Why Is It Convenient To Incorporate A Business In Singapore?
Singapore consistently seeks innovations in their businesses when times get tough, and the city-state relies on economic growth and sees start-ups as a great source. Moreover, Singapore offers an excellent pro-business alternative when many governments make ownership difficult for foreigners. There is no limit to foreign ownership, which means foreigners can own 100% of their business.
Most importantly, foreigners can register company in Singapore without much effort. Though there are a few differences in the requirements, the entire process remains swift and straightforward. There are a few additional requirements that a foreign business owner should follow before company registration. Firstly, Suppose business owners have no intention of moving anyone from their company to Singapore. In that case, they will have to appoint a nominee director who is either a Singaporean, permanent resident or EntrePass holder. Secondly, foreigners cannot self-register their companies in Singapore. They need to hire a registered and qualified filing agent to complete the application process.
What Are The Basic Requirements To Register A Company In Singapore?
There are a few legal requirements all business owners need to register a company in Singapore, and those are as follows:
- Every company name must be approved and registered with Singapore’s Accounting and Corporate Regulatory Authority or ACRA.
- Next, decide a company’s financial year end to determine when all the corporate filings and taxes are due yearly.
- Companies must have at least one director residing in Singapore. Directors can be citizens or permanent residents.
- Most importantly, companies must have a minimum of one and a maximum of fifty shareholders.
- Companies must have one appointed secretary within six months from the company registration date, and the adult must be a resident of Singapore.
- Companies not exempted from audit must have an appointed auditor within three months of company registration.
- The structure of a business is essential. Therefore, business owners should provide all stakeholders’ names, email addresses, phone numbers and identity documents.
- Companies must have a local registered address in Singapore and a minimum of 1 SGD in initial paid-up capital.
How To Register A Company In Singapore?
Firstly, company registration starts with reserving your company name and getting approval from ACRA. Typically, applicants receive the results of approval or rejection within two days. To increase the chances of company name approval, avoid business names already reserved by another entity and identical to any existing business in Singapore.
Secondly, When the company’s name is approved, organize all the necessary documents for the application process and ensure they have the right people to register their company.
Finally, submit the application to ACRA via their portal. After your submission, officers will receive an email from ACRA to endorse their appointment. When this final step is completed, business owners will receive a unique entity number for identifying their business.
The majority of businesses in the world are sole proprietorships, and it is the most accessible entity to establish. Sometimes owners can run their businesses as an entity because many forms of companies are available such as traditional partnerships, Limited partnerships and Limited Liability Partnerships. A private company works as a separate entity in Singapore, and it includes protections from personal ownership risks and provides an easy path to distributing shares.