Guide to new Company Registration Singapore
Are you considering to register a company in Singapore? Probably you may want to register it in Singapore because of tax exemptions and ease of doing business that the government of Singapore provides. We all know that registering a company is a process that should be handled professionally. Just like any other modern country, Singapore follows and applies quite a number of requirements when it comes to Singapore Company Registration.
Most entrepreneurs prefer starting their business in this country because here the process is less time-consuming and tedious. All you need is to have a reputed registered filling agent who can assist you to go through a complex process and steps of setting up your corporation. ACRA (Accounting & Corporate Regulatory Authority) acts as a company registrar and supervises the registration process in Singapore.
However, there exist various obligations that it’s a must to discharge when starting a Singaporean business. The country has its own rules and compliance requirements. Any foreigner who would want to start a company in Singapore will need help from a local business registration provider. Remember that foreigners are not allowed to do self-registration in Singapore. Read this guide to attain knowledge on how to register a company in Singapore.
- 1 How Much Will It Cost to Register A Company in Singapore?
- 2 List of Required Papers and Information Needed
- 3 Pre-registration Requirements for Registering a Company in Singapor
- 4 Company Registration Process in Singapore (Timeline)
- 5 Formalities to Complete Post-Company Registration
- 6 Procure Business Licenses and permits
- 7 Opening Your Corporate Bank Account
- 8 Goods and Service Tax Registration (GST Registration)
- 9 Compliance for Singapore Companies
- 10 Advantages and Disadvantages of Company Incorporation as a Foreigner
How Much Will It Cost to Register A Company in Singapore?
Most of us would want to start up a business in Singapore. However, an immediate question we should ask ourselves is: How much will this cost?
First, let us look at the fees you need to pay in order to register your Company in Singapore. As published by Accounting and Corporate Regulatory Authority’ website, the fee is as follows:
- Name Approval fee = S$ 15
- Registration Fee = S$ 300
Total amount of S$315 is what you are required to pay if you want to incorporate a private company in Singapore.
List of Required Papers and Information Needed
Anytime you want to register a company; the Company Registrar will ask the following documents and information:
- Company Name registered with ACRA (The Accounting & Corporate Regulatory Authority).
- Foreign companies are required to submit Article of Association and Memorandum of association.
- Particulars of directors.
- Registered Address and a copy of passport for foreign entrepreneurs.
- Particulars of company secretary.
- Brief Description of Business Activities.
- Particulars of shareholders.
- Singapore residents are required to give their identity card.
Pre-registration Requirements for Registering a Company in Singapor
Note that the following company information is what you need to provide during the process of registering your company in Singapore. Here we go –
Name of the Company: Your new company name must undergo approval before registering any business in Singapore.
Shareholders: For a Private Limited Company in Singapore, between 1 and 50 shareholders are needed. For a private company at least 20 shareholders are needed.
Company Secretary: Under Section 171, of Singapore Companies Act, you have at most 6 months to appoint and choose a qualified company secretary after you incorporate. A shareholder or rather a sole director can’t become a company secretary. This person should be a resident living in Singapore.
Appointed Directors: Directors are among the most important peoples in the process. At least one director is needed and be a resident in Singapore. The person should be a permanent resident or a citizen or any person with the valid dependent or employment pass. You can choose as many directors, foreign or local, as you want. However, this person should be older than 18, have no bankruptcy debt and have a good and clean criminal record.
Registered Address: Talking about the address, you need to acquire a local business address. This can be commercial or residential, but cannot be the post office box. However, under the Home Office Scheme, the homeowners are permitted to conduct small entities using their residential premises. This scheme is used or applies to both private and HBD properties.
Paid-up Initial Capital: For your company to be allowed, it must have at least 1 dollar in paid-up capital, although you may increase the dollars any time after the corporation.
Company Registration Process in Singapore (Timeline)
You’ll be pleased to know that now Singapore Registrar of Companies is wholly computerized. This is fantastic and amazing for those who want to keep red tape to a minimum. Indeed, a corporate service provider can table and submit your application faster under an hour where Registrar can incorporate your company on the same day. Also, you do both reserving of your company’s name and registering your company. Steps on how to register a company in Singapore:
1: Company Name Reservation
First, the Government of Singapore through (ACRA) must approve the name of your company before entering the registration process. The duty is mandated to the Registrar who will oversee this process. A registered filing agent will fill out and then submit the necessary and relevant application forms and documents on your behalf.
Additionally, The Company Registrar has to notify you about their decision instantly. Here, certain words might slow down the registration process including media, law, finance, and bank.
To expedite the registration process, you should pick a name that –
- The name should be meaningful, unique, devoid of the obscene and vulgar word and easy to read
- Free from the copyright issues
- The name must not infringe any trademark
- If the name contains certain words like “Finance,” “Bank,” “Media,” “educational” your application may need approval from the external authority.
2: Company Registration
This is the second step. After your company’s name has been approved by Registrar of companies, both your incorporation application and the documents will be processed within some few hours. Most importantly, your service provider will ensure all your documents are safe and in order. Also, it will make sure the shareholders and company directors have correctly signed all forms.
