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Buying a Company in Singapore

Buying a Company in Singapore

Acquisition of companies in Singapore

Companies wanting to grow or expand their activities can do so by investing more in the business or by purchasing another entity. During the last years, the most common way of raising a company has become buying another business. In Singapore, acquisition of other companies is regulated by the Commercial Law in the first place, and by the Take-Over Code and Competition Act in the second place. The last two laws refer to mergers and acquisitions in Singapore. The Government also grants an allowance for purchasing another company and our Singapore company formation agents can give you more details about this matter. In the case of small and medium-sized enterprises the allowance is 25% of the value of acquisition.

For information about the M&A legislation and the governmental allowance, you can refer to our specialists in Singapore.

Ways to purchase a company in Singapore – presented by our specialists who can help you open a company in Singapore

There are two ways of buying a company in Singapore:

  • – by acquiring the business and its assets, also known as an asset deal;
  • – by acquiring the majority of shares in the company, also known as a share deal.

The main difference between the two means of buying an enterprise is that when taking over another company’s business the buying company will only acquire its assets without the liabilities, while when acquiring shares in another entity, the liabilities are also included in the deal. Our consultants in opening companies in Singapore can help you acquire or buy shares in a local company.

There are several factors influencing the type of deal when acquiring a Singapore company, and one of the most important is taxation.

The steps to buy a company in Singapore

Our Singapore company formation agents present the main steps to follow when buying a company in Singapore:

  • – structuring the transaction;
  • – the due diligence procedures;
  • – detailing the terms of the sale;
  • – signing the deal;
  • – approving the deal.

In Singapore it is also a common fact for contracting parties to sign a memorandum of understanding or a letter of intent and even a confidentiality agreement before organizing the transaction. The procedure for acquiring a company listed on the Stock Exchange is more complex.

If you need assistance with the procedure of buying a company, do not hesitate to contact our company registration agents. We can also help businessmen open companies in Singapore.

One of the most popular options in terms of setting up a company in Singapore is limited liability company. This business form is used in most countries around the world and the Singaporean one uses many of the features of the same entity used in nations like the United States and the United Kingdom, for example.