With a strong economy, favorable tax framework, and a well-established financial system, Singapore presents an attractive environment for incorporating a new business entity.
Singapore is one of the best Asian countries to do business, and investors and entrepreneurs find this country very attractive.
When it comes to registering a company in Singapore, it is important to take into account the following requirements.
Important considerations for company registration in Singapore
To register a company in Singapore, individuals must adhere to the regulations outlined in the Singapore Companies Act. Adhering to these legal requirements ensures a favorable tax framework for the company.
Here are other key points to consider during the registration process:
Selecting a company name
Applicants must choose an appropriate name and electronically submit it for approval via ACRA’s BizFile+ system. Upon receiving approval, the incorporation process can begin.
Choosing the company structure
When registering a company in Singapore, the applicant must determine the appropriate company structure. There are several options available and these include:
Private Company:
- Private company limited by shares
- Exempt by minister private company
Public Company:
- Public company limited by shares
- Public company limited by guarantee
Appointing key personnel
After determining the appropriate company structure, it is important to assign key personnel who will be responsible for the day-to-day operations. The following positions need to be established:
- Director: responsible for managing daily activities, the director must be at least 18 years old, a Singapore citizen, and hold an Employment Pass.
- Chief executive officer: optional position for overseeing daily operations, not required to be appointed with ACRA.
- Company secretary: it is vital to appoint a Singapore citizen as the company secretary within six months of incorporation.
- Auditor: this is another mandatory requirement for the company. But it can be skipped if exempted under the Singapore Companies Act.
Shareholders
For company registration in Singapore, a minimum of 1 shareholder is required, and the maximum number depends on the chosen company structure.
Along with their personal information, shareholders should also provide the total amount paid for their shares.
Office address
During the application process, it is required for the applicant to provide a registered address.This address should be a valid and publicly accessible location, but it doesn’t have to be the operational site.
Constitution
Applicants are required to submit the company’s Constitution, which can be either self-drafted or based on the Model Constitution.
This legal document includes details such as objectives and features of the company, rules and regulations, operational details, and responsibilities and rights of key personnel.
Specify the financial year
When registering a company in Singapore, the applicant must determine the financial year for corporate filings.
Document requirements
To register a company in Singapore, certain documents are required:
- For foreign individuals, a copy of passport, proof of his/her overseas residential address, and KYC information are mandated.
- For residents, the applicant’s SingPass is required, and
- For corporate entity shareholders, Memorandum of Association, Articles of Association, and Certificate of Incorporation are required.
Guidelines for Foreigners Starting a Business in Singapore
Foreign entrepreneurs seeking to establish a business in Singapore aim for a simple process and luckily, the Singaporean government has simplified the registration process for foreigners.
Similar to any other company, applicants must first determine the type of company they wish to incorporate. The application is submitted through the ACRA online portal, requiring a SingPass.
As this pass is obtainable only by Singaporean citizens, it is essential to enlist the help of Damalion, who will guide throughout the company registration process in Singapore.
Running a Singapore company
Foreigners have two options for running their company in Singapore:
Managing the Business from Overseas: this option is suitable for foreigners who prefer to stay abroad while operating their Singaporean business. They must appoint at least one Singaporean citizen as a director. The remaining requirements for incorporation are the same as those for setting up a local company. This registration type eliminates the need to relocate to Singapore.
Managing the Business while Residing in Singapore: this option is for foreigners who establish a wholly-owned subsidiary in Singapore and either work in the company themselves or hire a foreign national. In addition to engaging the services of an agent, such as a law or accounting firm, the business owner must appoint a Singaporean citizen as a director.
For both options, Damalion can provide assistance.
Post-incorporation procedures
- Opening a corporate bank account
Once the company is incorporated, applicants can open a bank account in Singapore with a local or international bank. Damalion can assist in opening a bank account for your financial transactions.
- Obtaining special licenses
Depending on your business activities, certain licenses may be required. Damalion can also assist in obtaining any required special licenses in Singapore.
- GST (Goods and services tax) registration
“If the projected annual turnover of the business is expected to exceed S$1 million, GST registration becomes mandatory for the company.
- Income tax and annual filing requirements
Every registered company in Singapore is required to meet the annual filing requirements specified in the Companies Act, as well as fulfill their income tax filing obligations in accordance with the Singapore Income Tax Act. Damalion can assist with both of these filings.
To incorporate your company in Singapore, contact your Damalion expert today.
