Company Incorporation (Setting Up Local Private Limited Company in Singapore)
A private limited company is one of the most common entity types used by entrepreneurs to set up new businesses. Aside from limited liability and ability to have many shareholders, setting up a private limited company gives the new business a status that will make it easier to raise capital. To register private limited company Singapore, contact our consultants for a free Singapore company registration consultation!
- When setting up a local company, note that a Private Limited Company is an independent entity. It can sue and be sued in its own name hence, the Company’s officers (directors or/and shareholders) will not be affected by the company’s liabilities
- A Singapore Private Limited Company is considered a tax resident regardless of the nationality of it’s officer(s) hence, it is eligible for local tax exemptions and incentives provided to Private Limited Companies by the government.
- Profits are taxable at 17% flat rate. (Corporate Income Tax). Dividends will not add on to shareholders’ personal tax.
- Partial tax exemption (YA2020 onwards) from corporate tax for the first three years with effective from date of incorporation irregardless of date of operation (Save up to S$17,000 in tax payable a year)
- Ownership of a private limited company can be transferred easily through a transfer of shares.
- Governed by strict rules and regulations by the Singapore Companies Act, failure to comply when setting up a local company will result in penalties and even jail time in serious case.
- To set up a local company and start a business in Singapore requires proper paperwork and filing for annual reporting and any changes in the company details (Director’s Resolution, Annual General Meeting, Annual Return etc.)
- Higher maintenance cost (Secretarial fee, Compliance fee etc.) when setting up a local private limited company in Singapore
- Higher cost to set up local company in Singapore
- Compliance requirements from ACRA / IRAS
Requirements (Company Incorporation Singapore)
- To set up a local company in Singapore, there has to be a minimum 1 local director (A foreigner who wish to set up a private limited company in Singapore must appoint a nominee director)
- Appointed Director must be at least 18 years of age and must not be bankrupt at the time of appointment
- Minimum 1 individual or corporate shareholder
- A Company Secretary has to be appointed within 6 months from incorporation date
- Initial paid-up share capital of at least S$1
- Registering a Singapore registered office address when setting up a local company
FEES INCLUSIVE OF:
- ACRA Name Search & Reservation
- ACRA Application Fees
- Provision of 1 Named Secretary
- Company Memorandum & Articles of Association (M&AA)
- Share Certificate(s)
- Setting up of Company’s Statutory Registers and Records
- Director’s Resolution for 1st Bank Account Opening (OCBC/ UOB/ Maybank)
- Set-Up Advisory
- Registered Business Address
- Proof of Residency for Foreign officer(s) only
- Preferred Bank for Bank Opening (OCBC/ UOB/ Maybank)