Business transfer in Singapore

Every year about 450,000 companies make business transfers in the world. However, these transfers are not always successful. To transfer your business is a tough decision. You have to consider costs, legal entity changes and possible relocation of employees, etc. The legal type of your business will determine how you change that.

The business transfer can be divided into two key stages: In the first stage, the seller establishes a new company in Singapore and transfers the target business to this company. Second, the seller finds a buyer who acquires equity capital to start owning the new company, thereby becoming the owner of the business. The business transfer can be a profitable business decision and bring you tangible profits in the future. Our economists can advise you on this topic and give you advice on how best to do it in Singapore.

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We will do our best to transfer your business without wasting time and large financial costs. We have the necessary knowledge and experience regarding the transfer of the business in Singapore. Contact us and submit your needs.

Transfer agreement and documents

Transaction documents must include memoranda of understanding (MOU), master agreement, shareholder agreements, and other agreements to affect the transfer of business and the proposed transaction.

It is necessary to describe in detail the status and performance of the acquired business. A list of assets with detailed descriptions of assets, commercial contracts, etc. every single detail should be written in your contract. The right of the purchaser of the business to manage, control, and verify the status of the transfer of business should also be specified. Transactional documents must provide an appropriate mechanism for dealing with these scenarios. And, as with any such transaction, the transactional documents must contain details of how the buyer can take over the management of the business, including the required registration procedure, the appointment of key management positions, decision rules, etc.

Key points of business transfer

To be 100% prepared It is necessary to know all key points to note before the business transfer.

First

You should consider the possibility of transferring each asset that makes up the target business. The ability to transfer, depending on the specific asset, can be critical when considering using the transfer of a business.

Second

Consider whether the business being transferred can be kept running smoothly. In this regard, the transfer of existing contracts should be approached with caution.

Third

Consider the ability and measures to allow the potential buyer to control the transferred business so that any newly arising liabilities are tracked and subject to approval or other control by the potential buyer.

Fourth

Consider the time it takes to transfer the business. Depending on the specific business component being transferred, the business transfer process can take a long time.

Fifth

If a company with a targeted business incurs significant losses that could be deducted by the buyer, or if it currently enjoys special tax breaks that can no longer be obtained by a new company such as New Company, using the business may become undesirable. transfer.

Last

Each situation can be unique and unexpected in some cases and one mistake can cost a huge amount of money. That is why It is better to transfer a business with professional assistance.

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