While buying a ready-made company in Singapore can have a number of advantages, such as having a ready-made business, established business processes and a customer base, there are also potential disadvantages:
- Limited choice: Finding a company that fits all parameters is difficult. When you buy a ready-made company, you can limit your choices as to what kind of business you want to run and what projects you want to implement, because the company already has its profile and reputation.
- High costs: Depending on the size and condition of the company, the cost of acquiring a ready-made company can be significant and require a large financial investment.
- Risks and Uncertainty: The company you are acquiring may have hidden problems that you may not know about, such as debts, litigation, tax problems, or bylaws. This can lead to additional costs and uncertainty in the future operation of the company.
- Inheriting problems: When you buy a ready-made company, you may inherit problems that were associated with the previous owner, such as image problems, a bad reputation, or other negative factors.
- Limited Choice: When you buy a ready-made company, you can limit your choices as to what business you want to run and what projects you want to pursue, since the company already has its profile and reputation.
- Need for change: When you buy a ready-made company, you may need to make changes to its business model and processes to better meet your requirements and expectations. You are purchasing a company with an existing name, business activities, director and shareholder structure, corporate secretary and registered office address. When the ownership is transferred from one owner to another, from 50% to 99% of the company information will have to be changed in the main registrar of Singapore ACRA.
- Bank account: When purchasing a company with a bank account when directors, shareholders and bank signatories are replaced, a personal interview at the bank with the new signatories and directors will be required. The bank may decide to close the bank account.
- Loss of tax vacations: If you buy a company that is several years old, you can lose tax vacations for companies under three years old
In general, when buying a ready-made company in Singapore, it is necessary to consider all the risks and benefits before making a decision. It is necessary to conduct a thorough analysis of the company's condition, discuss all the conditions with the seller, and get expert advice to make sure the decision is the right one.