Since you read this article here, you have probably decided to register a company in Singapore because of the business and tax exemption that the Singapore government is making.
However, there are certain obligations that you must take in order to start a business in Singapore. Singapore has its own requirements. They are effective in maintaining a legitimate business environment. According to the Companies Registration Law of Singapore, Chapter 50.
The Corporate Accounting and Regulatory Authority (ACRA), which also serves as the registrar of the company in Singapore, oversees the process of registering the company in Singapore. If you decide to start a new company or move to a stable city state, make sure you meet the requirements set by ACRA.
Starting a business in Singapore can be exhausting and time-consuming if you, a trusted warehouse agent, can help us. Foreigners wishing to start a business in Singapore should seek assistance from a local business registration provider as they are not allowed to self-register for a new company in Singapore. We have an affordable combo accessory package.
This guide includes:
- Detailed procedure for the requirements of the pre-registration document
- The process of registering the company step by step
- Registration requirements and other aspects
To make it even more readable, this guide is divided into the following sections. Feel free to click on the links to navigate to the section you want, or skip the links to continue reading the guide.
- Choosing a business framework to maximize tax benefits?
- What are the pre-registration requirements for registering a company in Singapore?
- What should foreigners do to start a business in Singapore?
- What are the documents required to register a company?
- What are the steps for registering a business in Singapore?
- Do I have to complete the registration formality?
Choosing a business framework to maximize tax benefits
Before you start the registration process, you must first identify the business structure that best suits you. ACRA allows the following types of commercial registrations.
- Private Limited Private Company
- Unique property
- Limited Liability Partnership (LLP)
You can read about the advantages and disadvantages of this business structure here.
Limited Capital Company (Pty Ltd)
The company must pay corporate tax (0% -17%) on its taxable income. The owners of a single property or partnership are obliged to pay the personal income tax (0% -22%) on the income obtained from their activity.
Based on scalability and robustness, a limited capital company is the most preferred business structure for entrepreneurs who want to start a new company in Singapore.
- It has a distinct legal identity.
- The shareholders’ liability is limited to the amount invested in the acquisition of its shares.
- If properly structured, a privately owned company can be a tax efficient business entity.
- Foreigners can own 100% of its shares.
- Anyone over the age of 18 can include a company in Singapore, regardless of nationality.
Once you have chosen the structure of the activity, you must meet the following requirements.
Pre-registration requirements for registering a company in Singapore
- You must appoint at least one resident director in your company.
- You can have anywhere between 1-50 shareholders.
- You need a local address for your Singapore office
- You must appoint a company secretary within six months from the date of company establishment.
- You need a minimum primary capital of $ S.
How can foreigners start a business in Singapore?
Foreigners can use two of the options below to register a business in Singapore.
- Option 1: Create a company in Singapore using Antipas and relocate.
- Option 2: Appoint a manager appointed for the new company.
Complete guide: How can a foreign record company in Singapore?
List of documents required for company registration
- The company name is registered with ACRA
- An overview of business activities
- Details of the registered address of the Singapore Company
- Details about shareholders
- Manager details
- Details about the secretary of the agency
- Foreign contractors must submit a copy of the passport and proof of residence address (abroad).
- Foreign companies must present memoranda and status
- Residents of Singapore must submit a copy of their identity card in Singapore
Steps to register the company in Singapore
Step 1: Reservation of the company name
In order to register a new company, its name should be approved by ACRA. The chances of a quick approval will be higher if you consider the following.
- The name must be, Unique, meaningful, easy to read and devoid of the word vulgar or obscene.
- No copyright. They should not infringe any trademark.
- Your application may require external authority approval if the company name includes certain words, such as “Bank”, “Finance”, “Education”, “Media”, etc.
If you would like to use our company registration service, please provide at least 3 names to check the availability of the name with ACRA.
Once the company name is approved and reserved, it will be automatically reserved for 60 days from the date of the request. You are advised to incorporate the company within a specified period. However, we, as a registered registration agent, can request an extension of another 60 days by submitting an application on your behalf.
Step 2: Register the company
After approval of the company name, you can request the registration of the company. It does not take long to complete the process assuming the documents are OK.
