Before a company can be allowed to operate in Singapore, it must get the legal clearance from the registrar of companies who issues it with the certificate of incorporation that allows it to marry out its activities in Singapore. Most companies in Singapore are registered as private limited liability companies. A private limited company is a separate legal entity in which the company’s shareholders cannot in any way, be held responsible for the company’s debts beyond the amount of share capital they have contributed. The law allows any person above the age of 18 to register a company in Singapore.
Types of company formations
Before you can dream of registering your company you must know the different types of Singapore company formations and know the requirements needed for each and every type of formation. There are several types of company formations including sole proprietorships, partnerships, public companies and limited companies. Different types of companies have different sets of laws governing their operations and registration.
It is also important to highlight that there are various legal requirements that any company will be required to meet before it can be registers to operate in Singapore. These requirements must be met by both local and foreign companies seeking registration.
In Singapore the government imposes a registration fee on every company that is seeking registration. The registration fee differs from one company type to the other.
Before the Singapore company registration, you must be well versed with the basic requirements. First, you must have a company name; the name should be the official name which will be used by the company as part of its identification.
As part of the registration requirement, the company might be asked to produce its trade logo. This requirement is normally imposed on large companies.
Before any company can be registered in Singapore it must have at least one resident director who must be a Singapore national. All company directors must be of 18 years and above and must possess a clean criminal record and must not be bankrupt. The number of directors will depend on the size of the company.
For any company to get the certificate of incorporation it must have shareholders. The number of shareholders might vary depending on the size and type of company; however the minimum number of shareholders can be even one as it is in the case of a sole proprietorship. The company has every legal right to transfer its shares to new shareholders after its incorporation.
It is a legal requirement for every company to have a company secretary who must be a qualified accountant. The company secretary must be a resident of Singapore.
Paid –up capital
The company’s paid-up capital can be increased any time after its incorporation.
Your company must have an official address because this is part of the registration requirement. The address includes the physical address, postal address, phone numbers and email addresses. The addresses help in easy identification and search of the company by both clients and the government.
One of the major attractions for investors in Singapore is the huge tax incentives for companies from the government. Compared to other countries’, companies in Singapore are relatively low taxes. It is important to know the different tax incentives enjoyed by different types of company formations as well as the amount of taxes payable by each type of company formation. Different companies attract different amounts of taxes payable to the government.
For foreign companies seeking registration in Singapore they must ensure that they have a representative office or branch in Singapore before they can be granted the certificate of incorporation.
Once all the above requirements have been met the company will be issued with its incorporation certificate and it will be free to proceed ahead with its day to day functions as a fully registered company. It is also important for any company to know the procedures and processes involved when dissolving a company and what factors can lead to the dissolution of a company. Another important aspect to know is that the government reserves the right to issue a certificate of incorporation to any company and it can also revoke the certificate if the company violates the set down rules.