When choosing to register their business in Singapore, most entrepreneurs create private limited companies. However, you can also employ alternative business structures based on your needs as a firm, the risk you are willing to take, and the amount of liability you can afford.
When choosing to register their business in Singapore, most entrepreneurs create private limited companies. However, you can also employ alternative business structures based on your needs as a firm, the risk you are willing to take, and the amount of liability you can afford.
Select the Appropriate Legal Framework
You can incorporate your firm as a Sole Proprietorship or Limited Liability Partnership (LLP) in addition to a Private Limited firm. Here’s where you need to exercise caution because your decision may affect your tax liability and amount. It may also have an impact on a company’s tax liability, legitimacy, branding, and capacity for fundraising.
The Singaporean government provides initial startup support to new firms. The government helps them establish roots by providing them with a range of grants and tax breaks. Their overhead expenses are reduced by the low corporation tax rate. They have breathing room to find a footing or a crevice to cling to thanks to this assistance.
Your company is only eligible to receive these benefits if it is a privately held limited company with local registration. In Singapore, you must continue to oversee their management as well.
How to Set Up a Private Limited Business
To register a company, you must submit an application to the Singaporean Company Registrar. In this role, the Accounting and Corporate Regulatory Authority (ACRA) is a government entity.
You must apply to ACRA in order to register your company or business firm in Singapore, such as an LLP or single proprietorship. If you are not a foreign national, you might assign the task to a Singapore business registration services provider.
There are just two steps in the simplified registration process for companies in Singapore.
Obtain ACRA approval for your company name
To register your firm, submit an application to ACRA. Obtain ACRA Approval for Your Company Name
You must select a distinctive, significant, and honorable company name. It will increase the likelihood that the ACRA will approve it. Give the agent you chose to form your firm a list of three to seven company names.
Their specialists will visit the ACRA website to verify if the names are available. They will pay an official charge of S$15 to register the available company name.
File for Registration of Singaporean Company
ACRA serves as Singapore’s Company Registrar. Moreover, in order to register your firm, you must apply to ACRA. All documentation related to incorporation and KYC must be sent with your application. Additionally, a $300 processing fee must be paid as an official cost.
Your application may be processed by ACRA in one to three days. ACRA emails you upon the completion of your successful Singapore business registration. In Singapore, you can use it as an Incorporation Certificate. It includes information about your recently formed firm, such as the business profile and Unique Entity Number (UEN).
The approval process may take up to two months if ACRA refers your application to a Ministry.
Prior to Incorporation Conditions
A few pre-incorporation requirements must be met before you choose to start the Singapore business registration process. They are mentioned as follows:
Shareholders of the Company
A minimum of one shareholder is required to establish a private limited company. Up to 50 people may be stockholders. A director of a firm may also be one of its shareholders.
A Singaporean company may have shareholders that are individuals, corporations, or trusts. Singapore permits you to own 100% of the shares in your firm if you are the only foreign stakeholder.
Director, Local or Resident
At least one resident director who typically resides in Singapore must be appointed. A Singaporean national, a permanent resident, an entrepreneur, or a holder of an employment permit may be nominated.
Additionally, you have to confirm that the appointee is above the age of eighteen, has no bankruptcy, and has no criminal record.
Secretary of Company
Within six months of your company’s inception, you are required by the Company Act to designate a company secretary. You must choose a capable and seasoned person who is familiar with company law and who typically resides in Singapore.
A Singaporean, a permanent resident, an employer, an entrepreneur, an S, or a dependent pass holder may be designated. A firm’s company secretary cannot be its lone director.
Initial Paid-Up Capital Minimum
For your Singapore business registration, the minimum initial paid-up capital is S$1. After your company is incorporated, you are free to raise its capital at any moment.
Registered Local Address
For your company office, you must offer a registered physical address in Singapore. The address must be a residential or business address. The address on the PO box is invalid.
Make Singapore Business Registration Easy
For this procedure, a lot of local business owners choose to use a Singapore business registration services provider. They frequently select a registered filing agent.
These agents are permitted to communicate with government offices, provide paperwork, and make official payments. They have incorporation specialists on staff that can help you streamline and advise you on business establishment.
Your supplier can set up a nominated director if you don’t have a local director. These companies also offer a company secretary or a local registered address for a fee. They might also help you register your new business with a corporate bank account.
Singapore is an excellent place to launch a new company. It is ranked #2 in terms of “Ease of Doing Business.” This explains the popularity of Singapore business registration. In just one to three days, you can establish a new company in Singapore thanks to the quick process.