Incorporating a company in Singapore takes you to a country where the government is actively supporting business owners from the Small and Medium Enterprises sector.
The national and multinational business entities benefit from the double taxation and other types of treaties that Singapore has signed with other governments to facilitate the trade.
There are two main types of companies in Singapore: private limited companies, where there are less than 50 shareholders, and public limited companies, which have at least 50 shareholders and its shares are made available to the general public.
Entrepreneurs starting new business ventures will typically register their business as a private limited company.
To incorporate your company in Singapore, you’ll need to provide the following documents:
If you are engaging the services of a professional service firm, they will typically require these documents from you in order to prepare the necessary paperwork:-
After you have decided to incorporate a Singapore company, the next course of action will be to register your company. All companies in Singapore are governed by the Singapore Companies Act (Cap 50 of the 1994 Revised Edition of the Singapore Statutes).
There are two ways to get this done: you can a) use the Singapore government’s online portal at www.bizfile.gov.sg to complete the filing and registration requirements yourself; or b) choose the services of a professional firm to do this on your behalf.
The second option is a requirement by law for all foreigners who wish to set up a company in Singapore. Even for local entrepreneurs, due to the legal nature of a company, it’s highly advisable to engage a professional firm to not only manage the initial incorporation but also the on-going statutory compliance for their company.
The company incorporation process in Singapore involves two main steps: (a) registering the company name; and (b) incorporating the company. All Singapore companies are registered with Accounting and Corporate Regulatory Authority (ACRA).
Before a company can be incorporated, you must first secure a name for the company from ACRA. In most cases, the approval process for the company’s proposed name takes 1-2 hours unless the proposed name contains certain restricted words (such as bank, finance, law, media, etc.) or if the name contains certain undesirable words.
A name containing the restricted words might require the review and approval from a corresponding external government authority. If the name is referred to an external authority, the name approval may get delayed by few days or weeks. Therefore, to speed up the process of getting your company name approved, make sure it:
A fee of S$15 is charged for this process by ACRA. Once you have obtained the notice of approval, you will need to incorporate your company with that name. An approved name will only be reserved for 60 days from the date of application, although you can extend the name for another 60 days by filing an extension request just before the expiry date.
The next step is filing the incorporation request and obtaining approval from ACRA. This can be completed in a few hours assuming incorporation documents are ready and have been duly signed by all the persons involved, such as directors and shareholders. Here is a brief rundown of key information and documents required for incorporation of a Singapore company:
A registration fee of S$300 is payable to ACRA at the time of incorporating a private limited company. Once you have completed the entire registration process and received an approval notification from ACRA, your company is legally recognized.
© 2019 StartersCfo. All Rights Reserved