Steps To Setup A Company In Singapore In 2022
Published on 15th June, 2022
When it comes to creating a company in Singapore, this detailed guide will help you comprehend the many steps involved in the process. It is necessary to comply with a variety of regulations in Singapore to establish or run a business in this high-income economy.
The easiest approach to establishing or moving a business in Singapore is to form a private limited company. As a distinct legal entity, a Singaporean limited company protects its owners from liabilities that go beyond the value of their initial capital commitment. According to the Singapore Companies Act, anybody above the age of 18 may set up a business in Singapore. The effective tax structure is provided by registering the firm following these legislative criteria.
Requirements For Registering A Company In Singapore
The Accounting and Corporate Regulatory Authority (ACRA) in Singapore mandates that individuals who are 18 years of age or older register their company in Singapore by completing the steps outlined below:
Choosing The Name Of Your Business
It is the applicant's responsibility to come up with a proper business name and submit it electronically using ACRA's BizFile+ system for approval. It is only after receiving the go-ahead that the incorporation will get underway.
He or she must figure out how to organise his or her business. He can pick from a variety of company structures:
- The number of stockholders in a private corporation (limited by shares) is capped at 50.
- Exempt by the Minister: It has a limit of 20 individual shareholders with no company identified as a shareholder and has been granted exemption from all applicable taxes by the Minister.
- A company limited by shares with more than 20 shareholders usually raises money via public offers of shares or debentures.
- It is possible to form a non-profit organisation as a public company (which is limited by a guarantee) without having any shareholders at all.
Directors and other key personnel
The following stage is to nominate important members of your firm for day-to-day operations once you've settled on your company structure. The following jobs must be established for this:
- An organization's day-to-day operations are overseen by a director. He must be at least 18 years old, a Singaporean citizen, and the owner of an Employment Pass.
- When a business is formed within six months of incorporation, it is required to have a company secretary who is a Singaporean citizen. He must step down from his position to be the company's CEO.
- The company might designate a Chief Executive Officer or a Managing Director to be in charge of the day-to-day business operations. He doesn't need to be a member of ACRA for him to work.
- Within three months of establishment, unless exempted by the Companies Act, each company must appoint an auditor.
According to the company's desired form or structure, there should be a minimum of one shareholder and a maximum of 100 shareholders. In addition to their personal information, the company should also publish the entire amount that shareholders paid for their shares.
Even though there is no minimum paid-up capital requirement, the minimum issued capital should be $1.
Ordinary shares and preference shares are the most common forms of stock issued by a corporation.
The company's registered address
An applicant's registered address is required when applying. This address must be visible to the general public, but it does not have to be the location where the activities are being carried out.
An application for a position requires the submission of the company's constitution, which is a legal document that includes information such as these:
- The company's mission and core values
- Norms and Standards.
- Operational details and how they will be implemented
- A look at the director's responsibilities and rights.
Methods for Identifying the Accounting Period
Financial Year: March 31, June 30, September 30, or December 31 must be chosen by the applicant for company filings.
The Registration Process And Timeline
It takes Singapore's Accounting and Corporate Regulatory Authority (ACRA) about 1-2 working days to complete the registration process, which is automated. BizFile+ requires your SingPass and identification number to be used as login credentials.
To get a company registered, you must go through the steps outlined below:
How To Pick A Company's Naming
While you are about to set up new company in Singapore, you need to choose a name for your company that reflects the nature of your work. Once you've picked a name, run it via BizFile+ to see whether it's already taken. There are just a few exceptions to this general rule:
- It's the same as any other Singaporean company.
- The name comprises profane, derogatory, and filthy words.
- It has been ordered by the Ministry of Finance not to be done.
Making A Name For Yourself And Identifying Your Business's Goals
Registration of your business name with BizFile+, which costs S$15, is required before incorporation. Following approval, you will be given 120 days to incorporate or else your company's name will become accessible to anybody else who wants to use it. In select cases, the name will be sent to the appropriate authorities for their examination and approval.
This information should be included while registering the company name. Identifying your company's major and secondary business activities requires a search for the appropriate SSIC code.
Create A Business Name And An Address For Your Organization
Once the ACRA has approved the company's name, they will handle the business incorporation forms that have been filed.
If the application approval procedure seems to be taking longer than expected, it is because it has been postponed. If more inquiry is warranted, the appropriate government agencies will do it.
In terms of location, Singapore is an excellent option for businesses. Having a stable economy, a robust workforce, and business-friendly tax rules allows you to get up and running sooner, so you can spend less time mired in administration and more time expanding your firm.