Setting up a business in Singapore is regarded as a straightforward process, especially when receiving the guidance of a specialist in company registration, such as Premia TNC. The government also offers tax exemptions to new businesses and supports them with various schemes during their early stages.
This guide covers everything you need to know to register a company in Singapore. Our specialists are ready to assist, ensuring a smooth and hassle-free incorporation process.
The Perks of Singapore Business Incorporation
Singapore consistently ranks as a top destination for foreign entrepreneurs and businesses, thanks to its numerous advantages. These include a swift and efficient company formation process, a favorable tax system with low rates and attractive incentives, a strategic location with modern infrastructure, a highly skilled workforce, high living standards, an open immigration policy, and a strong intellectual property framework.
Singapore Business Incorporation: Key Steps for Registration
1. Determine the name of your company
Registering a company in Singapore is a streamlined process that involves three key steps. First, secure approval for your company name from ACRA by ensuring it meets criteria such as uniqueness, lack of trademark conflicts, and appropriate language use. Certain business-related terms may require additional review. Once approved, the name can be reserved for up to 120 days, after which it will be released if the registration is not completed within that period.
2. Put together the essential documents
Prepare the necessary documents for company registration, including identification and residential details of directors and shareholders, as well as signed consents from directors and the company secretary. These documents are crucial for the registration process and can be prepared either with the help of professional firms or by using ACRA’s templates. Once all the documents are in order, you can move on to the final step.
3. Proceed with business registration
Officially register your business with ACRA, the Singapore Company Registrar, through an online process that can be completed in under an hour. In rare instances, additional scrutiny by other government authorities may be necessary, potentially extending the registration timeline by a few weeks. Despite this, the overall procedure remains efficient and accessible for both local and foreign entrepreneurs, showcasing Singapore’s favorable environment for business establishment.
A Look at the Common Business Entities in Singapore
In Singapore, the most commonly established business entity is the Private Limited Company. It is limited by shares, meaning shareholders are not liable for losses and debts beyond their share capital amount. This type of entity is recognized by the government as a separate legal entity from its shareholders and is taxable under Singaporean law.
Before registering a company, it is essential to comply with the Companies Act and register with the Accounting and Corporate Regulatory Authority (ACRA). ACRA, as the Company Registrar, oversees the company registration process as stipulated in the Companies Act, 1967.
The Minimum Requirements for Singapore Business Incorporation
To register your company in Singapore, you are required by law to have at least one shareholder, one company secretary, and one resident director, along with a physical registered office address in Singapore and a minimum initial paid-up share capital of S$1.
Required Information for Company Incorporation in Singapore
Kindly consider the following key points when registering your Singapore company:
1. Opting for a company name, which:
- Obtained approval from ACRA prior to incorporating your company.
- Ensures the company name is desirable.
- Is not identical to any existing company name.
- Is not similar to established trademarks.
2. Presenting your list of shareholders
To become a shareholder in your company, an individual or entity can either purchase or subscribe to shares. For a private limited company in Singapore, you need at least one shareholder, who can be an individual or a corporate entity, with a maximum of 50 shareholders. Something to note is that a director and a shareholder can be the same individual.
3. Meeting the requirements for directors
In Singapore, a Private Limited Company must have at least one director who is a resident of Singapore, holding either a Singapore Employment Pass, permanent residency, or citizenship. There is no restriction on the number of additional directors, who can be either local or foreign. However, all directors must be at least 18 years old, not bankrupt, and free from any criminal malpractice convictions.
4. Appointing a company secretary
Every company is required to appoint a qualified company secretary, whose main duty is to ensure adherence to regulatory requirements
5. Making the paid-up share capital payment
To register a company in Singapore, you need to pay a minimum of S$1 or its equivalent in other currencies as the paid-up capital. Please note that Singapore regulations do not allow for “no par value” or “bearer” shares. The minimum issued capital must be one share with a par value.
6. Providing a registered physical address
In Singapore, your company is required to have a registered physical office address where all official documents and notices can be sent. It is mandatory to ensure that the address provided is a physical location. It is also where you must keep the legally required company registers. For certain types of businesses, it is permissible to use a residential address as the registered office address.
7. Providing a governance structure
The governance structure of a company is detailed in its Memorandum of Association and Articles of Association, collectively known as the Constitution. These documents define the relationship between the shareholders and the company.
Singapore Business Incorporation: Opening a Bank Account for Foreigners
Opening a business bank account in Singapore is crucial for handling transactions with clients, partners, and government entities while protecting personal assets. The country’s well-established banking system offers a range of reputable banks that can enhance a company’s credibility. Service providers often assist in this process by helping businesses select the most suitable bank and navigate application requirements. This typically involves consultation, payment, and submission of essential documents such as corporate papers, member passports, and business proofs. The service provider also manages the application submission and scheduling of bank interviews.
While bank approval is ultimately at the discretion of the banks, successful applicants usually have their corporate accounts established within a few months. Once the account is set up, businesses can start their operations in Singapore. It is important to be aware that some business activities might require additional licenses, which must be obtained before commencing operations.
The Typical Timeframe to Incorporate a Company in Singapore
To avoid delays in approval and registration, ensure that all required information and identification documents are provided. Additional documents may be requested by the compliance team for verification. Upon receiving all the necessary KYC information and signed incorporation documents, a reservation of the company name is made, and the incorporation process is completed within one day.
Notification of Company Incorporation
Once your Singapore company registration is finalized, we will provide you with the official documents from ACRA, including the Business Profile, Certificate of Incorporation, and Constitution. These documents will detail your company’s registration number, date of incorporation, and company structure, among other key information.
Steps Upon the Successful Registration of a Company
After registering your company in Singapore, you are required to complete several steps to finalize the formation process. This includes opening a bank account, setting up statutory books, and appointing an auditor if necessary. You may also need to apply for relevant licenses and permits, register for Goods and Services Tax (if applicable), and complete customs registration. Establishing an accounting system, hiring staff, and applying for Employment Passes for any foreign employees are also required. Additionally, ensure you are aware of compliance filing deadlines, such as for the Annual Return, and prepare directors’ resolutions as needed, among other tasks.
Premia TNC’s Incorporation Service in Singapore
Once your company is incorporated in Singapore, you can open a corporate bank account with any international or local bank. To do this, submit your application along with the necessary business documents to your chosen bank. The review process generally takes 3 to 4 weeks, after which the bank will arrange a video call with the company director and authorized signer.
For assistance and to ensure a smooth setup, contact Premia TNC’s professional staff. We are here to guide you through every step and help you establish your business structure correctly from the start. Reach out to us today to begin your Singapore business incorporation.
