What is Company Registration in Singapore?
In Singapore, there are certain requirements which must be full filled in order to incorporate a company. With a team of professionals we can help in setting up Singapore Corporation. In Singapore, self-registration of a new company is not permitted for foreigners.
To register a new business the most common way is to create private limited liability company. It is a separate legal entity and provide shareholders protection from debts beyond the amount of capital they contribute. In Singapore, Company is incorporated as per the rules prescribed under Singapore Companies Act. If we talk about the eligibility then anyone above the age of 18 can proceed for incorporation. The most efficient tax structure is provided under this type of Company incorporation.
Here are the following benefits of company registration in Singapore
Requirements of Company Registration in Singapore
For new company name, one must obtain approval.
There is a requirement of at least one Resident Director who can be a citizen, permanent resident, or someone with a valid employment pass or dependent pass. As many local and foreign directors can be appointed. It must be ensured that they fall under the eligibility criteria and do not have any criminal record and record of bankruptcy. Directors need not to be a shareholder in a company.
In Singapore, in a Private Limited Company there can be shareholders between 1 and 50 who can be individuals or entities, whether local or foreign. After company incorporation shares can be issue and transfer to the shareholders. Company is considered as Exempt Private Company if in case private company has at most 20 shareholders. In such companies no corporation holds (directly or indirectly) any beneficial interest. EPC will enjoy the benefit of audit exemption if the Company fulfilled the requirement of small company. There is a requirement of minimum of one shareholder. There is 100% foreign ownership allowed.
According to Section 171 of the Singapore Companies Act, there is a requirement of appointing qualified company secretary within six months of incorporation. Only a natural person living in Singapore is eligible to become a company secretary in Singapore whereas a sole director or shareholder is not eligible.
There is a requirement of minimum paid up capital of S$1 which can be increased at any time after incorporation.
For company registration in Singapore there is a requirement of registration of local business address whether residential or commercial but not a post office. In Singapore, there is a scheme named Home Office Scheme under which, homeowners are permitted to conduct operation of small-scale businesses on residential premises. The same scheme is also applicable on HDB and private properties.
As Singapore companies have the most efficient tax benefits and best business reputations.
Following are the Singapore's tax exemptions and incentives:
For Company Formation in Singapore Considerations for Foreigners
Documents required for Company Registration in Singapore
Here are the following documents are required for company registration in Singapore
Company Registration Procedure
In Singapore, Registrar of Companies is completely computerized.Company incorporation and name reservation can be done simultaneously.
1. Name Reservation
Before registration, Singapore Government approves company name. Registrar will oversee the process. In the process of name approval there are certain words which slowdown the process such as law, media, bank and finance. Using such words can delay the process by days or weeks.
For expediting the process, select a name which:
Name can be for 60 days and it can be for another 60 days by filing an extension.
2. Company Registration
After the name approved by Registrar of Companies, incorporation application and documents will be processed in few hours. Application mightget delayed when people from certain countries apply which implies that additional interrogations are required to be performed by the government authorities.
Post Registration Requirements
An email will be received from the Company Registrar. An email will confirm about the incorporation and informs Company Registration Number. This will be an official certificate of incorporation.In Singapore paper certificates are no longer uses, although on the payment of S$50 fee, the Company Registrar will give it. Usually, the processing time takes 5 days.
Company business profile is required to be created by the Company Registrar after completion of the registration process in Singapore.
Following information is included:
One can proceed with all legal and contractual tasks which are required to be performed after receiving an email notification and business profile.
In Singapore, there is a wide choice of banks such as HSBC, Standard Chartered, Citibank, DBS, OCBC, and UOB. If one can visit Singapore then they can evaluate its facilities.
If one is engaged in certain type of businesses then there is a requirement of special license. It applies to those companies which perform activities related to:
If the annual revenue of a company will exceed S$1 million then there will be a requirement of GST. After receiving GST registration, one need to charge additional 7% for the goods and services and money in relation to this turn it over to the Singapore Authorities.
After company incorporation, annual filing compliance are need to be complied with.
Annual income tax filing formalities are also required to be complied with. Which are defined in the Singapore Income Tax Act.
Singapore- Built for Business