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register a company
September 25, 2023
Register a Company: Do Businesses Have to Be Registered?
Carrying out regular profit-generating activities requires registration with the Accounting and Corporate Regulatory or ACRA in Singapore. Unless you are exempted, registration is not necessary anymore. Company registration in Singapore is vital to obtain essential legal documents and certifications, making your business legitimate in the eyes of customers, investors, and partners.
If you are planning to do business in Singapore, register a company because it comes with various benefits that your business can take advantage of in the long run. Credibility plays an important role in business. You can start building your name and reputation after completing the company registration process.
Find out the reasons why you need and how to register a company in Singapore with ACRA in this article. Continue reading below!
Reasons for Company Registration
ACRA requires business owners to register their companies for several reasons. Find out below:
Legal Compliance
Registering a company in Singapore with ACRA is essential to ensure that your business operates legally and complies with the regulatory requirements established by the Singapore government.
ACRA serves as the authoritative body responsible for regulating and overseeing business entities in Singapore. Registering your company ensures compliance with the Singapore Companies Act, which outlines the legal framework for company incorporation, maintenance of statutory records, and filing of financial statements. Adhering to these requirements not only demonstrates your commitment to operating within the bounds of the law but also safeguards your business’s reputation and protects the interests of your stakeholders.
Moreover, you gain access to various benefits and privileges offered by the Singapore government by operating as a registered entity, such as tax incentives and grants, creating a solid foundation for long-term growth and success.
Business Entity Identification
Registration with ACRA provides businesses with a unique identification number known as the Unique Entity Number (UEN)—an official identifier for the company in all business transactions, establishing its distinct presence and facilitating seamless communication with government agencies, financial institutions, suppliers, and customers. This unique identification number is essential for various purposes, including opening bank accounts, entering contracts, filing tax returns, and participating in government procurement processes.
By obtaining a UEN through registration, businesses gain credibility, professionalism, and a solid foundation for building trust and establishing their brand identity in the marketplace. It also ensures the company is easily recognisable and traceable, enabling efficient and transparent business operations.
Business Contracts and Agreements
ACRA registration plays a pivotal role in enhancing a company’s credibility and facilitating the formation of contractual relationships with various stakeholders, including customers, suppliers, and other business partners.
A company registered with ACRA demonstrates its commitment to legal compliance and transparency, instilling confidence and trust among potential partners. Many entities, such as government agencies, financial institutions, and larger corporations, often require proof of ACRA registration as a prerequisite for engaging in business agreements.
This requirement validates the company’s legitimacy, financial stability, and adherence to regulatory standards. By fulfilling this criterion, the registered company can access a wider range of business opportunities, including lucrative contracts, partnerships, and collaborations.
Therefore, ACRA registration provides a competitive edge and facilitates smoother and more efficient business transactions by streamlining the verification process for potential partners.
Public Perception and Investor Confidence
Registering a company adds legitimacy and credibility, instilling a sense of trust and confidence in potential customers, clients, and investors. When a business is registered with ACRA, it becomes a recognised and accountable entity in the eyes of the law. This official recognition demonstrates that the company has fulfilled the legal requirements and is committed to transparency, compliance, and ethical business practices.
Prospective clients often prefer to engage with registered companies, as it assures that they deal with a legitimate and trustworthy organisation. Similarly, investors are more inclined to invest in registered companies as it reflects professionalism, accountability, and adherence to regulatory standards. ACRA registration enhances the company’s reputation, increases its credibility in the marketplace, and sets it apart from unregistered or unverified entities, establishing a strong foundation for building relationships and attracting opportunities, ultimately contributing to the long-term success and growth of the business.
Record Keeping and Corporate Governance
One of the mandates enforced by ACRA is that companies must maintain proper books of accounts, financial statements, and registers as part of their registration requirements. Maintaining proper books of accounts and financial statements serves multiple important purposes.
Firstly, it ensures transparency within the organisation. Keeping accurate and up-to-date records of financial transactions provides a clear and comprehensive view of its financial position, activities, and performance. This transparency is essential for stakeholders, such as shareholders, investors, creditors, and regulatory bodies, to assess the company’s financial health and make informed decisions.
Secondly, maintaining proper books of accounts and financial statements promotes accountability within the organisation. It helps in tracking the inflow and outflow of funds, identifying sources of revenue, and monitoring expenses. With this information readily available, the company can ensure that its financial resources are used responsibly and under applicable laws and regulations. It also enables effective internal control, as discrepancies and irregularities can be identified and addressed promptly.
