Well, if you want to know the secrets of Company Registration in Singapore, then you’re supposed to continue reading the blog until the end because that’s how you can grasp the strategies well.
But before that, you must know what company registration means and why it is important to obtain.
So let’s get started with what firm registration means in Singapore.
Company Registration in Singapore
Typically, Company Registration in Singapore is the process of incorporating a business under the Singapore Companies Act either as Private Limited or Public Limited Company.
The public limited companies are one listed on the Singapore Exchange (SGX) and typically consist of more than 50 members. However, Private Limited companies are those not listed on SGX and have a maximum limit of 50 members.
It’s quite interesting to know that in Singapore, shareholders are the owners of the organization. And, shareholders hire directors to manage the company.
In Singapore, the most common type of business structure is the Private Limited Company because of various reasons. Let’s find out why company incorporation is vital.
Why do you need to register your business in Singapore?
It’s important to register your firm in Singapore because it offers many benefits to you. Unlike a sole proprietorship, the registered company has a limited liability from its members and is a separate legal entity.
With business registration, one can view his/her company growth better and raising capitals and funds are also pretty easy. Furthermore, one can transfer the ownership of the agency without much hassle. Hence, if you’re planning for company incorporation in Singapore, then let’s first find out the prerequisites of the registration process.
Prerequisites of Company Incorporation in Singapore
Directors: There should be at least one resident director, who could be either a Singapore Citizen or Singapore Permanent Resident, or a person having an EntrePass, Employment Pass or Dependent Pass.
However, there’s no limit on the number of local and foreign directors that a office in Singapore can have.
Shareholders: There should be a minimum of 1 and maximum of 50 shareholders in the company. A shareholder can be anybody from a natural person to a legal entity such as a trust or another company.
Company Secretary: Under Section 171 of the Singapore Companies Act, the company must hire a qualified company secretary within six months of incorporation. Only a natural person and the resident of Singapore can be the firm secretary. Shareholders or directors aren’t eligible for being the company secretary.
Paid-up capital: A minimum paid-up capital for company registration in Singapore is S$1 that can be increased anytime after the business’s incorporation.
Taxation: The best part of opening a company in Singapore is the tax benefits that companies get there. The corporate tax is 17% and the registered companies enjoy quite attractive tax exemptions and incentives.
Registered Address: To register a business in Singapore, the applicant must provide a local Singapore address as the registered office address of the company. The address should be a physical one and not a P.O. Box.
Company registration process in Singapore
In Singapore, the registration of the company and name reservation can be done simultaneously. And, the Registrar of Companies (ROC) is fully computerized here. For company incorporation in Singapore, follow the described process:
1. Name reservation
Before incorporation, you need to file an application for firm name reservation. The government of Singapore will approve the business name. The ROC will oversee the process.
While selecting the company name, you must keep into consideration that you do not use words such as law, media, bank, and finance. It is so because these words slow down the process by days or weeks.
For expediting the process, you can select a name which:
- Doesn’t match with any existing agency’s name;
- Shouldn’t be an infringement of trademark;
- Shouldn’t appear bad, obscene, offensive, or rude.
After the ROC has approved the company name, the documents will be processed in a few hours. In case you’re a foreigner, the process can be delayed due to additional interrogations to be performed by the government authorities.
Hence, it was all that is required for business registration in Singapore. If you look further for more information and wish to register your company in Singapore, then contact one of the best company registration consultants Enterslice.