Formalities for completing the post-business registration
Certificate of incorporation
The registrar of the companies, that is, ACRA will send an email confirming the successful incorporation of the company. This includes the company registration number. This printed copy is treated as the official certificate of incorporation in Singapore. However, we can obtain a hard copy of the certificate by making an online application to the authority. A nominal fee will apply.
The business profile of the company
You can obtain a business profile of the company from the authority immediately after incorporation. It contains information about the company and can be used by making an online application with a small application fee. It will be available as a PDF file, which can be downloaded within one hour of your request.
The business profile of the company involves the following key details:
- Company name and registration number
- Previous company names, if any
- Date of registration
- Main business activities
- Paid-up capital
- Registered address
- Particularities of the shareholders/administrators/secretary of the company
- Soft copies of both documents (company certificate and company profile) are sufficient to perform all legal and contractual activities, including opening the corporate bank account, signing the office rental contract, subscribing to office utilities (internet, telephone), etc.
Opening a Bank Accounting
Opening a business bank account in any of the banks in Singapore is required after the company is incorporated in Singapore. The main banks that you can consider are HSBC, DBS, OCBC, Citi Bank, Standard Chartered, UOB, etc. Nowadays, in order to meet the KYC rules, many banks require the physical presence of the company’s stakeholders for the opening of a business bank account.
Get business licenses and permits
It all depends on the business activities of the company, regardless of whether you need to obtain business licenses and permits for your newly incorporated company. It should be noted that licenses must be obtained prior to the commencement of business operations. Not all companies require licenses. Fortunately, only a few business activities, such as restaurants, cleaning companies, educational institutes, travel agencies, financial services, import/export of goods must secure the business license.
Registration of goods and services tax (GST)
If the expected annual turnover of your new company is more than $ 1 million, your company must register at GST. It is an indirect tax levied on the consumption of goods and services in Singapore. In many other countries, VAT is also called VAT (value added tax).
For your company registered in GST, you will have to charge the GST tax (7%) to consumers of goods and services. And, the amount must be remitted to the tax authorities. GST filing is a compliance requirement for all businesses registered in GST.
After registering your new company, you must take care of the following articles or documents:
- Company stamp: The rubber stamp of the company is an element that gives credibility to the company document. It has the name and registration number of the company engraved on it. The rubber stamp makes the official documents of the company seem more authentic and professional.
- Company Seal: Like the company’s rubber stamp, it is a legal requirement that there be a seal for each company in Singapore. It is mainly used in documents such as action certificates, loan documents, and any legal documents
- Share certificates: The company secretary must issue share certificates to each of the shareholders. It serves as its own evidence in the company and shows how the share was distributed among the shareholders.
- The resolution of the first commission: the resolution to appoint the directors and other officials of the company as auditor, the secretary of the company, etc.
Compliance for Singapore companies
Each company established in Singapore must meet a set of annual filing requirements to remain in compliance with the law.
Accounting requirements: All Singapore companies must keep their books in order. Be the general register, accounts payable and receivables of account or accounting of fixed assets; each account must be maintained on time. The annual financial statement must be prepared and submitted to the authority in XBRL format.
AGM Communication: It is a mandatory requirement for each company to hold the AGM every calendar year. The financial statements of the company are submitted for the approval of the shareholder.
Annual filing of declarations: The filing of annual declarations must be made after one month from the date of the AGM of the company.
Corporate tax filing: The latest corporate tax filing dates are November 30 (paper registration) and December 15 (electronic filing).
Determination of the financial year: Each company in Singapore is free to determine its financial year. It does not necessarily have to be the accounting cycle from January to December or from April to March. The financial year (accounting cycle) can start at any month of the year.
Funding assistance for start-ups in Singapore
Singapore has set up a very friendly ecosystem for starters. The availability of a series of government financing assistance is one of the key advantages of Singapore’s company registration.
The government has pumped tons of money into these schemes. It is part of the government’s initiative to support start-ups from their earliest days.
You can tap the following schemes to use your innovative ideas or technology to create a business:
- SEEDS FIRST
- ACE startup grant
- ComCare Enterprise Fund
In addition, there are many other government subsidies, incubators and equity programs available in the city-state.
S & F Consulting Firm is a reputable Singapore registered agent. We assist and advise the setting up business owners in setting up their companies in Singapore. If you have any questions, call us at +601136901890 or email: email@example.com to find out more.