Most entrepreneurs, when they opt for a Singapore business registration, start a private limited company. However, depending on your business needs, the risk involved, and the liability you are ready to commit to, you can also use other business structures.
Most entrepreneurs, when they opt for a Singapore business registration, start a private limited company. However, depending on your business needs, the risk involved, and the liability you are ready to commit to, you can also use other business structures.
Choose the Right Legal Structure
In addition to a private limited company, you can also form your business as a Sole Proprietorship or Limited Liability Partnership (LLP). You need to be careful here, as your choice can impact your liability and tax amount. It can also affect a business' tax amount, branding, credibility, and fundraising ability.
Singapore government helps new businesses in their initial days. The government offers them various grants and tax incentive and help them take roots. The low corporate tax rate lowers their overhead costs. This support gives them a breathing space to find a foothold or a niche to cling to.
You can claim these benefits for your business only if it is a locally registered private limited company. You also need to maintain their management in Singapore.
How to Register a Private Limited Company
You need to apply to the Company Registrar of Singapore to register your company. A government agency named Accounting and Corporate Regulatory Authority (ACRA) acts in this capacity.
For your Singapore business registration, a company or a business firm like a sole proprietorship or an LLP, you need to apply to ACRA. If you are a foreigner, you can appoint a Singapore business registration services provider to take care of the task.
The process for Singapore company registration is streamlined and has only two procedures.
1# Get Company Name Approved from ACRA
You need to choose a unique, meaningful, and decent company name. It will improve the chance of getting it approved by the ACRA. If you have appointed an agent to form your business, send them a list of 3-7 company names.
Their experts will check the names for availability on the ACRA's website. They will register the available company name by paying an official fee of S$15.
2# Apply for Singapore Company Registration
ACRA acts as the Company Registrar of Singapore. And you need to apply to ACRA to register your business. You must submit all incorporation and KYC documents along with your application. You also must pay an official fee of S$300 in processing fee.
ACRA may take 1-3 days to process your application. After the successful Singapore business registration, ACRA sends you an email. You can use it as an Incorporation Certificate in Singapore. It contains details of your newly registered company like; Unique Entity Number (UEN), business profile, Etc.
If ACRA forwards your application to a Ministry, it may delay the approval by up to 2 months.
Pre-Incorporation Requirements
Before you decide to initiate the Singapore business registration process, you must fulfill a few of the pre-incorporation criteria. They are as listed below:
Company Shareholders
You need at least one shareholder to start your private limited company. It can have up to 50 shareholders. A shareholder in a company can also be its director.
An individual, a company, or a trust can be a shareholder in a Singapore company. If you are the sole foreign shareholder, then Singapore allows you 100% shareholding in your company.
Local or Resident Director
You need to appoint at least one resident director who is ordinarily a resident of Singapore. You can appoint a Singaporean citizen, permanent resident, or an entrepreneur or employment pass holder.
You must also see that the appointee is over 18 years of age and is not bankrupt or has a criminal history.
Company Secretary
As per the Company Act, you must appoint at least one company secretary within six months of the formation of your company. You need to select a qualified and experienced individual who knows the Company's Law and is ordinarily a resident of Singapore.
You can appoint a Singaporean or permanent resident or a holder of employment, entrepreneur, S, or a dependent pass. A sole director of a company cannot be its company secretary.
Minimum Initial Paid-Up Capital
You need S$1 in the minimum initial paid-up capital for your Singapore business registration. You can increase the company's capital at any point in time after the formation of your company.
Local Registered Address
You must provide a registered physical address in Singapore for your company office. It has to be an address of a residential or commercial place. P.O. box address is not valid.
Simplify Your Singapore Business Registration
Many local business owners appoint a Singapore business registration services provider for the task. Many a time, they choose a registered filing agent.
These agents are authorized to interact with government agencies, submit documents, and pay the official charges. They have incorporation experts to advise you on your business formation and simplify it.
If you do not have a local director, your provider can arrange a nominee director. You can also pay these firms for a local registered address or a company secretary. They may also assist you in opening a corporate bank account for your new company.
Singapore is a great business hub to start your new business. It ranks in 2nd place for the 'Ease of Doing Business.' It is the reason why Singapore business registration is popular. It is a fast process, and you need only 1-3 days to form a new business in Singapore.
Please send us a mail at info@sbsgroup.com.sg or call us at +65 6536 0036 to know our Singapore business registration packages.
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