Singapore Expats Forum

purchasing a company in Singapore

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.
alufolie
Newbie
Newbie
Posts: 17
Joined: Tue, 16 Apr 2013
Location: Ang Mo Kio

purchasing a company in Singapore

Postby alufolie » Sun, 19 Jan 2014 10:26 pm

hello,

has anyone have experience or can point me in the direction of resources regarding purchasing a local business in Singapore. also what kind of visa would I require to be able to run it and can i retain / continue to employ local employees already working there (there is a manager and a staff member) obviously entrepass is not applicable. I’m currently on my own EP but I’m about to leave my job and will revert to a DP under my spouse’s EP.


thank you in advance.

User avatar
Strong Eagle
Moderator
Moderator
Posts: 10413
Joined: Sat, 10 Jul 2004
Location: Off The Red Dot
Contact:

Postby Strong Eagle » Mon, 20 Jan 2014 3:49 am

The 64 dollar question is: How much were you planning to invest in a business and what type of business?

alufolie
Newbie
Newbie
Posts: 17
Joined: Tue, 16 Apr 2013
Location: Ang Mo Kio

Postby alufolie » Mon, 20 Jan 2014 8:34 pm

a hair salon & approx 50k

AngMoG
Reporter
Reporter
Posts: 609
Joined: Wed, 17 Apr 2013

Postby AngMoG » Mon, 20 Jan 2014 10:58 pm

alufolie wrote:a hair salon & approx 50k
:shock: :shock: :lol:

User avatar
Strong Eagle
Moderator
Moderator
Posts: 10413
Joined: Sat, 10 Jul 2004
Location: Off The Red Dot
Contact:

Postby Strong Eagle » Tue, 21 Jan 2014 1:38 am

alufolie wrote:a hair salon & approx 50k


For $50K, I presume you are purchasing a name, a regular clientele, and a known cash flow?

I have not investigated this in any depth, and... if your entire mission was simply to purchase the business but not actually run any of it, ie, you kept a local manager who runs the day to day and is the one legally responsible for the business, and all local workers do the work, then you wouldn't need any kind of work permit... you are simply investing in a business, and deriving the proceeds thereof.

If, however, you intend to be actively involved, my sense is that you could run into problems with this kind of business. First, under Entrepass applications, hair salons are one class of business that are specifically excluded from consideration, and while you are not going the Entrepass route, it seems that the authorities seem to think businesses of this type are reserved for locals.

OTOH, since you investing in the business, and will keep local workers, it just might fly, especially if you could provide demonstrable evidence that if you didn't buy the business, the workers would lose their jobs. The only way you would know this would be to create a sole proprietorship or private limited, then apply for your own EP, explaining that the whole purpose is to buy and build an existing business.

As far as brokers are concerned, I don't think you'll find much in this kind of small potatoes market. There are about 20 gazillion hair salons in Far East Plaza alone, and twice that many everywhere else. They open and close with regularity. There is a low barrier to entry. If you really want to do this... and I can't imagine why, given the numbers here, I'd suggest that you begin by canvassing the areas in which you would be interested in setting up shop... I wouldn't be surprised if you found someone wanting to sell out or at least a partner.

Kicks81
Newbie
Newbie
Posts: 2
Joined: Tue, 18 Feb 2014

Postby Kicks81 » Tue, 18 Feb 2014 2:32 am

Does it offer any advantage for a local Singaporean to partner for a startup business?

Jerry_SG
Newbie
Newbie
Posts: 1
Joined: Wed, 19 Feb 2014
Location: Singapore

Postby Jerry_SG » Wed, 19 Feb 2014 12:13 pm

I believe it will help a little. At least the local know this island better. :)

User avatar
Strong Eagle
Moderator
Moderator
Posts: 10413
Joined: Sat, 10 Jul 2004
Location: Off The Red Dot
Contact:

Postby Strong Eagle » Wed, 19 Feb 2014 10:31 pm

Kicks81 wrote:Does it offer any advantage for a local Singaporean to partner for a startup business?


Partner with whom?

alufolie
Newbie
Newbie
Posts: 17
Joined: Tue, 16 Apr 2013
Location: Ang Mo Kio

Postby alufolie » Sat, 22 Feb 2014 4:15 pm

hello i'm just updating my thread. I have an appointment with MOM but it's not for another week and was just wondering if anyone has some wisdom to share.

so in addition to this original post, I partnered with a friend who is a local and we have a sole proprietor business we bought through a hotel here in SG. we're both principals of the company... when I look at our Bizfile, ACRA determines the type of company as a partnership.

I'm still on a letter consent at the moment, working at my usual 9-5 day job which I've given notice to finish in 6 weeks. At the business we've purchased, we have existing staff (4 PRs) at the business that we want to retain but they need extensive re-training and it's something that I need to do however I'm assuming I need a visa to do this.

I know that you can register a new sole proprietor through a LOC but can I apply for a letter of consent on a DP under this company when I'm also the principal? Thanks :)

Kicks81
Newbie
Newbie
Posts: 2
Joined: Tue, 18 Feb 2014

Postby Kicks81 » Mon, 24 Feb 2014 1:51 am

Strong Eagle wrote:
Kicks81 wrote:Does it offer any advantage for a local Singaporean to partner for a startup business?


Partner with whom?


I am a singaporean who is looking for opportunity to partner up with someone who is interested to start up a small business.some of you may, be on EP,have profitable ideas but were unable to register a business. With my local citizenship it should solve any registration problem.TS seemed to have found someone to work with, so I guess my offer to aid is no longer helpful.

User avatar
Strong Eagle
Moderator
Moderator
Posts: 10413
Joined: Sat, 10 Jul 2004
Location: Off The Red Dot
Contact:

Postby Strong Eagle » Tue, 25 Feb 2014 2:28 am

Kicks81 wrote:
Strong Eagle wrote:
Kicks81 wrote:Does it offer any advantage for a local Singaporean to partner for a startup business?


Partner with whom?


I am a singaporean who is looking for opportunity to partner up with someone who is interested to start up a small business.some of you may, be on EP,have profitable ideas but were unable to register a business. With my local citizenship it should solve any registration problem.TS seemed to have found someone to work with, so I guess my offer to aid is no longer helpful.


The problem you will run into is that the person you would partner with, could, at most, only be an investor, share in the profits, and unofficially share ideas with you to be implemented.

Anything else would constitute "employment" and would require a work permit.

Also, any person can start a business or company, and that includes work permit holders. They just can't work for them without a valid work permit.

taxico
Director
Director
Posts: 3148
Joined: Sat, 10 May 2008
Location: Existential dilemma!

Postby taxico » Thu, 27 Feb 2014 11:51 am

alufolie wrote:a hair salon & approx 50k


does the majority of 50k make up a "takeover" fee? if so, let it be known that should the landlord be HDB, your lease cannot be reassigned to someone else after you've taken over it.

so if your business does not do well, then...
Aut viam ad caelum inveniam aut faciam


  • Similar Topics
    Replies
    Views
    Last post

Return to “Business in Singapore”

Who is online

Users browsing this forum: khanmehh and 1 guest