In addition, the requirement to maintain proper records aligned with good corporate governance practices is crucial. Good corporate governance involves establishing a framework of rules and practices that guide the company’s management and operations, ensuring ethical behaviour, accountability, and protection of stakeholders’ interests. Keeping accurate books of accounts and financial statements is an essential element of good corporate governance because it helps establish trust and credibility with stakeholders and demonstrates the company’s commitment to transparency, integrity, and compliance.
To Sum It Up
ACRA registration in Singapore is essential for legal compliance, establishing a unique business identity, forming trustworthy relationships with stakeholders, enhancing public perception and investor confidence, and maintaining proper records for transparency and good corporate governance. It offers a range of benefits that contribute to the long-term growth, success, and reputation of the company.
Need Help Registering a Company in Singapore?
At ContactOne, we ensure that our clients receive dedicated assistance when they register a company by providing them with tailored services. Contact us at +65 6333 0633 and +65 8666 3633 to take advantage of our expertise and support.
December 14, 2022
How to Register a Company in Singapore
Are you planning to start a company in Singapore? It looks like you need more than just a company name to begin with. Singapore is known to be a business-friendly place, wherein setting up a company is not as complex as other business hubs worldwide. However, the policies in place to maintain a smooth registration process do not mean business incorporation happens overnight. Days, effort, and requirements must be available to register a company.
This article will take you into an in-depth discussion of everything you need to know to register a company. With a detailed guide, you will not have a hard time opening and doing business in Singapore. Continue reading below and learn more about the requirements, procedures, and timeline of company registration in the Singaporean business landscape.
Starting a Business in Singapore
Your first question would probably be, “How to start a business in Singapore?” The idea of doing business in an accommodating market like Singapore will always be inviting. The country imposes one of the most pro-business laws and regulations, making this place ideal for investments and various corporate ventures. To start a business in Singapore, the following must be considered accordingly:
1. Choose the Desired Business Structure
Before anything else, the first step to starting a company is selecting your desired business structure. There are four types of business structures: sole proprietorship or partnership, limited partnership, limited liability partnership, and company (you may refer to the Accounting and Corporate Regulatory Authority or ACRA to learn more).
Your form of business is vital because it determines not only your start-up’s limitations but also the risks and overall corporate organisation. In other words, your business structure is the basis of the types of shares you will be handling, the corresponding share transfer rules, and the company’s administrative liabilities, such as tax rates, scalability, and compliance responsibilities.
It is essential to note that choosing a structure for your start-up relies on a few factors. Here are some questions to guide you when selecting a business structure in Singapore:
- How much capital are you willing to invest?
- How many owners will be there?
- What liabilities and responsibilities are there to assume?
- What risks are you ready to take?
- What are the advantages and disadvantages of the business structures?
- Is the business easy to close or not?
2. Register the Company with Singapore’s Company Regulator
If you want to do business in Singapore, registering a company with ACRA is a legal requirement you should take into account. As long as you carry out any activity for profit on an ongoing basis, you must register a business unless exempted. Learn more about the terms and conditions of registration exemption on ACRA’s website.
After choosing a company name and submitting it to a name application via an online registration and filing portal, Bizfile+, you may proceed to company incorporation. You will be given one hundred twenty days from the date of the name approval to complete the incorporation process. You can also check the additional approvals for specific company names, requirements to state your company name on all correspondence, and the difference between company name and trademark.
3. Set Up a Corporate Bank Account
The main reason for setting up a corporate bank account is to segregate your personal and business finances, which include business assets, cash flows, expenses, and more. Managing your business’ finances is possible without mixing up your money. This way, you can protect yourself from any liabilities that may arise since there is a noticeable separation of your personal and business finances.
Using a single bank account to manage funds may treat your business money as your own. This will put your finances at risk by creditors who seek to pierce the corporate veil. Moreover, suppose you have a separate business account. In that case, it allows you to track your company’s performance more closely, resulting in a close to an accurate evaluation.
How Long Does It Take to Register a Company in Singapore?
The timeline for company registration varies. Some applications are completed in a few hours, while others take days. The timeframe is mainly determined by how fast each shareholder and director can send their documentation for verification to the corporate secretary. The requirements for company registration in Singapore include the following:
- Company name
- Brief description of activities and Singapore Standard Industrial Classification (SSIC) code
- Details of shareholders and directors
- Registered Singaporean business address
- Share capital details
- The company’s constitution
Make Company Registration in Singapore a Breath of Fresh Air with ContactOne
At ContactOne, we provide an array of corporate solutions to help business owners start, manage, and grow their enterprises. Our expertise cover company registration, secretarial services, accounting, and tax. If you want to learn more about us and what we can do to help your business, get in touch today. Call us on +65 6333 0633 or +65 8666 3633. You may also explore our website and discover helpful insights.
