Singapore has firmly established itself as a “Global Business Hub” on the international stage. It is celebrated for its pro-business environment, political stability, strong legal framework and efficient infrastructure. Therefore, establishing a business in Singapore is a strategic move that offers a gateway to Asia’s most thriving economy.
Setting up a company in Singapore is a quick, straightforward process, and it is free from red. The Company Incorporation Process in Singapore involves several key steps to legally establish and register a business entity.
Below, you’ll find a detailed, step-by-step guide to help you navigate through the process of incorporating a company in Singapore:
Define the Business Structure
In Singapore, the structure of a business pertains to how it is legally organized and registered. Common legal structures for businesses in Singapore include:
Sole proprietorship – A business that is operated and owned by a sole individual.
Partnership – Abusiness structure in which two or more individuals manage and operate a business in accordance with the terms and objectives outlined in a partnership deed.
Limited liability partnership (LLP) –A partnership where certain or all partners (depending on the jurisdiction) bear limited liabilities.
Private Limited Company Pte Ltd-Legal entity separate from its owners (shareholders).
Public company limited by shares – A company whose shares can be traded publicly on a Stock Exchange
Public company limited by guarantee – A company formed for non-profit purposes.
Select and register a business name
Choosing a unique and meaningful company name is significant for any business. It is crucial to ensure that the selected name adheres to the naming guidelines set by Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
Confirm the availability of the business name on the ACRA website. Additionally, be aware that registering a business using an existing company name is prohibited.
Appoint Directors and Shareholders
Nominate at least one director (a Singapore Permanent Resident or Citizen) and determine the shareholders. You can have up to 50 shareholders, allowing 100% foreign ownership with local directors.
Acquire and File Incorporation Documents
Get the required incorporation documents ready and submit them to ACRA . Also, include details of directors, shareholders, and the company’s constitution. The list of non-exhaustive documents includes:
- Company Name Reservation Form
- Memorandum and Articles of Association (M&AA).
- Declaration of compliance.
- Details of Shareholders, Directors, and Company Secretary.
- Registered office address
- The company seal
- Share certificates
- Business profiles and so forth.
ACRA Approval and Certificate of Incorporation
Await approval from ACRA. Upon approval, you will be issued the certificate of incorporation, officially confirming the establishment of the company.
Open a corporate bank account
Set up a corporate bank account in Singapore. Provide the required documents, including the Certificate of Incorporation and Business Profile.
Register for taxes
Register for goods and services tax (GST), if your business turnover is expected to exceed the specified threshold. Familiarize yourself with and comply with corporate tax requirements.
Adhere to Employment Regulations
When recruiting employees, ensure strict compliance with Singapore’s labor laws. Secure essential work passes, especially for foreign personnel.
Fulfil Ongoing Compliance Requirements
Stay informed about and comply with ongoing requirements, such as filing annual returns, conducting annual general meetings, and updating changes with ACRA.
Consider Professional Services:
Consider engaging professional services, such as corporate service providers or legal firms, to ensure accurate and efficient compliance with regulations.
Secure Business Premises
Choose a suitable business location and secure the necessary leases or agreements for your office or workspace.
Launch Your Business
With all the groundwork laid, it’s time to officially launch your business. Begin the promotion of your products or services and establish a strong presence on the market.
In conclusion, while the process of incorporating a company in Singapore may initially appear difficult, with the right guidance, it evolves into a manageable journey. By adhering to the steps outlined in this guide, you are establishing a solid foundation for your business to thrive in one of Asia’s most dynamic markets. It is important to note that seeking professional assistance and staying abreast of legal requirements is essential for ensuring a smooth incorporation process.
