Is Singapore business registration too difficult to accomplish? No, it is not. However, if you move to a different jurisdiction like Singapore, forming a new business seems an uphill task. However, you should not let it get you down.
Invest some time knowing the key facts of registering a new company in Singapore. And, there are professional firms or agents that can help you in this task. You can keep your initial costs down by searching for their promotional offers.
Forming a Private Limited Company in Singapore
To register a private limited company, you need to apply to Accounting and Corporate Regulatory Authority (ACRA). It limits the shareholder’s liability to the amount they have in shares. It is a separate entity from its stakeholders. It takes only 1-3 days to register a company in Singapore.
Pre-incorporation Requirements
You need to fulfill the requirements listed below:
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The minimum initial capital of S$1
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At least one shareholder
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At least one local or resident director
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At least one company secretary
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A registered local office address
Benefits of Businesses Registration in Singapore
#1
Special Permission
No! You, as a foreigner, need no special permission from a government agency or Ministry to form a company. The task is simple and straightforward. You can go to Singapore any time with proper documentation for it.
#2
Foreign Shareholding
No! As per the Company Act, you as a foreign individual or company can own 100% shares in a Singaporean company. And you can take your profits out of Singapore any time you want. There are no restrictions on foreign shareholding in Singapore.
#3
Resident Directors
You need to appoint at least one local or resident director. The appointee needs to be over 18 years old, with a clean record, and without a history of bankruptcy. Moreover, the appointee needs to be an ordinarily resident of Singapore. In addition, you can appoint as many local or foreign directors as you want.
#4
Shareholders
A private limited company in Singapore can have one to fifty shareholders. A shareholder can also be the director of the company. A company can also be a shareholder in another business.
#5
Company Secretary
Singapore companies must appoint at least one company secretary within six months after their business incorporation. It is mandatory for them to do so as per the Singapore Companies Act, Section 171.
The appointed secretary needs to be an ordinarily resident of Singapore. They also need to have knowledge of the Company Law and experience in coordinating with government agencies and executing compliance work. A sole director of a company cannot act as its company secretary. If there is more than one, one can assume this responsibility.
#6
Registered Office Address
You must have a registered address for your company’s office. You can use the address of the commercial or residential property in Singapore.
Singaporean authorities use this address for official communication with you. It is where you must also keep your important business documents like registers. The Post Office Box number is not a valid registered office address.
#7
Relocate to Singapore?
No, there is no need for you to relocate to Singapore after the successful Singapore business registration. You can control your Singaporean company from your home in your native country.
On the other hand, if you lead from the front, you would like to relocate to Singapore and manage its affairs. In this case, you will need an Employment Pass to relocate and work in Singapore. Your company secretary can apply to the Ministry of Manpower and get it for you.
#8
Statutory Compliance
You need to keep an eye on your business compliance. It is an ongoing process. You have to be spot-on about business’ annual filing, holding of Annual General Meeting, maintaining financial and employee records, etc.
#9
Taxation
Singapore is known for its low tax rates. It is one of the pulling-force that attracts investors and entrepreneurs to Singapore. The personal income tax rate is 0%-22%, and corporate income tax is charged at a flat rate of 17%. There is no tax on capital gains or on inheritance.
#10
Business Activities
At the time of Singapore business registration, you need to mention its activities in brief. Singaporeans are sensitive about companies in sectors like Education, Finance, Insurance, Etc. Your application to register a company in any of these sectors is handled by the concerned Ministries. It is why you should be careful in using these ‘terms’ in your company name.
Why Singapore?
If you are considering relocating to Singapore, you can expect a conducive social environment, reliable medical facilities, and excellent education. And a clean, secure, and safe social environment to take your family to.
Singapore is a pro-business, corruption-less society well known for its world-class infrastructure, low tax rates, and stable political environment. It has a strong workforce boasting of English-speaking professionals, managers, and specialists. They work well with multinationals and small and medium foreign businesses.
Singapore is a prominent business hub in Southeast Asia. As per the report prepared by the World Bank, it ranks 2nd for the ‘Ease of Doing Businesses’ indicator. It is why entrepreneurs opt for Singapore business registration.
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