To anyone considering setting up a base in Asia, Singapore is a country that rings rather loudly. The small red dot has been ground zero for several startups of recent, great texture, coming from the company of tech. Due to the immigration policy, SIG plan does well to provide incorporation services for the company. Still, the company offers custom advisory services in line with any Singapore business beginners. Despite what the economic pickiness seems to suggest, several multinational companies prefer to deal with Singapore as their business base in Asia.
Benefits of Incorporating a Company in Singapore
Startups with businesses registered in Singapore enjoy diverse funding opportunities. The angel investors, capital firms both inside the nation and abroad are interested in investing in Singaporean businesses. You may qualify for local grants and loans if you are a business entity operating in Singapore. Singapore is now no. 2 in the world for the easiness of starting a business. Startup capitals, crowdfunding platforms, and business accelerators in Singapore have played a prominent role in enticing investors.
Corporate and income tax imposed by the Singapore government is about 8.5% and 17%, and if your company’s annual turnover is up to S$200,000, you can utilize tax exemptions and pay lower taxes for the respective years. The benefit you get from the tax framework is massive, and you will end up spending a lesser sum on taxes.
Companies worldwide are looking forward to incorporating business in Singapore. There were several reasons that made it a popular choice for foreign entrepreneurs and investors. With the profitable and consistent business goals, the new startups especially find the comfort to settle in the lion city.
Overview of Our Hassle-Free Incorporation Service
At every step of the way, we have dedicated consultants, dedicated secretarial support, and dedicated after-incorporation support. Our experience in dealing with all regulatory compliances ensures that the incorporation goes along without any major hitches. More importantly, we don’t stop just at incorporation – we have dedicated staff to help our clients with work passes, virtual offices, accounting, and tax services. Our system is also built on multiple redundancies and huge inventories of fresh companies and cannot be compromised. We provide quick and reliable results to you, the end-user. With our two-tier same-day incorporation process and our MoU with Singapore’s largest commercial law firm, IRB Law LLP, we utilize our speed and vast industrial network to make the entire process faster, better, and cheaper.
Once you engage with Corporate Services Singapore, you can be assured that your Singapore incorporation experience is as hassle-free as it can ever be. Whether your business is big or small, a start-up or multinational, our incorporation packages will cater to your every need. We are the earliest pioneers in the industry and our service was the first of its kind in Singapore. That means we have the largest client base with the best track records, giving us a wealth of invaluable knowledge and experience that we are fully capable of tackling your unique problems with optimal solutions.
Key Steps in Company Incorporation
Detail Residential Address of Each Director or Member All company directors and shareholders must have a local residential address. If the partners list residential address doesn’t reside in Singapore, they need the third party local contact person as their local touchpoint. You are all required to prepare a Singapore local address used for company registration.
Step 1: Choose a Company Name Singapore company name must be unique and at the same time, alluring enough as not to be mistaken for that of another existing business. Name conforming to S&IRB’s specifications and standards for company names. The new rules announced (on 1 April 2007) by the Accounting and Corporate Regulatory Authority (ACRA), reserves a proposed company name for 60 days. If the business does not proceed as planned, the reservation lapses after 60 days, and after the incorporation has taken place.
Step 2: Appoint Company Directors It would help if you have all of your directors’ and shareholders’ exact names as per NRIC. Have the names, NRIC, and a contact number for each of your directors ready. And if they are foreign nationals, get a copy of their passport. Every director is to be conformed to the Companies Act No 1 of 1967, the director must be at least 18 years of age, having no disqualification under the Company Act and the most vital; each director must have the consent to act as a director and company secretary in writing.
Choosing the Right Business Structure
Before registering a company in Singapore, entrepreneurs must choose a suitable structure. Singapore offers several business structures: sole proprietorship, limited partnership, limited liability partnership (LLP), and private limited company. The right choice depends on the number of owners, expected size of the business, quantity of business debts, and tax planning. Among these, a private limited company is the rare and best fit for those who are launching a scalable venture. A private limited company is a separate legal entity where shareholders are not liable for company debts beyond the amount of share capital they have each paid up. It is able to own property or assets, sue (or be sued) and enter into contractual agreements. Shareholders hold shares as proof of ownership of the company but are not involved in the everyday running of the business. All businesses in Singapore must be registered with the Accounting and Corporate Regulatory Authority within 14 days of its establishment. Consequently, a foreigner must engage a professional service provider like Coinnox.
