Singapore has been ranked very highly for the ease at which a new business can be started in the country. Singapore has also received several accolades for its business-friendly policies.
A robust economy, a reasonable tax system with low tax rates, an efficient process for incorporating and running a new company, a strategic geographical location, and well-developed capital markets and financial system are just some of the factors that make Singapore a very attractive place for incorporating a new company.
Being one of the best Asian countries to do business, investors and entrepreneurs find Singapore very attractive. Foreigners who are interested in registering a Singapore Company need to consider the following process.
Registering your business in Singapore
There are several things worth deciding before embarking on the journey of business registration in Singapore and it generally entails the following.
Decide on the type of business entity
When starting a business registration process in Singapore, you must first specify the relevant company type.
The most generally used types of business in Singapore are:
- Sole-proprietorship: a sole-proprietorship is a business owned by one person. The sole proprietor has full say in the running of the business.
- Ordinary business partnership: a partnership in Singapore is a business firm formed by a minimum of 2 partners and a maximum number of 20 partners.
- Limited partnership (LP): a Singapore partnership consists of 2 or more partners where at least 1 partner is a General Partner and 1 is a Limited Partner.
- Limited liability partnership (LLP): limited liability company in Singapore is a partnership where the partners’ liabilities are generally limited.
- Private company limited by shares: this is a legal entity that is separate and distinct from its shareholders and director. Under this company, there are three distinct forms – Exempt Private Company, Private Company, and Public Company.
Select a name for your company
Every Singapore business requires a name to differentiate itself and to make it easy for others to find it. The company name selected must be unique, unreserved, and not obscene. Singapore company law also requires that the company must have its name authorized separately before it can be incorporated.
Choose your business activities
When incorporating, every business in Singapore must select an SSIC (Singapore Standard Industrial Classification) code intended to describe the intended business activity. SSIC codes are used as a means for Government Statistics purposes.
Licensing
Some SSIC codes, company names, and business activities are prohibited and require the application of a license before being able to conduct business. Once the business activities have been decided, it is worth checking whether they require licensing.
Decide on shareholders
A Singapore company must have between 1 to 50 shareholders(depending on the business structure. A shareholder can be a person or a legal entity. Also, Singapore permits 100% foreign ownership of Singapore companies.
Decide on officers in the company
The next step is to decide who will be appointed officers in the company. And at the time of registration, their identification details, contact information and residential addresses must be provided.
Officers of a Singapore company include:
- Directors: directors must be individuals who have not been disqualified to hold a directorship in Singapore or elsewhere. Also, at all times you will need at least one local resident director.
- Company secretary: every Singapore company must appoint a company secretary. This individual will help the directors to prepare and file all essential documentation to keep the company compliant.
- Chief executive officer and/or managing director (not compulsory): company can choose to appoint a chief executive officer and managing director to manage and oversee all or part of the company’s business.
- Auditor: unless the company has been exempted from audit, within three months of registration, every Singapore company must appoint an auditor.
Decide on the registered address
The address that is chosen for the company must be located in Singapore and must be a physical address.
Decide on the company articles of corporation
The articles of corporation of a Singapore company are a legal document that sets out the details of the important characteristics of the company, statutes, and regulations of its governance describes how the operations are conducted, and specifies the rights and obligations of the company’s shareholders, directors, and company secretary.
Registering the company
Once all of the requirements above are fulfilled, the next step is official registration. To register your business in Singapore, you must first make sure that your appointed name is approved by ACRA (the Accounting and Corporate Regulatory Authority), which manages company registration in Singapore.
Once the name is approved, the process of filing the paperwork and obtaining final approval from the ACRA can then be done.
Post-registration requirements
Once the company is registered, you can then move forward to the post-registration activities which include buying a company seal, opening a corporate bank account, registering for goods and services tax, and setting up a bookkeeping and payroll system.
If you are a foreigner wishing to start a business in Singapore, you will need to hire a professional to file on your behalf.
Incorporating in Singapore is a powerful choice when deciding to enter the Asian market. Contact your Damalion expert now to setup your company in Singapore.
