A Step-By-Step Guide to Buying an Existing Business in Singapore
If you’re looking for an alternative to starting a business in Singapore, one good option would be buying an existing one so you wouldn’t have to start it from scratch.
How do you buy a new business in Singapore?
The first step would be to browse for existing businesses which the owners want to sell. Convenient Business for Sales website has an extensive database for all the available businesses for sale and purchase. Browsing through the website is easy, quick, efficient, convenient and straightforward, and that’s why we recommend it. Well, it is the go-to website for many entrepreneurs who are seeking to buy a new business in Singapore to start their entrepreneurial dream.
Once you have found a potential business that you would like to buy, the next thing to consider is whether you would like to take over just the assets of the company or to take over the whole company entirely. This, along with other business decisions you consider must have careful thought and planning going into it. Remember, running a business is a lot of hard work, dedication, and commitment. You will need to push yourself to the limit for success, even if you are buying an old business.
Consider the Existing Risk
Every business has a risk, and it is no different in the case of the one you want to buy. Taking over a company may seem easier than starting from scratch. However, before making the purchase, you will need to consider the losses you can incur. Also, many businesses may have hidden liabilities which you may not even know about. You ‘ll need to show due diligence before making a purchase. Be very thorough and ensure that you know the ins and outs of the business before you put your money down for the sale. Alternatively, you may consider setting up a new company to take over the existing company.
Hiring Staff
After making the purchase, you might rehire new staff in the company or keep the existing staff in place. Both of these measures have pros and cons. Which one you go for depends on your preference and business needs. If you are planning to employ a foreigner in a certain role with your company, you would need to apply for an Employment Pass for the foreigner to be able to work and live in Singapore.
Taxes
Even if the company you intend to purchase is registered for GST, you would still need to reapply for GST because the company now has new ownership. The GST details need to reflect that new ownership and consist of your updated business details.
Legal Matters and Licenses
When you have decided upon the company that you wish to purchase, engage the services of a lawyer to help you craft a Sales and Purchase agreement. You must ensure all the details of the sales comply with the local laws and requirements of buying a business in Singapore.