March 29, 2022
Company Registration Checklist: Make Sure to Complete These Documents
Every business transaction a company undergoes comes with a document that legitimizes and records the negotiation. Without documents, you will be prone to disputes you can’t counter and risks you may find hard to mitigate. That is why you need to have the essential paperwork, and you have to start from the company registration documents.
Company Registration Documents: The Complete Checklist
1. Company Name – your company name is as important as the services or products you offer. It must represent your brand values because this is what your target market remembers. So, before anything else, finalize your company name and get approval from the Accounting and Corporate Regulatory Authority (ACRA).
2. Summary of the Business Activities – prepare a brief description of the primary purpose of your company and what it offers to the market.
3. Company Constitution – formerly referred to as Articles of Association, a company constitution details how a company can operate. It is a legal document that sets forth the rights and responsibilities of the people involved in the company. You may get the standard version of this document from ACRA, or you can create one yourself.
4. Signed Consent to Act as a Director – this written consent specifies the agreement made by the director to be a part of the company. Failure to provide this document will make the appointment void. Note that you have to appoint at least one resident director for your company, while you can appoint an unlimited number of directors, whether they are residents or non-residents.
5. Signed Consent to Act as a Company Secretary – a company secretary plays a vital role in the operation of a business. That is why it is essential to provide such a document when you register a company. One couldn’t act as a company secretary without this document.
6. Directors’, Company Secretary’s, and Shareholders’ Particulars – this document should include essential details of the aforementioned people, such as their names, nationality, residential address, and date of birth. Moreover, don’t forget to specify the rights and responsibilities of the signatories.
7. Documents for Know Your Customer (KYC) Due Diligence – if you are working with a corporate service provider, you have to provide proof of identity and address as well as information regarding the stakeholders’ professional background. Your corporate service provider will need this document to conduct a KYC due diligence as required by the ACRA.
Want to Start Your Business with ContactOne? Bring These Documents
Some business owners in Singapore find the company registration process complicated. If you don’t want to undergo such a procedure or you simply don’t have the time due to your hectic schedule, we can help you set up your business.
Just reach out to us and provide us with the documents needed, and we’ll take care of the rest. Refer to the list below:
For Singapore Residents
If you are a resident of Singapore, we only need your identification card. It can either be your NRIC or FIN. This also applies to holders of eligible Employment Pass, Dependant’s Pass, Long-Term Visit Pass, and Student Pass.
For Singapore, Residents Partnering with Foreign Residents
We only require identity cards for Singapore residents. On the other hand, we need foreign residents to verify their personal information and proof of participation in the company. There are two ways to do this, depending on whether or not you are physically present in Singapore.
1. If you are a foreigner residing in Singapore, we need your passport and proof of residence. You can submit your utility bills or bank statements as proof of residency.
2. If you are a foreigner who is not physically present in Singapore, we will give you a Letter of Intent to incorporate a company in Singapore for your authorization.
A notary public in your location must notarize the letter of intent and a copy of your passport.
Note: Documents not written in English must be translated.
For Companies with Corporate Shareholders
If the company you will set up will have one or more corporate shareholders, we will require the following additional documents from you. These papers are necessary for the incorporation.
1. A Board Resolution from the Singapore Company – this document must lay out that during the incorporation process, there is an authorized person to act on behalf of the corporate shareholder. Their role includes signing the papers for incorporation.
2. A Board Resolution Approving the Setting Up of a Singapore Private Limited Company – this document must have the essential information, such as the first appointed directors, other shareholders, shares the corporate shareholder will hold, and the total share capital on the new company’s incorporation.
3. Company Profile – Singapore companies can get a copy of their recent Company Profile from ACRA. Meanwhile, foreign companies must provide a Certificate of Incorporation and a Company Profile from their country of residence.
5 Reasons Why Documents Are Important in Businesses
Compiling documents can sometimes be an inconvenience, not just for businesses but also for individuals. Imagine having to secure documents every time you need to enroll in a school, apply for a job, opening a bank account, and so on. Regardless, compliance with the requirements helps you in more ways than you can imagine, especially for companies.
Documents aren’t just for formality’s sake. Here are five reasons they are essential for your company:
1. It helps you build your reputation—making you a trusted company for the suppliers, customers, and employees.
2. It governs the flow of your business operations for a smooth-sailing business procedure.
3. It sets out the rules and regulations everyone in your company must follow and giving you the right to hold them accountable in instances of violation.
4. It increases opportunities and decreases risks.
5. Legally binding documents like contracts prove that a mutually beneficial agreement is present between two or more parties.
If you are about to set up a company, start processing your documents now. For more information about company registration in Singapore, feel free to visit our website. We’ll be happy to be of assistance!