How much is a singapore shelf company + bank account worth?

[soleil1]

Hello to all

A friend has offered to sell 100% ownership in a currently dormant 5 year old Singapore company + a bank account at a very reputable Singaporean bank. How much should one reasonably pay for it?

I understand that as a non resident of SG the buyer would need a local director. And no need to discuss whether an SG company makes sense or not. My question is only about the monetary value of an SG shell company + bank account.

Thanks!

 

[Sols]

It's wort whatever you're willing to pay for it. Unless there is added value somewhere, I wouldn't pay more than what it costs to form a new company.

A new company in Singapore (without local director) is usually a few thousand SGD at the most. Thanks to healthy competition and steady demand, you can find very competitive pricing.

There is no guarantee you get to keep the bank account, so the bank account has no inherent value. You will have to undergo new KYC with the bank (which may include a visit to Singapore) and they may close the account if they don't like you.

The company being aged does nothing since it's been dormant. You can't show five years of audited financial statements with meaningful turnover, so other banks, payment processors, and so on aren't going to treat it any differently than a brand new company.

 

[CaptK]

Due to it being dormant unless you want the perception of credibility it doesn't help you. In fact it would be harder to open a bank account than if it were to incorporate a new company.

 

[fshore]

And you'll lose out on the tax credit offered the first 3 years for new companies

 

[JackAlabama]

Not much.
Ditch it and go new.
Maybe that company had a past with (unpaid) loans etc. which you should check as well.
Also you need a pr local director, which is not just having a residence permit but the pr.

 

[soleil1]

Thanks to all for your replies. It was very helpful