Things Locals and Foreign Entrepreneurs Should Know About Company Incorporation in Singapore
April 22, 2022
April 22, 2022
Like in most countries, it takes a lot of work to start a business in Singapore. Setting up a company and finding your way around the saturated and competent business hub in the country may become even more challenging if you don’t know where to start. Even though Singapore remains on the list of business-friendly countries, as a would-be startup owner, there is more than one thing that you should consider. Company incorporation services can indeed take the weight off your shoulders when it comes to company incorporation Singapore because they will take care of everything related to business formation. However, it is essential to understand what these service providers are getting into. At the end of the day, transparency plays a significant role in establishing customer trust. If your service provider does not involve you with their plans, it is your wake-up call to turn to a more reliable business partner.
We have gathered some of the most asked questions when company incorporation in Singapore is being brought up in a conversation. We have also listed these questions below and some answers to tell you more about company incorporation. Continue reading.
What Should I Know as I Plan to Start My Company in Singapore?
It takes more than a compelling business plan to successfully set up a company in a business hub like Singapore. Do not take a business plan for granted because it will also ensure that your startup achieves its goals on time.
Before you register your business, here are a few things you need to take note of:
- Before registration, any startup name should be approved by the Accounting and Corporate Regulatory Authority (ACRA).
- An emerging business should appoint at least one resident director. After that, you can add an unlimited number of resident and non-resident directors. They should pass the requirements, be at least 18 years old, have monetary resources, and be free of illegal charges.
- Shareholders should be part of your company. You can have at least one, or up to a maximum of fifty shareholders. Take note that they may or may not be one of the directors. Local and non-local individuals or companies can become shareholders in a Singapore startup. Even a business that is composed of 100% non-local shareholding is acceptable.
- Singapore’s regulatory bodies require hiring a qualified corporate secretary within six months of a business’s establishment. It is best to reach out to a corporate service provider because they know when it is crucial to appoint a secretary for your startup. Ensure that your corporate secretary is not a sole director or shareholder because the laws do not allow it.
- To successfully make a breakthrough in the Singaporean market, you need at least S$1 as a paid-up capital (also known as share capital). This amount is not fixed as Singapore’s businesses’ rules, and regulations are ever-changing. Catch up with these changes by looking them up online or consulting your service provider.
- You also need to provide an office address as a part of the company incorporation process. It can be any commercial or residential place in territories under Singapore’s jurisdiction. But be careful not to provide a PO box because the laws do not permit it.
- If you register a company in Singapore, there are perks like tax exemptions and incentives. All this depends on your returns, though. For more details about business taxes in Singapore, it would be best to refer to the country’s corporate tax guide.
What Do I Need If I’d Like to Incorporate a Company, But I’m not a Singapore Resident?
Company incorporation in Singapore is not yet done after completing the requirements mentioned above. Many things should be considered for a business person who is not a Singapore resident but would like to consider setting up a business. But there is a solution to this concern.
A foreigner vying for a place in the Singaporean business landscape should engage in an expert. A professional corporate service provider can help non-Singapore residents with company registration seamlessly under the country’s laws through appropriate entities and organisations.
The good thing is that non-Singapore residents are not required to comply with a Singapore work visa to form a private limited company. Foreigners only need a visitor visa if they need to attend activities related to their company. However, you will not be allowed to work for the company in Singapore without a work visa. While is it is an easy start; foreign startup owners should work with a local director whose residency is under Singapore’s laws. Doing this also completes the minimum requirement of one resident director. Additionally, you can appoint a local director who will represent you on your behalf.
As a non-Singapore resident, you only need to be physically present if you intend to open a bank account at any bank based in Singapore. Otherwise, you do not have to fly to the country for company registration and work permit processes.
How Long Does It Take to Register a Company in Singapore?
As a country ahead of its time, almost everything can be done online in Singapore. Even registering a company in the country is computerised, and the well-optimised technologies make the process as fast as possible. Given that convenience, it still depends on some circumstances.
To make things easier from the get-go, do not miss these steps:
New company names registered under Singapore are either approved or rejected within an hour of application. But there is an exception for company names with specific words, like bank, finance, law, and media, among others. In this case, the corresponding external government authority has to review and approve this. Company name approval may take days or even weeks under this condition.
Company registration can be completed within hours when your company name is approved and all paperwork is signed. Prepare the information of your company’s shareholders and directors in case of authorities request them.
Can I Expedite Company Incorporation Singapore?
Yes, you can! Not only that you can make the process faster, but you can also make it easier. Turn to ContactOne now, and we will help form your company in Singapore. Whether you are a local or not, it is a smart move to work with us. Knowing that we can help set up, run, and grow your business, you can focus on more key elements to achieve a profitable business venture. Call us on +65 6333 0633 or +65 8666 3633.