Registering Your Company Name
The name chosen should have accurate meaning; the company name field in every registration form will need to be filled in English. Translated documents are required for foreign-language company names. Be specific in describing the different aspects of the business, funneling down to the relevant core aspects of the business. The name in order to steer clear of restrictions and trademark/copyright law thus, avoid any infringement issues with pre-existing Indian brand names, and apply for a logo registration. Finally, ensure the use of simple and modern language that allows effective online communication and ease of brand recognition and cross-culture appeal.
To register your business, your selected company name will need to be approved by ACRA before moving on to the next steps in the process. You can do a name search to see if the name has been taken or if it is available for use. It is important to note that, unless exempted, the company name will have to be approved, as a one corporate action restricted by another law is not allowed. Similar or identical names could be dealt with depending on their usage, intention, and the nature of the businesses.
Obtaining Necessary Licenses and Permits
Typically, licenses have to be applied through the specific regulatory bodies after the company’s incorporation. Though regulations may change over time, experienced entrepreneurs are aware when to apply for necessary business licenses and permits. In this case, they are enabled to act before a major business is executed. If you are not sure what sorts of permits, if any, you need to start your business in Singapore, Brickstr will provide the information when assisting to start your local company. You may rely on us for the guidelines resolved in the regulations to launch not only a Singaporean company but other foreign companies as well.
Easily obtain all necessary paperwork you need to run your business by following these steps. Singapore is generally known for its business-friendly ecosystem and smoother corporate compliance regime. Most businesses do not require a license to start. There are no custom licenses for foreign entrepreneurs starting companies in Singapore. But there are some specific businesses listed in the regulations, subjected to their own licenses. To cite examples, food and beverage outlets may require a license from the National Environment Agency (NEA) for selling alcoholic drinks. The sale of essential oils and aromatherapy substances may necessitate obtaining the necessary licenses from Health Sciences Authority in Singapore. Also, tuition and training services are subject to the regulations stipulated by the Committee for Private Education, and financial services are subject to the relevant Monetary Authority of Singapore requirements.
Opening a Corporate Bank Account
You will be required to make a physical appearance at the bank’s branch for the opening of your new corporate bank account. The general requirements for opening a corporate bank account for your company in Singapore include: (i) the initial deposit into your new corporate bank account (usually the minimum deposit required is between S$500 to S$3,000); (ii) the Memorandum & Articles of Association, Certificate of Incorporation, Financial Information of your company, and copies of Identification Documents (NRIC/Passport) for the directors, signatories, and ultimate beneficiaries of the company; and (iii) the business profile issued by the Accounting and Corporate Regulatory Authority (ACRA) and the list of company shareholders (can be obtained from ACRA for a small fee if you forgot to ask us to print this document for you at the time of your Singapore company incorporation).
In Singapore, you are allowed to establish a corporate bank account for your company before or after the incorporation of your company. The choice is yours. It is a widely known fact that setting up a corporate bank account in Singapore is easy and straightforward as long as you have the standard documents required by the banks in Singapore. Some of these banks include Oversea-Chinese Banking Corporation (OCBC Bank), Development Bank of Singapore (DBS Bank), United Overseas Bank (UOB Bank), and many others. Before we move further, I would like to remind you that every bank has its own unique requirements, terms, conditions, and fees for different types of corporate bank accounts. With this understanding, I would advise that you visit three or more banks and discuss with them before making any decision.
Appointing Directors and Shareholders
Auditors – A company must appoint a qualified auditor within three months after its incorporation. However, a company is not required to appoint auditors if it is a dormant company or a company exempted from having its accounts audited. A dormant company is a company that has no accounting transactions during the financial year. A company is granted audit exemption automatically in the first financial year if it can fulfill at least two of the following criteria: total annual revenue of not more than S$5 million; total assets of not more than S$2.5 million; and total number of employees of not more than 50. Subsequent year exemption must be filed and approved by the relevant authority.
Shareholders & Directors – There is no requirement for the director of a company to be a resident of Singapore, but if there are no Singaporeans or Singapore permanent residents among the directors, the company must have at least one director who is ordinarily resident in Singapore. In addition, at least one company secretary of the company must be appointed within six months from the date of its incorporation. The company secretary must be a natural person who has his principal or only place of residence in Singapore. Any individual may be appointed as a company secretary provided that he is not the sole director of the company.
