First, anyone over 18 can register a company in Singapore by applying to Accounting and Corporate Regulatory Authority. You can have 1-50 shareholders in your Singapore private limited company. Many business owners choose to do so because it maximises their tax benefits. It also limits their liability to the money they have invested in its shares.
Singapore Company Registration Process
The process for Singapore company registration is easy. Generally, the local or foreign entrepreneurs can register their company in 1-3 days. It is a credible business structure that scales well. However, such a company must obey strict compliance requirements. You will need to invest in preparing its accounts, directors’ reports and filing annual returns and audits. Singapore company registration process is straightforward and is designed to be free of red tape.
Accounting & Corporate Regulatory Authority (ACRA)
You need to apply to the Accounting & Corporate Regulatory Authority (ACRA) to register a company in Singapore. You don’t need any special permission to do so, and you get to enjoy 100% ownership of your company.
ACRA acts as the Company Registrar and supervises the Singapore company registration process. Foreigners and locals use registered filing agents to form their business in Singapore. Foreigners cannot self-register their company. Many accounting, law, or corporate secretarial firms provide services to register a company in Singapore.
Key Pre-incorporation Requirements
Must have at least one resident director
At least one shareholders
A local registered address in Singapore for the company office
At least one company secretary
Minimum of S$1 in initial paid-up capital
How to Register a Company in Singapore
Get Your Company Name Approved from ACRA
Provide your agent with at least five company names. Choose unique, meaningful, and easy to read company names. Vulgar or obscene words are rejected. They will check these names for availability on ACRA’s website. They will register the available one and pay S$15 in fees to reserve it for your use for 60 days.
Apply to ACRA
With a registered company name, your agent can apply to ACRA to register your company. You need to provide them with the proper incorporation and KYC documents in English.
Company name approved by ACRA
Business activities in brief
The local registered address of the company office
Particulars of shareholders, directors, and company secretary
Foreign business owners: A copy of passport and residential address proof (overseas)
Foreign companies: Memorandum & Articles of Associations, Incorporation Certificate
Locals: A copy of Singapore ID
After successfully forming your company, ACRA sends you an email containing UEN, business profile, etc. You can use it as the official certificate of incorporation. For hard copy, pay the required fee, and download and print PDF.
You can pay the fee and get the business profile giving the particulars of your company. Download the PDF file.
Get Licenses and Permits
Your business activities may require you to get licenses and permits. Apply to proper authorities, pay the fees and acquire them.
Goods and Service Tax (GST) Registration
If your expected annual turnover is in excess of S$1 million, you need to register your company for GST.
The documents carrying company’s seal look more professional and authentic. Send for company seal.
Advantages of Private Limited Company
Singapore private limited company is a robust and scalable business structure. It accommodates the growth of a business. It is credible in the eyes of the lenders and finds it easy to raise capital to expand its business activities.
A private limited company,
Has a distinct legal identity
Is liable for its debts and losses
Limits the liability of its shareholders
Can be a highly tax-efficient business
Can sue or be sued in its name
One of the reasons why business owners opt for Singapore company registration is the low tax rates. The corporate tax is charged at a flat rate of 17%. The personal income tax is in the range of 0%-22%.
Once a company pays its corporate tax, it can disburse tax-free dividends to its shareholders. The capital gains are not taxed in Singapore. The government, in addition, also offers tax benefits to startups for the first three years.
Even a foreigner can complete their Singapore company registration efficiently. However, they need to appoint a provider of services to register a company in Singapore. If you, as a foreigner, want to relocate to Singapore and manage your company, you need to get Employment Pass. Your agent can help you with it and save you valuable time & money.
Since 2010, SBS Consulting Pte Ltd has been advising the new business owners. They come to us to register a company in Singapore. Call us at +65 6536 0036 or email us at [email protected] to learn more.