Starting a company is an exciting journey, but the work doesn’t stop with the registration process. As you embark on a new chapter after the incorporation of Singapore company, there are crucial steps you need to take to ensure a smooth and successful operation.
In this article, we will guide you through the nine essential tasks that should follow right after the incorporation of your Singapore company. From appointing key personnel to understanding compliance requirements, each step plays a vital role in setting a strong foundation for your business.
1. Arrange Your First Board Meeting
After appointing your board members, it’s time to hold the inaugural board meeting to set rules, procedures, and goals post-incorporation of your Singapore company. Adopting a business constitution is crucial for governing internal operations and guiding your company.
During the meeting, finalize the company seal, appoint officers, confirm the Singapore registration address, decide the financial year-end, and establish business books. While the first board meeting may require time for working out details, ensuring legal compliance from the start is vital to lay a strong foundation for your new business.
2. Determine Your Company’s Financial Year End
Your company’s Financial Year End (FYE) is the last day of the accounting period, providing insights into the company’s ongoing profitability. The FYE determines deadlines for corporate filings and taxes. Private companies must hold their AGM within 6 months and file annual returns within 7 months after FYE. Choosing a suitable FYE ensures timely compliance and smooth financial operations.
3. Open a Corporate Bank Account
To open a bank account for your Singapore company, provide the bank with your company’s certificate of incorporation, constitution, and board resolution authorizing the account opening. Most banks may demand the personal presence of account signatories, at least two business directors, or one secretary and one director.
Shareholders must deposit their investment share capital into the newly established account. Some banks may demand in-person signatures, while others accept them at a branch location abroad or in front of a notary. Prepare essential documents like board resolutions, business profiles,Constitution, and identification proofs for directors and ultimate beneficial owners.
4. Implement Your Company Seal
Unlike a stamp, the company seal is a metallic tool that doesn’t require ink. It is used on official documents, leaving a clear impression of the company’s name and registration number when pressed into paper. This seal is essential for documents like share certificates and loan agreements.
Typically, two signatures must accompany the seal to validate the document. Traditionally kept by the secretary for security, its controlled access ensures proper usage. Usually, two directors, one director, and the company secretary must countersign any documents sealed with the company seal to make them official.
5. Issue Share Certificates
A shareholder’s ownership of shares in a company is verified by a share certificate, a binding legal document. It can be issued with or without the common seal of the company. It is crucial to keep track of the total shares issued, the ones allocated to shareholders, and the remaining shares held by the company.
This information is essential for future financing purposes. In Singapore, issuing share certificates is mandatory, not optional. Any changes to company shares may require reissuing or reclassifying the certificates. Properly maintaining these records ensures transparency and compliance with regulations.
6. Apply for a Business License
After the incorporation of your Singapore company, it’s crucial to determine if your business requires specific licenses and permits to operate legally in Singapore. Research and understand the applicable regulations before commencing operations. Certain businesses, such as financial services, employment agencies, travel agencies, and eateries, must obtain permits and licenses.
7. Appoint a Company Secretary
Within 6 months of the incorporation of your Singapore company, you must appoint a company secretary. Leaving the position vacant for over 6 months can result in penalties of up to $1,000 for the directors. The company secretary plays a crucial role in administrative tasks and ensures directors and shareholders are informed of their statutory obligations, such as filing annual returns.
Responsibilities can vary based on the company’s needs, including maintaining registers, preparing meeting minutes, and keeping abreast of corporate regulations. The company secretary cannot be the only director of the firm and must be a natural person who lives in Singapore.
8. Set Up Your Statutory Books
Statutory books are crucial legal documentation that needs to be kept at your Singapore registered office. These records can be requested by authorities like IRAS or ACRA, so they must be regularly updated and accurate. The books should include up-to-date information on company officers, shareholders, stock transactions, loan security details, and Annual General Meeting minutes with adopted resolutions.
Your company secretary is responsible for compiling and maintaining these crucial records, ensuring compliance with regulatory requirements and smooth operations. Keep these books organized and accessible to meet any official inspection or reporting needs.
9. Establish Your Accounting System
Keeping track of expenses and revenues after the incorporation of your Singapore company is crucial for complying with local tax laws and understanding your business’s financial status and profitability. Stay updated with the Singapore Financial Reporting Standards to ensure accurate accounting records.
Being diligent in maintaining your accounting books helps you avoid tax evasion penalties and stay in compliance with the law. From the day your Singapore company is registered, maintain proper accounting practices to make informed financial decisions and ensure smooth financial operations.
10. Engage an Auditor
You might need to employ an auditor within the first three months of incorporation of your Singapore company, depending on the type of business you have. However, most companies are exempt from audit requirements if their annual revenue, total assets, and full-time employees fall below-specified thresholds (S$10 million revenue/assets and 50 full-time employees).
Unless exempted under the relevant sections of the Companies Act, choose an auditor within three months of the incorporation of your Singapore company. Complying with Singapore law is essential, and appointing a qualified auditor ensures adherence to reporting standards and statutory obligations, providing credibility to your financial statements.
How We Can Help: Our Incorporation Service
At Premia TNC, we offer comprehensive incorporation services to streamline the process of setting up your Singapore company. Our expert team will assist with all necessary paperwork, registration, and legal requirements, ensuring a smooth and hassle-free incorporation process.
Ready for the incorporation of your Singapore company? Contact Premia TNC today for a FREE consultation. Our experienced team is here to guide you through the process and answer any questions you may have.
Incorporation of Singapore Company – FAQs
1. Is it mandatory to have a local director for the incorporation of your Singapore company?
Yes, Singaporean residency is required for at least one director. This individual may be a Singaporean national, a permanent resident, or the bearer of an Employment Pass.
2. How long does Singapore company incorporation take?
The company incorporation process in Singapore typically begins with the processing of the name application fee, which usually takes around 15 minutes. However, in some cases where the application requires approval or review from another agency, it may take between 14 days to 2 months for the incorporation to be finalized.
3. Can a foreigner be the sole shareholder of a Singapore company?
Yes, a foreigner can be the sole shareholder of a Singapore company. There is no requirement for local shareholders.