Watershore’s Hassle-Free Incorporation Process
For those who are not residing in Singapore, this is a virtual meeting arranged through WhatsApp, Skype or any suitable platform. The entire process takes less than an hour and once we have all the required details, we will proceed to incorporate your Singapore Private Limited Company and ensure that you can begin your business endeavor swiftly, without hassle.
Indeed, we have a simplified process for everyone, whether you plan to work or live in Singapore, are from another part of the world, or are an EntrePass applicant. Let’s break it down. Once we have finalized the company name and received a Singapore identification number, we then email (or courier) all the incorporation documents for your perusal and signature. This will take place around a week after the 10-minute phone consultation with us and the instruction to proceed that follows.
With that in mind, what does our process of new company incorporation Singapore service entail? If you plan to work or stay abroad, that is not an issue. Whether you are in Singapore right now, or planning to arrive here later, your presence here is not required during the company incorporation process. Our process is such that whatever details needed to get the statutory obligations in this area out of the way, we will reach out to you to gather them as painlessly as possible.
Initial Consultation and Requirements Gathering
From the point at which you make first contact with the correspondent of the service provider to the completion of the incorporation process, there are 4 main stages, including an extra step for the activation of the required online accounting software. This stage is available only to those who purchase the company incorporation together with this optional software. In this initial stage, you’ll be introduced to the basic company incorporation requirements of Singapore, important roles of corporate office-holders, eligibility of individuals who want to assume these roles, and the various documents required of you. The requirements that must be understood and fully satisfied in order for the company incorporation process to go ahead are presented. Then your personal details and other necessary information to be included in the required documents are gathered.
You’re ready to launch your business and have decided to incorporate your company in Singapore. You’ve chosen to do so with the help of a corporate service provider. You want the entire incorporation set-up process and ongoing administration to be frictionless and less time-consuming, from start to finish. In addition, it should be clear to you exactly what documents or information you are required to produce. The overall process should be transparent, as far as possible.
Preparation and Submission of Incorporation Documents
These major documents are submitted along with the NCBS e-submission information file. The file is created through the online business centre to ensure compliance with ICMC defined format for e-submissions. Additional information on the directors and secretaries may be required depending on their details or circumstances to fulfill any provided system validations within auto-approval limits. Nonetheless, some facilitation occurs with electronic submission assists for the common cases.
Guarantor’s Resolution – Decision of incorporator on the appointment of director. This is used by the incorporator to attend the bank to open a corporate account on behalf of the company after incorporation. Director’s consent and undertaking. The director must consent to his/her appointment as director of the company. Declaration by the Director with particulars and nominating a person to act as a local agent. – Used for companies with all directors residing outside Singapore to declare that a person residing in Singapore has been nominated to act as a local agent for the company. Declaration by the Secretary or Director of the Company – The secretaries and directors of the company must declare that they are not disqualified from acting in those capacities. Notice of Incorporator’s refusal – The incorporator may refuse its nomination. An outstanding issue or controls at the conclusion of preparation of the incorporation document sets could result in refusal of the nomination in respect of the preparatory manual for the unattended service failover scenario.
Liaising with Government Agencies and Authorities
Singapore companies must also notify the Central Provident Fund (CPF Board), within a week from the date of their incorporation, whether or not they and their employees are liable for CPF contributions. Beyond that, accounting and corporate secretarial services will be crucial to ensure that the various steps to comply with statutory requirements are efficiently managed. This enables an entrepreneur’s new company to begin its enterprise seamlessly with minimal disruption. Above all else, amidst the hustle and bustle of the bustling metropolis, it remains important to remember that these indeed are sweetness of the fruits borne from the ‘garden city’s’ environment, thereby making doing business here a very enticing proposition indeed that the entrepreneur will greatly profit from, both personally and commercially!
Upon the incorporation of your new company, several essential procedures must be completed in order to ensure everything is in order, and that your company starts off on the right note. Generally, once a newly-incorporated company is set up, it has to be registered with the Inland Revenue Authority of Singapore (IRAS) within a month in order to obtain its unique Tax Reference Number for tax purposes. Only then can a company’s bank account be opened. Companies must also register for the Goods and Services Tax (GST) if their annual turnover is expected to exceed S$1 million, or is already above S$1 million.
