Setting up a company in Singapore can seem a daunting challenge, but it shouldn’t be. With the help of innovative company incorporation services and the right resources available in advance, you can effortlessly establish your own private company. These directions can help you have a legal private startup within a short time and get down to business.
TIPS: Incorporate your Singapore company with Acrafile to ensure that your company’s gets approved and started within the same day(typically within 1 hour) the incorporate documents gets submitted to ACRA.
1. Register a Legal Name for Your Company
To have a company with a legal status in Singapore, as in any other country, registration or incorporation is necessary. You can submit an online application with the Accounting & Corporate Regulatory Authority (ACRA). This organization confirms the availability of the name you have chosen for your company to ensure it is not already being used by another company. You will pay a total of $315 for the registration, in which S$15 is for name approval and S$300 is for the registration. You should also pay S$1 as the initial paid-up share.
A private limited company is the easiest form of business entity among the five that you can set up in Singapore. A few requirements need to be complied with for the rest of the process to be completed.
2. Present the Owners and Personnel
At least a single shareholder of the company you intend to set up must be present. A shareholder can be a person or an organization. In addition, one resident director and a secretary must be present. If you are starting the company solo, you can be a shareholder as well as a director. For a private limited company, you can register up to 50 shareholders, both local and foreign. However, the director or directors be a Singaporean, a person who resides permanently in Singapore, one who is in possession of an Entrepreneur /employment pass. He or she may also have a Dependants Pass and have a Singapore residential address.
3. Acquire a Physical Office Address in Singapore
When you register a company, you must prove that it has a verifiable physical address. The authorities will need a physical location that they can come at any time and establish its legitimacy. You may register a residential place as an office address but for certain types of business. The law requires the address to be in Singapore. A postal address is also necessary to receive all official correspondence from the authorities or clients.
4. Determine Your Business Activities
This means explaining the activities your business will be involved in. you should do this in the context of a Memorandum and Articles of Association (MAA). The Singapore Standard Industrial Classification Code (SSIC) 2010 is a valuable resource to help you figure out the business activities. You should do the selection and description carefully in order to avoid giving a wrong description that could jeopardize licensure in the future. If any inconsistencies between your business activities and description are found, it could be construed as fraud or misleading to cover up for something illegal.
5. Draft Up a Shareholders’ Agreement
To prevent disagreements between shareholders in the future, it is imperative to have a binding shareholders agreement in writing. This agreement may specify the shareholder’s obligations and rights, and it may describe the relationship among them. As a major shareholder, you should acquire the controlling rights in the agreement. It could later safeguard your interests.
6. Hire an Auditor
Within three months of registering, you must have an auditor in place, who will handle your audit requirements unless the government exempts your company from audit requirements. You may be eligible for audit exemption if your company has fewer than twenty shareholders. The annual turnover must also not exceed S$5 million.
Once your company is incorporated, you will receive an electronic confirmation through email. You will be assigned a standard ID number, the Unique Entity Number (UEM), and a business profile at a small fee. The company business profile is not necessary immediately. It typically has the details you provided during registration, including name, registration number, date of incorporation, paid-up capital, business activities, registered address, shareholders, directors and company secretary details, etc.
Finally, you will receive an incorporation certification in soft or for an extra fee a hard copy, as well as a share certificate. The share certificate proves your share ownership and shares allocation.
This certificate constitutes proof of share ownership and indicates shares allotted to each of the shareholders. It is the responsibility of the company secretary to issue this certificate.
Typically, it will take 15 minutes for name processing. However, it might take longer, usually 14 days to 2 months, if your application is referred to an independent government agency for approval. You are now ready to do business with your company. To ensure that things run smoothly, ensure you have other things ready, including a bank account where your money will be kept.