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A Comprehensive Comparison between Shelf Company and New Setup in Singapore – Which Is Best for Your Business?

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A Comprehensive Comparison between Shelf Company and New Setup in Singapore – Which Is Best for Your Business?

September 24, 2025

Summary

The article compares setting up a new company in Singapore with buying a shelf company. Shelf companies allow immediate operations and offer credibility but come at higher costs and with limited flexibility. New setups give full control, lower costs, tax incentives, and branding freedom, though the process takes slightly longer. The right choice depends on business goals, urgency, and compliance needs.

As an entrepreneur or company head, starting a business is exciting. One of the first decisions any business faces is to decide whether they should be buying a ready-made company or setting up a brand-new entity. Both these options are popular among entrepreneurs and have their own advantages. However, the most appropriate choice depends on the overall goals, urgency, and the extent of control the owner wants on the company structure.


In this blog, we have comprehensively weighed these two options. Read on to fully understand what each of these business structures means for business entities.

Comparing a Shelf Company Vs. New Setup

Shelf Company: A pre-registered, dormant company that has never traded. Its basic requirements such as a shareholder, resident company secretary, nominee directors, and statutory documents are already in place. Once acquired, ownership is transferred, and the business can start operating immediately.


New Setup: Incorporating a company from scratch. You’ll have full control over every detail, from the company name to the shareholding structure. While this process takes a little longer, it ensures the entity is fully customised to your business needs.

Why Consider a Shelf Company

The most significant advantage of a shelf company is its speed. Businesses can bypass the lengthy process of getting the organisation incorporated. Some of the other benefits include:

Established Incorporation Date

An older company seems to have a longer track record, which adds credibility to the organisation. This helps businesses secure partnerships or loans. Some banks prefer established companies with an existing history.

Ready Documentation

Essential documents such as the Incorporation Certificate, Registers, filings with ACRA and IRAS, Constitution, and agreements entered, if any are already in place—requiring only minor tweaks.

Immediate Operations

Businesses can sign contracts, open bank accounts, and conduct commercial activities as soon as ownership is transferred. However, the cost associated with the establishment of shelf companies is higher compared to registering a new business, particularly for older entities. You may also lose some flexibility in structuring your company, and won’t be eligible for tax incentives reserved for newly incorporated companies.

Why Start a New Company

The best advantage of forming a new company is the complete control that businesses gain from the very first.

These benefits include:

Customisation

Choose the desired type of company, directors, shareholders, and constitution based on the long-term goals.

Save Costs

The fees for incorporating a company are generally lower than the price of a shelf company.

Tax Incentives

Newly incorporated companies enjoy government benefits, including attractive tax exemptions and rebates, which shelf companies cannot claim.

Branding Flexibility

Businesses can choose a name that perfectly aligns with their identity without requiring any formal change.

Making the Right Choice

While deciding between a new incorporation and a shelf company, ask yourself:

  • Do you need to start trading immediately? Shelf companies are quicker.
  • Do you want full control and customisation? New company formation is ideal.
  • Is credibility and an established incorporation date important? Shelf companies offer that advantage.
  • Do you want to benefit from government tax incentives? A new company is better.

For many foreign entrepreneurs, the best solution is consulting corporate services experts who can guide you toward the right choice based on your goals and budget.

Professional Consultation for Buying A Shelf Company

Whether you’re buying a ready-made company or registering a new entity, expert guidance can make the process smooth and worry-free. Shelf company Singapore continues to be one of the most trusted advisory service providers, helping businesses incorporate the companies and handle statutory requirements. The experienced team ensures compliance with the established norms in Singapore.

These consultants assist businesses in choosing the right type of company, manage ownership transfers for shelf companies, and optimise the structure of the organisation to ensure credibility and compliance.

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