Company Registration and Issuance of Incorporation Certificate
If the application is incomplete or otherwise defective, the applicant will be required to comply with the directions given by the Registrar. The company will not be deemed to be incorporated until these requirements are met and a further application is made, unless the time for the making of the further application has expired and no further or timely application is made. If registration is refused, the Registrar shall inform the applicant of the refusal but need not give reasons for the refusal. The applicant may, within a month after the date of the refusal, apply for a review of the decision, and the decision of the Registrar on the review shall be final.
Upon satisfaction of all registration requirements, the Registrar shall incorporate the proposed company and issue the incorporation certificate as well as the business registration certificate to the applicant. This will normally be done within 15 minutes. The certificate of incorporation is conclusive evidence of compliance with all the requirements to be complied with by the applicant.
Post-Incorporation Support and Services
The company secretary is an officer of the company, and every company secretary must ensure that the company complies with the Companies Act and other relevant legislation. The company secretary also provides the directors with practical advice on the day-to-day administration and ensures that the company meets its statutory obligations. The company secretary is responsible for ensuring that the company satisfies the annual obligations such as filing the Annual Return and preparation and lodgement of annual accounts to the governing authorities of the Companies Act within the stipulated time. For audit exempt companies, the financial statements are required to be tabled in the annual general meeting and lodged with ACRA together with the relevant compliances/internal documentation within 5 months from its financial year-end. All private companies in Singapore with the exemption need to file salient financial data and registration particulars of the company.
Once the company is incorporated, you will need to keep your company’s accounting in order. This is done by maintaining a proper record of your company’s income and expenses, including supporting documents such as receipts and/or invoices. Generally, it is advisable that you engage a corporate services provider who will provide professional company secretarial support and address your mandatory statutory filing requirements in Singapore. Below are several post-incorporation support and services you may consider engaging to help you in the management of your company’s corporate secretarial needs.
What are the eligibility criteria for company incorporation?
After company incorporation, a shareholder is a co-owner of the company and, as such, benefits from the company’s potential for generating returns in the form of dividends and increased share value. Nonetheless, being a shareholder is not like being a bank account holder, where one is free to pick and choose one’s financial products according to the price, interest rates, features and so on. Although a shareholder owns a piece of a company that he/she can sell at a later date, they must follow a central set of rules that determine how shareholders can trade, and how they can buy and sell shares. Moreover, it is important to note that corporate managers have a different and often conflicting set of rules and responsibilities. Once your company is incorporated in Singapore, you can become a shareholder in a number of ways. In a one-member private company, you are registered as a shareholder upon incorporation. In a public company, you are a shareholder by virtue of purchasing shares from a stock exchange; or by attending shareholder meetings and voting without question. Similarly, you can also be issued shares for valuable considerations you provide to the company, which may not be cash, and ASEAN nations recognize the authority of a private company to issue its shares.
It is crucial for every entrepreneur to understand the basic criteria that need to be satisfied before one can incorporate a company in Singapore. To incorporate a company, you are not a minor (i.e. aged 18 and above) and you are not an undischarged bankrupt. In addition, you must not be convicted of any malpractices or fraudulent acts, unless you have been given explicit authorization by the Minister for the purpose of setting up a company. More specifically, directors must meet basic fitness and propriety requirements in certain regulated sectors. (Note that, over and above local legislation requirements, specific guidelines for these regulated sectors are also in place.)
How long does the incorporation process take?
The incorporation process is easy as the entire process is fully automated by ACRA. Next to completing the incorporation form, you can also register for Goods & Services Tax (GST) and apply for a business license (if required) at the same time. ACRA has also authorized certain private corporate secretarial service providers such as Ascenders Corporate Solutions to incorporate a company on behalf of its shareholders. To decrease the risk, ACRA maintains an Anti-Money Laundering and Countering Financing Terrorists Division (AML/CFT). ACRA requires all directors and shareholders of the company to provide their personal information and residential addresses. ACRA conducts a background check about the directors and shareholders to ensure that they are not associated with any terrorist group or organization. Once the clearance is received, the company is officially registered as a Singapore company.
