There isn’t a better country to establish a business or corporation other than Singapore.
Singapore is known as one of Asia’s friendliest country for overseas businesses to set up their presence here. Singapore is known as one of the top financial hubs in Asia. The country has smooth regulations on taxes and strong intellectual property protection. Most businesses incorporate here as private limited companies.
Local and foreign entrepreneurs who are 18 years of age or above are eligible to register for a company in Singapore. There are legal requirements, rules and regulations that companies must comply to. By hiring an experienced and professional firm to manage your company’s administrative work, you can spend more time focusing on managing your business.
A new company needs to register through ACRA (Accounting and Corporate Regulatory Authority). ACRA states that private limited entity should have a certain amount of paid up capital in your bank account to start their business.
To set up a Singapore Private Limited Company, the next steps are required:
1. Establish an Approved Name for the Company
The business names:
- Must not contain any obscene words
- Must not infringe any trademark
- Must not be the same as any existing business
When your business name has been approved, you will need to file an incorporation form. You will need to fill in some forms relating to the Memorandum & Content of Association (M&AA) which consists the law as well as the structure and organization activities.
Whichever registration firm you may choose to hire to represent your business will provide you with all of the details as well as the necessary incorporation forms for you to fill up. Other significant things that you have to be mindful of:
- The office working hours
- The directors and the shareholders details
- A Copy of the Identity Card in Singapore.
2. Singapore Companies Act
Before starting a company, you will need to know the Singapore Companies Act. Singapore companies are mainly governed through the Singapore Company Act. Do take note that different business industry requires you to liaise with other government authority such as getting a licence.
3. Requirements for Building Singapore Business
The law states that your company must have at least 1 Shareholder + 1 Local Director + Company Secretary.
- The director must be a Singapore citizen, Permanent Resident or holding a Singapore Pass such as the Entrepreneur Pass.
- He or she must be 18 years of age or above
- Must have a clean record
- Must not have declared bankrupt
- A business must have 1 shareholder. The maximum amount of shareholders that the company can have is 50 shareholders.
- Shareholders can be an individual or a business entity. The director can also be the shareholder. If a foreign entity wants to set up a company here, they can fully own the company in Singapore.
The company secretary:
- According to the SCA, a Singapore company must have a company secretary.
- The company secretary needs to be appointed within 6 months of company incorporation and he/she needs to be a resident of Singapore.
- The business must have a paid-up share capital of at least S$1. Unless you are an EntrePass holder, you paid-up capital will most likely be S$50,000.
- The companies here must provide a registered company address in Singapore.
Address with a PO Box is not allowed.
A professional service provider will be able to help you in your business incorporation. They will not only help you in registering a company in Singapore but also help you with the entire process of the business incorporation cycle.
By getting professional service providers, they will make sure that you will receive the right information, documentation and resources for setting up an enterprise in Singapore.