Private Limited Company Singapore is fully fledged company that got separate legal entities and also known as limited private company Singapore. Generally, the foreign investors establish this type of company for running their business activities in Singapore. Setting up a private limited company in Singapore is a comparatively easy process and it takes about a week to incorporate the company with ACRA. ACRA is a legal regulatory body in Singapore that regulates corporate sector in Singapore by monitoring if the company is following the proper law and business constitution of the country. The first requirement for private limited company Singapore is to choose a name for the potential concerned company and search in ACRA’s online database to check if the name is already available. If ACRA approves the name then the intended name remains available for the applicant for the next two months and within this time frame, the company may apply for incorporation.
Private limited company Singapore requirements include incorporation process and for this, all documents and information of the company must be submitted to ACRA via misfile online service. The company also has to submit the particulars of the directors and shareholders including the name of the concerned persons, residential address, passport number and also the profession. In addition, the company also has to submit the constitution of the company and the group structure chart. If the shareholders of the company are corporate-entities then the company has to submit the certified true copy of shareholder’s certified incorporation document. Please note that the documents mentioned above are the requirements of ACRA for setting up a private limited company in Singapore. The submitted documents should be in English and if they not then it is mandatory to submit official translated copy of the document. This is common practice in Singapore is to submit the application by nominal directors and shareholders with the subscribed share value of $1 Singaporean dollar. After the incorporation process is complete one may easily transfer the share and directors may be replaced if required.
Setting up a private limited company Singapore
Private limited company Singapore advantages include that the company may incorporate as the separate legal entity from the shareholders of the company and the shareholders will not be liable for the debts of the company in the future. So the personal liability of the company is limited for the company’s shared capital and also it is not required that the share capital is fully paid. In this way, the individual shareholders are relieved from any future debts and payment obligation for their shares. Private limited company Singapore has no minimum share capital requirements. Although the very low share capital is not recommended as it may generate many difficulties to deal with local authority such as custom, immigration etc. this is truer if the shareholders are foreign. So after the incorporation process is complete the company become operational then it should increase it’s paid up capital to a minimum amount of $50,000 Singaporean dollars and this amount may act as working capital; thus can be used for paying the salary of the employees, rentals, and travel etc.
Private limited company Singapore must have appointed directors and among them, one must be natural directors and that must reside in Singapore. If any foreigner is acting for this position then he must hold permanent residency or employment pass and this may fulfill the statutory residency requirement. The director must be appointed within six months after the company is incorporated and business is running over six months and directors are not appointed then shareholders are personally accountable for the debts and liabilities. So it is important to appoint a trustworthy director who may work according to the instruction for foreign shareholders. In order to maintain the majority, there should be at least three directors on the board. If there is only one director and he/she leaves the country then there would be no appointed director for the country and shareholder should appoint the new director as soon as possible.
The company law in Singapore does not differential between local and foreign-based shareholding and thus the company may be 100% foreign owned. For establishing a Private limited company Singapore, only one shareholder is required and the company may take up to fifty shares from natural persons and also the legal entities. Additionally, the company has to appoint a secretary who must fulfill the age requirement and also resides in Singapore. The appointment a secretary for the company is required by ACRA and secretary is responsible for maintaining accounting records and corporate register. It is common practice in Singapore that the external lawyers or accountants act as company secretary. There are many third party companies in Singapore that provides complete secretary services.