In Singapore, a large majority of businesses are incorporated as a Private Limited Company. Though the process for Singapore company registration is very simple, business owners benefit by appointing a registered filing agent like SBS Consulting.
Why Register a Private Limited Company in Singapore?
Singapore ranks 2nd in the World Bank's 'Ease of Doing Business' report 2020. It occupies 4th place for ease of starting a new business. It ranks 7th for the ease of paying taxes and 3rd for the minority investor protection indicators.
Singapore is a favourite destination for Foreign Direct Investment (FDI). In the 3rd quarter of 2020, it has attracted US$15.4 billion. The investors and business owners prefer it for its transparent regulatory system, lower tax rates, politically stable system.
Singapore has a pro-entrepreneur culture which is supported by a strong startup ecosystem. The authorities purposefully have kept the personal and corporate tax rates low. There is no tax on capital gains which translates to tax-free dividends to shareholders.
Singapore companies benefit from various tax exemptions and rebates like Partial Tax Exemption and Corporate Tax Rebate. The new Singaporean businesses get to enjoy 75%-50% tax exemption during their first 3 years under Startup Tax Exemption Scheme. The country has efficient communication networks, harbours, and airports to maintain connectivity with the outside world.
Critical Factors of Company Registration in Singapore
To set up a Singapore company, you need to be prepared with:
ACRA Registered Company Name
Check the availability of the name for your proposed company on BizFile+, a portal maintained by ACRA. Pay ACRA fee of S$15 and register the available name for your use.
Minimum Share Capital
The minimum initial paid-up share capital for company registration in Singapore is S$1.
Shareholder
A private limited company can be formed with 1-50 shareholders (individuals and/or companies).
Director
You must have appointed at least one individual as a resident director. Hire a Singaporean, Permanent Resident or a holder of the EntrePass.
Registered Local Office Address
You require a local registered address for your Singapore company office. P. O. Box address is not valid.
Company Secretary
You must employ at least one corporate secretary within 6 months from the date of the company set up. The appointee must be qualified and ordinarily resident of Singapore.
Company Incorporation Documents
You need to submit the following documents to your agent:
Company name approved by ACRA
Brief description of business activities
Registered local office address
Particulars of shareholders/directors/company secretary
Foreign Individuals: A copy of passport & proof of residential address (overseas)
Foreign Companies: A copy of their company constitution or M&AA
Singaporean Residents: A copy of Singapore ID card
The foreign business owners cannot self-register their Singapore company. They must hire a provider of Singapore company registration services. These professionals are experienced and knowledgeable and make the task a hassle-free experience for them.
It is easy for foreign business owners to accomplish company registration in Singapore. If they want to relocate and work in Singapore, they need a work visa or a pass like an EntrePass or Employment Pass. Alternatively, they can choose to operate their company from their native place. In this case, they need no work visa.
The process for company registration Singapore is a 2-stepped process.
#1. Register Your Company Name
Choose a company name that:
Is Unique and decent
Is Not black-listed
Is Not obscene or vulgar
Does not violate copyright or trademarks
#2. Register Company with ACRA
Submit your documents to your agent. They will visit BizFile+ portal and initiate the process online. ACRA takes about 1-3 days to register a company. If it is successful, it sends you an email containing your company details.
In some cases, certain applications may experience delays in processing as more verification time may be needed.
Certificate of Incorporation: You receive an email containing Certificate of Incorporation from ACRA.
Business Profile: The email also contains the business profile of your company. It gives details like:
Name of company and Unique Entity Number
Previous names for the company (if any)
Date of Incorporation
Principal activities
Paid-up capital
Registered office address
Particulars of Shareholders/Directors/Secretary
Open Corporate Bank Account: You need to be physically present in Singapore to open the corporate bank account for your company.
Get Business Licenses and Permits: Apply and get business licenses and permits that you need before starting your activities.
Get Central Registration (CR): You need CR if you intend to export and import goods.
End of Financial Year: Decide the date to end your company's financial year.
Register for Goods and Services Tax (GST): If you expect your annual turnover to cross S$1million, register your business for GST.
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