have not just been set up yesterday.

Professional consultants check each structure: registration date, financial statements, debts, and corporate document accuracy. Without such a check, risks are too high, especially if the company had a previous owner or operated through nominee directors.

The purchase of an existing business in Singapore is carried out in stages, and each step affects the safety of the deal.

First, due diligence is conducted – checking the legal and tax purity. Financial statements, legal cases, tax status, and ownership structure are reviewed. The goal is to ensure that the company has no debts or hidden liabilities.

Important! Even if the company is “young” and has not been operating, due diligence is still mandatory. Without this check, risks from previous operations, unpaid fees, or fictitious directors cannot be ruled out.

Next, the share purchase agreement is signed. After payment, the administrator submits notifications to the ACRA about changes in shareholders and directors.

Then, information about beneficiaries and the legal address is updated. If necessary, a new resident director is appointed, a bank account is opened, and reporting forms are prepared.

The entire process takes from three to seven business days, including document preparation and electronic filing.

After the change of ownership, the company must open a corporate account with a local bank. This is a mandatory condition for conducting financial activities.

The bank conducts its own KYC (Know Your Customer) check: it analyzes documents, sources of funds, and the business model. Key requirements include the personal presence of the director (or an online interview), providing the charter, share certificate, and purchase agreement.

Foreign entrepreneurs usually open accounts with DBS, OCBC, or UOB. These banks work with non-residents and support multi-currency operations, including USD, EUR, and SGD.

The average account opening time is up to three weeks. With proper document preparation, the process is smooth.

For international companies, this is especially important: having an account in a Singapore bank boosts reputation, simplifies transactions with counterparties in Asia and Europe, and eases access to investment programs. Many clients continue to work with the bank as a long-term financial partner after successfully opening the account.

Financial discipline in Singapore is strict but predictable. The government relies on digital reporting and clear rules. Even foreign companies are required to file returns and comply with tax legislation.

It is important to remember that licenses in Singapore are clearly categorized: they can be obtained on an expedited basis via the online platform LicenceOne. The process takes from a few hours to a couple of weeks, making business startup as predictable as possible.

Corporate tax is 17%. New companies get partial exemptions: the first SGD 100,000 of profit over three years is taxed at a reduced rate. GST (similar to VAT) is 9%, and registration is mandatory for businesses with an annual turnover of SGD 1 million or more.

Reports are submitted to ACRA and stored electronically. Small companies are exempt from mandatory audits. The report must be submitted within 7 months after the end of the financial year.

Important! Late submission of documents incurs fines up to SGD 600 and potential disqualification of the director. Even if the business is not active, reporting still must be submitted on time.

Before purchasing a ready-made company, it’s essential to check whether a license is required for its activities. Some sectors in Singapore are regulated more strictly.

If a license is not needed (e.g., in IT, consulting, or trade), it’s enough to notify ACRA about the change in the director and address. Proper license checks save time and reduce risks of violating the law.

Even in a stable system, it’s important to understand that buying a ready-made company is not just a transaction but a legal procedure. Document errors or unchecked data can lead to account freezes or tax sanctions.

The check doesn’t take much time but saves months or even years if something goes wrong. In practice, large investors delegate audits to independent lawyers and consultants – it’s cheaper than dealing with a blocked account or license revocation. It’s important to remember that Singapore values transparency. Every step of a company leaves a digital footprint, and the more carefully it’s handled, the higher the trust from banks, partners, and government agencies.

Registration through the BizFile+ portal takes 3-5 days. You will need: a name, a legal address, a resident director, an organizational and documentation specialist, and a minimum capital of 1 SGD. After approval, the company receives a UEN number and can begin operations.

The system is fully automated – no paper queues or visits to government offices. For the entrepreneur, it’s a rare case where bureaucracy genuinely works in favor of business. By submitting an application in the morning, you can receive a registration notification by evening.

For foreign investors, registration can be done through a local representative. The procedure is entirely electronic, and documents can be sent online. Many consulting companies take care of form preparation so the client can focus on the strategy for launching.

Additionally, you can register a corporate office, open a virtual address, and receive mail services – all done remotely. For startups and IT companies, tax grants are available, allowing savings of up to 40% in the first year.

This person is responsible for ensuring compliance with corporate legislation, document storage, filing reports, and organizing meetings. A company cannot function without a corporate secretary.

This is not a formal position but a kind of “legal navigator” for the business. The corporate secretary reminds of reporting deadlines, monitors legislative changes, and helps the owner avoid fines for small mistakes.

They also handle all post-transaction changes: update data about directors, shareholders, and addresses, ensure timely reporting to ACRA. A good secretary is silent in the background while the business operates smoothly, and all documents are always in order.

Buying a ready-made company is a reliable and fast way to start operating on the international market. With the support of experienced consultants, the process takes minimal time and is carried out in compliance with all Singaporean legal requirements.

Singapore remains one of the most favorable jurisdictions in Asia for doing business. It combines transparency, tax flexibility, and high trust in companies.

If you plan to expand, operate in the region, or invest in international projects, buying an existing business in Singapore is a decision that pays off in the first year of operations.

For entrepreneurs, it’s not just a way to "start quickly" but an opportunity to establish themselves in the region with the most reliable legal system and access to the largest Asian markets – Malaysia, Indonesia, China, and India.