Shelf Company vs. New Incorporation in Singapore: What's Right for You?

Singapore continues to attract global entrepreneurs and investors, thanks to its strong legal framework, low tax regime, and business-friendly environment. If you’re exploring company registration in Singapore, you’ll likely encounter two primary options: buying a shelf company in Singapore or opting for a new incorporation.

Both methods have their advantages, but the right choice depends on your specific business needs, timeline, and compliance goals. In this guide, we’ll compare shelf companies and new company incorporation, breaking down their pros, cons, costs, and ideal use cases.

Let’s help you make the most informed decision for your Singapore company setup.

What Is a Shelf Company?

A shelf company (also known as a ready-made company or aged company) is a legal business entity that has been incorporated and left “on the shelf” with no prior business activity. It's maintained by a service provider for the purpose of future sale.

Characteristics of a Shelf Company in Singapore:

• Pre-registered with ACRA

• No previous business operations

• Comes with a registration number and corporate documents

• It may have been incorporated weeks, months, or even years ago

• Needs a change of directors and shareholders upon sale

What Is New Company Incorporation?

New incorporation involves registering a brand-new company with ACRA, Singapore’s Accounting and Corporate Regulatory Authority. You decide the company name, business activity, shareholder structure, and more.

Characteristics of New Incorporation:

• Tailored to your business structure

• Full control over branding and setup

• Requires standard incorporation steps

• Typically completed within 1–3 days with a corporate service provider

Shelf Company vs. New Incorporation: Key Differences

Advantages of a Shelf Company in Singapore

1. Faster Market Entry

If time is critical—for example, if you’re submitting a tender or applying for a license—a shelf company can help you start operations almost immediately.

2. Established Appearance

Older companies can appear more credible to banks, investors, and partners. This is especially helpful in industries where longevity matters.

3. Immediate ACRA Profile

Some partnerships or tenders require your company to have existed for a specific period. A shelf company meets this requirement from day one.

4. Simplifies Certain Regulatory Approvals

In rare cases, aged companies may have a slight edge in approvals that favor longer-established businesses.

Downsides of a Shelf Company

1. Limited Customization

Since the company is already incorporated, you might need to amend the constitution or structure, incurring extra costs and administration.

2. Higher Initial Cost

Because you’re paying for the company's “age” and maintenance, shelf companies generally cost more than a new incorporation.

3. Due Diligence Required

You must ensure the shelf company has no liabilities, previous activities, or non-compliance. A thorough legal and financial check is essential.

4. Name Change Process

If the shelf company name doesn’t suit your branding, you'll need to go through a renaming process with ACRA.

Advantages of New Incorporation

1. Complete Control

From shareholding structure to company name, everything is built around your business model.

2. Lower Cost

New incorporation fees are usually much lower than shelf company purchases. It’s a budget-friendly option for startups.

3. Clean History

You start with a clean slate—no prior liabilities, obligations, or records to verify.

4. Tax and Grant Eligibility

New companies can often qualify for startup grants, tax exemptions, and incentives more easily than shelf companies.

Downsides of New Incorporation

1. Longer Setup Time (Slightly)

While incorporation is quick, administrative processes like bank account opening and licensing may take a few more days.

2. No Established History

You’ll need to build a reputation from scratch, which can impact early-stage trust with partners or customers.

Which Option is Right for You?

Choosing between a shelf company in Singapore and a new incorporation depends on your business goals and urgency.

Choose a Shelf Company If:

• You need an operational entity urgently

• You’re entering into time-sensitive contracts or tenders

• You want a company with some history or an aged registration

• You’re familiar with the due diligence process

Choose New Incorporation If:

• You value control and customization

• You're budget-conscious

• You're starting a business from scratch with no urgent deadlines

• You want to qualify for startup tax exemptions and government grants

How Much Does Each Option Cost?

Additional services like nominee directors, company secretaries, and registered addresses will add to these base costs.

Singapore Company Setup: What’s Involved?

Regardless of your choice, both shelf companies and new incorporations require the following to stay compliant:

• At least one resident director in Singapore

• A company secretary (within 6 months of incorporation)

• A registered local address

• Annual filing with ACRA and IRAS

• Bookkeeping and tax submissions

Many entrepreneurs use corporate service providers for hassle-free company registration in Singapore. These firms can help you assess whether a shelf company or a new setup aligns better with your goals.

Final Thoughts

Both shelf companies and new incorporations offer valid paths for Singapore company setup. A shelf company can be a powerful tool for fast-tracking operations or meeting contractual timelines. On the other hand, a new incorporation gives you full control and a fresh, clean start.

Your decision should be based on your launch timeline, funding, compliance capacity, and long-term strategy. Engage a trusted service provider to guide you through the compliance maze and ensure your entity, whether shelf or new, is built to last.

Frequently Asked Questions (FAQ)

1. Are shelf companies legal in Singapore?

Yes, shelf companies are fully legal in Singapore. However, ensure the provider offers a legitimate, clean entity with no prior liabilities.

2. Can I rename a shelf company after purchase?

Yes, the company name can be changed through ACRA after ownership transfer, but the process takes a few working days and involves additional documentation.

3. Do shelf companies come with a bank account?

Usually not. You’ll need to open a corporate bank account post-transfer, just like with a new incorporation. Most banks still require a face-to-face verification.