Most people from other countries might find it hard at times as their application can be delayed. Even though this is rare, the Government Authorities needs to perform further interrogations. $300 is what you should pay the registrar of companies for her services upfront. Normally, this fee is usually included by your service provider in Singapore Company Incorporation Package.
Formalities to Complete Post-Company Registration
1: Certificate of Incorporation
After the Company registrar finishes, you will receive an email from her. The email is a confirmation that you’re incorporated, and also it informs you about your company Registration Number. Certificate of incorporation is an official certificate so you should not lose it at any cost. Singapore doesn’t use paper certificate, though, for a 50 dollars fee, you can be given by the Company Registrar. The processing period may take 3 to 5 days.
2: Company Business profile
Also, the Company Registrar has a responsibility to create the company business profile for your company after this whole registration process is concluded. Your service provider will thereby secure this for you. Then you need to download the PDF profile that contains key information such as:
- Name of the company plus registration number.
- The previous name of the company.
- Incorporation date.
- Paid-up initial capital.
- Principal activities.
- Registered address.
- Directors details.
- Shareholders details.
- Company secretary details.
After you have received the business profile and email notification, you can now proceed with all contractual and legal tasks required in Singapore. You’re expected to open a lease office space, a corporate bank account or set up your internet and phone account. Your service provider will aid you to get ready with the following important items:
- A rubber stamp specifically for your company.
- Company seal for your company.
- Share certificates for every shareholder.
- A register indicating all shares allotted to every shareholder.
Procure Business Licenses and permits
A special, business license is essential. When engaging in certain businesses and deals in your company, you’ll require a license. The business license applies to all companies that engage in activities related to:
- Travel agencies
- Educational Institutes
- Financial agencies
- Employment agency
- Export/import of goods
Opening Your Corporate Bank Account
In Singapore, there are many outstanding banks; these include Standard Chartered, HSBC, OCBC, Citibank, DBS, and UOB. To have a wider choice of finest banks in Singapore, you should make an appearance. As you arrive, have a chance to tour each bank, look and evaluate its services and facilities and make sure that people working there satisfy your approval.
Goods and Service Tax Registration (GST Registration)
Certainly, your service provider will hope your annual revenue of the company will exceed 1 million dollars. If so, you’ll be assisted in registering for Goods and Service Tax, which is regarded as sales tax or value-added tax. After receiving your GST registration, you can continue and charge your clients an extra 7 percent for all goods and services you offer. Since you cannot keep all this money, you should hand it to the Singapore authorities. Nevertheless, if your yearly revenue is below 1 million dollars, there is no need to obtain GST registration.
Compliance for Singapore Companies
According to the law, each Singapore-incorporated company is required to fulfill numerous annual filing requirements so as to stay compliant and adhere to the law.
- Annual returns filing: The filling of annual returns is usually done one month after the date of the Company’s AGM.
- Accounting Requirements: All companies operating in Singapore must maintain all the accounting books appropriately. Be it in accounts payable, general ledger, fixed asset ledger or account receivables; every account must be operated on a timely basis.
- Corporate Tax Filing: Every company’s management should know that the last dates of filling tax for companies are 15th December (electronic filing) and 30th November (paper-filling).
- Convening of AGM: For every company, it is mandatory to hold an Annual General Meeting every year. This is where the financial statements are tabled, discussed for shareholder’s approval.
- Financial Year Determination: In Singapore, every company is free to examine its financial year. It is not fixed that a financial year should starts from January to December accounting cycle. The accounting cycle can begin in any month.
Advantages and Disadvantages of Company Incorporation as a Foreigner
If you are a foreigner and you are planning to start a company in Singapore, you many face advantages and disadvantages. These are:
- Limited Personal liability: As the owner or shareholder of the company, losses are limited as compared to capital paid and the amount you issued in the company.
- Reputation: Singapore companies enjoy an excellent and awesome international reputation.
- Tax advantage: In Singapore, there is the presence of tax incentives and schemes to ensure the growth of business.
- Credibility: The incorporated company enjoys strong credibility in general public eyes.
- Ease of entry: The registration process is less time-consuming and tedious.
- Termination process is always complicated.
- Stringent compliance matters.
- Administrative and Incorporation cost are high.
- A strict code of conduct.
As the demand for Singapore Company services continues to accelerate, more foreigners are coming in. As seen Company Registration Singapore is attracting much interest from every corner. This is because the company registration process looks easier compared to other nations. To ensure the growth of new businesses, they usually offer tax incentives and schemes. When setting up any company, it is advisable to engage the correct team that will assist you.
In Singapore, they offer a suitable and affordable package. Whether you’re a foreign entrepreneur with or without relocation, they will help you. Also, if you’re a local entrepreneur, the process will be even simpler for you. All you need is an excellent criminal record and free from bankruptcy. It’s your time to diversify and make an informed decision. Everybody has a dream to become a business owner, but in Singapore, your goals will be achieved.
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