The easiest way to incorporate your business in Singapore is through Accounting & Corporate Regulatory Authority (ACRA)’s BizFile online system. The process is quick and hassle-free. Most company incorporation service providers in Singapore should be able to assist you with the incorporation. Once the online application is sent to ACRA, it will usually take 15 minutes for your application to be approved if the documents are in order. If the submitted documents are not in order, ACRA will request for the necessary documents through email. You could then log back into the BizFile system to upload the documents. It may take approximately 14 days to register a local company and for overseas individuals or corporations it will take about 4-7 days to incorporate a Singapore company from the time the documents are filed in ACRA.
What are the costs involved in company incorporation?
In the event of agreements, you can opt for common models. Experts recommend breaking down an agreement into several modules. A block is the Concept of Intent, and a block is a sales agreement. First, the concept of intention is signed, which means that all the partners understand the benefits and are wishing each other good luck. Then dividends are paid, which depend on the time at which investments are received. After the launch of the original capital is considered paid. After the brand starts to make a profit, interest begins to be distributed based on the presence of company shares in the founder’s capital. Paid interest cannot exceed 12 to 15% for each founder each year. The model agreement must accompany the transfer of funds to the bank’s name. This gives a clear understanding of the legal and bureaucratic concept of legal rights.
Get yourself a good company incorporation service provider in Singapore. The company would manage the A to Z of your company incorporation, helping you save time, effort, and unnecessary trouble, including a modest amount of money. Additionally, they review your proposal, which you may have thought up all by yourself, set up the necessary corporate structure, get your proposal approved by all the required government authorities, as well as provide helpful tools for effective working of the company in the first hand. But where do you look for the reasonably-priced, yet very qualified perfect company incorporation services? Now, you are in luck because you have a very good and speedy regional company incorporation service provider, currently located in Singapore, however, always having the whole globe in their thoughts. United Corporate Services is definitely your best out-of-this-world solution! If you have any inquiries or need more advice about Singapore company incorporation, regional, or any other related matters, drop us an email at [email protected] Or use the Live chat and we promise to get back to you at the earliest opportunity at hand.
Can I incorporate a company as a foreigner?
Once you have a bank account in Singapore, you will transfer at least SGD1 to your new company bank account and then issue a share capital on your behalf. You can currently sign the company letter yourself, so you do not need to be in Singapore for this phase. In general, we require around 1-2 weeks for Singapore incorporation and two days of compliance. We will handle the procedure free if you order the employment pass with us to start your business because we have already managed directly to obtain both at once. If you need more detail about the company formation Singapore, please click here on our corporate installation page. You can contact human resources, accounting, and our bookkeeper. We give you CSR and everything you want to manage your business in all capacities. We’re even going to talk to you at 10 am on a Saturday if there’s a problem.
Every Singapore company must have at least one local director resident in Singapore. For companies with Singapore company incorporation, the director must also be a director. If you don’t have a director, then ask us to lodge a nominee director until you are able to recruit your own or quit his position. Regardless of where you are, you will register your business. You do not have to visit Singapore to start a business. With a Singapore employment permit, you and your shareholders will then sponsor your company. It’s a relatively straightforward procedure, and it is a legal requirement that all businesses have at least one local director who resides in Singapore.
What ongoing compliance requirements should I be aware of?
- a) The Companies Act requires a company to maintain full financial statements for 7 years after completion. Subsidiaries in Singapore must also file records of its ultimate holding company within two months of holding its AGM. It is important for Directors to be aware that the Companies Act imposes significant duties on them. Ignorance of the Act, resulting in actions which may contravene the Act, constitutes no excuse in law, and neither does reliance on other persons for the company’s compliance. Pte Ltd companies must appoint at least 1 approved company auditor within 3 months from its incorporation. Also, companies must also appoint another approved auditor if the directors believe there may be grounds for concern in respect of its financial statements.
- b) Annual General Meetings: The AGM of a company is required to be held in Singapore unless the company is a private exempt company. At the AGM, the directors must present a true and fair view of the company’s financial position. They will also lay before the company’s shareholders the financial statements, director’s report, and auditor’s report. The financial statements must be audited, and the auditor must be present at the AGM. The audited financial statements must be filed with ACRA and IRAS in a prescribed format. If the company does not hold an AGM, the directors may bypass this requirement by passing a Members’ Resolution, with the consent of all members in place of holding the AGM. This Members’ Resolution must be filed with ACRA within 60 days from the date of laying the financial statements.