Buying back shares
Understand share buybacks, how to file a notice of purchase or acquisition, and the difference from share capital reduction.
Last updated 29 January 2026
Note: Share transactions are complex and errors can be costly. If you are unsure about share matters or how to file the correct share transactions in Bizfile, seek professional advice from a corporate service provider (CSP).
If you make an error during filing and cannot resolve it by filing a Notice of Error, you may need to obtain an Order of Court to amend the error.
Understanding share buybacks
Your company can buy its own shares back from shareholders. This is called a share buyback (or repurchase). After a share buyback, your company can either cancel the shares or keep them as treasury shares.
Most companies buy back shares when they have excess capital that is not needed for business operations.
Benefits of share buybacks
Share buybacks can help to:
Improve key financial ratios, like earnings per share (EPS) and return on equity (ROE)
Make your shares more attractive by reducing share supply and taking advantage of undervalued shares
Reduce overall cost of capital
Funding share buybacks
Most companies use their capital and profits to fund share buybacks.
When profits are used for buybacks, less money will be available for dividend payments in the future.
Types of share buybacks
Both listed and unlisted companies may buy back their shares at any time.
Types of share buybacks
Type | What you need to do |
|---|---|
Off-market purchase | Get members' approval at a general meeting first. |
Selective off-market purchase | Pass a special resolution to approve the purchase first. Note: Shareholders selling their shares cannot vote. |
Contingent purchase contract | Pass a special resolution to approve the purchase first. |
(Listed companies only) Market purchase | Buy shares directly on the Singapore Exchange. |
Share buyback versus reduction of share capital
Key differences
Share transaction | Key differences |
|---|---|
Share buyback |
|
|
More details: Section 76B to 76G of the Companies Act 1967
Filing a notice of purchase or acquisition
This guide explains how to file a notice of purchase or acquisition when your company completes a share buyback. You may need to file this notice, depending on your company type.
Filing requirements
Company type | Requirements |
|---|---|
Private companies |
|
Public companies |
|
Who may file
Company officers (such as the director or company secretary) can file directly.
You may also engage a corporate service provider to file on your behalf.
Fees and processing time
File notice of purchase or acquisition
What you need to know | Details |
|---|---|
Fees | Free |
Approval time | Immediate |
How to file
Open the General lodgement eService and log in.
Select File notice of purchase or acquisition of ordinary/preference shares/stocks.
Complete the required information.
Submit your filing.