Everything You Need to Know About Company Formation in Singapore
Singapore has a thriving economy thanks to its ease of doing business. This includes the working environment and the ease with which you can register a new business or company. Similar to other countries around the world, you must adhere to the law and other regulations set by Singapore’s authorities.
For the citizens, you can self-register a new company. However, if you’re a foreigner, the law doesn’t allow for self-registration. Therefore, you must seek a company formation service to help you through the complex process.
The most common type of company formed in Singapore is the private limited liability company. In this guide, you’ll learn more about company formation and the requirements.
What You Must Have to Register a Company
- The company name – This name must receive approval from the relevant authority before you can use it as your company name.
- Directors – The law requires you to have no less than one Resident Director living in Singapore. They can either be a permanent resident, a citizen anyone with a valid dependent pass or an employment pass. In addition, the directors must be 18 years and above, have no criminal record and not bankrupt. There’s no limitation to the number of directors and they need not be shareholders.
- Shareholders – If you register a Private Limited Company, the law allows you to have 1 to 50 shareholders. They can be local or foreign entities or individuals. After successful incorporation, you can transfer or issue the shares to the shareholders.
- Your company will be referred to as an Exempt Private Company if your company has no more than 20 shareholders, and no corporation has any beneficial interest in its shares.
- A company secretary – Once you’ve incorporated your company, the law requires you to appoint a company secretary within 6 months of incorporation. However, a shareholder or sole director cannot be a company secretary. Furthermore, the secretary must be a Singapore citizen. Finding a secretary can be a daunting task, but you can seek company secretarial services to avoid going through multiple papers to find the right fit.
- Paid-up capital – This amount must be no less than S$1 although you can top it up after incorporation. Companies don’t use their authorized capital and this amount can be preference shares, ordinary shares or any other shares.
- A registered address – Every local business must have a registered address. The address can be commercial or residential, but not a post office box. The Home Office scheme doesn’t allow individuals to conduct small businesses in their residences. Besides, it’s not professional.
- Taxation – Singapore offers one of the best tax incentives and exemptions
- For your first S$300,000, you’ll pay 8.5% in taxes, afterward, you’ll pay 17 percent.
- No capital gains or dividends taxes
- Required Documents
You must present these documents to the Company Registrar:
- The Company Name
- A description of the business activities
- Shareholders details
- Directors details
- A registered address
- Company secretary details
- Memorandum and Articles of Association. You can get a standard MAA at the Company Registrar which can guide you on how to craft yours.
There you go. Everything you need to know about company formation in Singapore. With these pointers, you have a head start and you can prepare yourself in advance by gathering the necessary documents so you can have a smooth process.
“Written in collaboration with:
Corporate Services Singapore
65 Chulia Street OCBC Centre, #46-01 Singapore 049513
+65 6602 8286 | email@example.com”