Shelf Companies in Singapore: What They Are, Their Legal Status, and Why We Don’t Recommend Them
Shelf companies are legal in Singapore, but the premium price rarely justifies the due diligence gaps. Here is what to check before buying one.
Shelf companies are legal in Singapore, but the premium price rarely justifies the due diligence gaps. Here is what to check before buying one.
New business owners in Singapore often assume that once ACRA has approved their company name, their brand is protected. It is not. Company name registration with ACRA and trademark registration with the Intellectual Property Office of Singapore (IPOS) are two entirely separate systems, and confusing the two is one of the most common, and most [...]
Every Singapore-incorporated company must have a company secretary. This is not a suggestion — it is a statutory requirement under the Companies Act (Cap. 50), and failure to comply attracts penalties for the company and its directors. Yet for many business owners, especially those new to Singapore, the company secretary role remains poorly understood. This [...]
Every director of a Singapore company takes on a significant set of legal obligations the moment they are appointed. These duties exist to protect the company, its shareholders, and — in some circumstances — its creditors. Yet many directors, particularly those appointed to nominee or non-executive roles, underestimate just how demanding these obligations can be. [...]
When a new company is incorporated in Singapore, one of the most valuable — and often overlooked — benefits is the Start-Up Tax Exemption Scheme (SUTE). For the first three years of assessment, qualifying new companies pay significantly less corporate income tax, allowing them to reinvest more of their profits into growth. This guide explains [...]
An Employee Share Option Scheme (ESOS) gives employees the right to purchase shares in the company at a fixed exercise price, usually at or below the market price at the time of the grant. If the company grows, the shares become more valuable — and exercising the option at the original lower price lets the [...]
Every Singapore company incorporated under the Companies Act (Cap. 50) must file an annual return with ACRA each year. The annual return is a statutory snapshot of your company's key information — its registered office, directors, shareholders, share capital and financial year end — filed through BizFile+. It is separate from and in addition to [...]
Allotting new shares is one of the most significant decisions a Singapore company can make. Whether you are raising capital from an investor, rewarding a key employee with equity, or restructuring your shareholding structure, a share allotment permanently changes the ownership composition of your company. Done correctly, it is a straightforward process governed by the [...]
Singapore companies sometimes accumulate more paid-up capital than they need for their operations — capital that has been eroded by losses, or surplus capital that shareholders wish to return to themselves. In these situations, a capital reduction is the formal legal mechanism for reducing a company's share capital in a controlled and lawful way. Under [...]
When founders and investors sit down to negotiate equity terms, preference shares are often the central instrument of discussion. Unlike ordinary shares, preference shares carry special rights — typically priority dividends and a preferential return of capital on winding up — making them the instrument of choice for investors seeking downside protection without sacrificing upside [...]