Setting Up a Local Company in Singapore

Private Limited Company Set Up

When going through the process of setting up a local company in Singapore, you may choose to register a private limited company.

A private limited company is well-known to be one of the most common entity types selected by Singaporean entrepreneurs.

There are many positives of setting up a local company in Singapore as a private limited company.

A private limited company provides entrepreneurs with limited liability. Furthermore, a private limited company has the ability to have many shareholders. In fact, a private limited company allows business owners to have up to 50 shareholders!

More importantly, setting up a local company in Singapore as 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!

Advantages of Setting up a Local Company in Singapore as a Private Limited Company

  • When setting up a local company, note that a private limited company is an independent entity. Therefore, the company’s officers (i.e. the directors and shareholders) are not affected by the Singapore local company’s liabilities.
  • A Singapore private limited company is considered a tax resident. This is regardless of the nationality of its directors. Thus, it is eligible for local tax exemptions and incentives provided by the government.
  • All profits of local companies are taxable at 17% flat rate . This is the corporate income tax. Dividends will not add on to the local company’s shareholders’ personal taxes.
  • For the first three years from the date of setting up a local company, there are partial tax exemptions. This is only for companies set up from the year 2020 and onwards.
  • Ownership of a private limited local company can be transferred easily through a transfer of ownership of company shares.

 

Disadvantages of Setting up a Local Company in Singapore as a Private Limited Company

  • Failure to comply with the Singapore Companies Act when setting up a local company will result in penalties. Failures to comply may even result jail time in serious cases and offences.
  • Starting a business in Singapore requires proper paperwork. All documents must be verified and filed for annual reporting. Any important changes that must be reported to ACRA after setting up a local company in Singapore. This includes changes such as the Annual General Meeting, and annual returns.
  • There is a higher maintenance cost, such as secretarial fees and compliance fees. These fees will be incurred when you register a private limited company in Singapore.
  • Entrepreneurs must follow compliance requirements from ACRA  and the IRAS when setting up a local company in Singapore.

Requirements when Setting Up a Local Company in Singapore

  • There has to be a minimum 1 local director when setting up a local company.
  • A foreigner who wish to register a private limited company in Singapore, must appoint a nominee director. Foreigners are also required by law to engage the company incorporation services of an external consulting firm.
  • The appointed director must be a minimum of 18 years of age. They must not be bankrupt during the time period of setting up a local company in Singapore.
  • There must be a minimum of 1 individual or corporate shareholder.
  • A company secretary has to be appointed within 6 months from incorporation date.
  • There has to be a minimum initial paid-up share capital of at least SGD $1.
  • The applicant has to state a Singapore registered office address when they incorporate a company in Singapore.

Key Requirements of Business Registration in Singapore

What are the Singapore Company Incorporation Fees inclusive of?

  • ACRA’s name search and company name reservation.
  • ACRA company incorporation application fees.
  • Provision of 1 named corporate secretary.
  • Company memorandum and Articles of Association (M&AA).
  • Share certificates as proof of shareholders’ ownership of the new Singapore company.
  • Setting up of the company’s statutory registers and records.
  • The director’s resolution for 1st Bank Account Opening. Examples of Singapore banks include OCBC, UOB, DBS and Maybank.
  • Advisary on setting up a local company in Singapore as either a Singaporean or foreigner. We also provide advice and expertise on other corporate services. This includes accounting, Singapore taxes, immigration, attaining a Singapore work pass and more!

Required Information for the Set Up Company Application

  1. A registered business address.
  2. Proof of residency. This is applicable for foreign officers only.
  3. Preferred bank to open a corporate bank account. Popular banks include OCBC, UOB, DBS and Maybank.

 

Contact WLP Group

WLP group offers company registration services for all entrepreneurs seeking to incorporate a company in Singapore. We will be able to advise you on the documents. We will also be able to provide advice on any other HR matters that need to be prepared and provided prior to the process of company registration in Singapore.

WLP Group can assist those interested setting up different kinds of local companies. For example, WLP Group can help entrepreneurs looking to register a private limited company in Singapore. For more information on how we can help you, contact us today for a free Singapore company registration consultation.

Before Setting Up a Local Company in Singapore, should I be aware of the Procedure to Strike Off a Company?

Yes, you should! When setting up a local company in Singapore, you have to be aware of the strike-off procedures. When the board of the company decided to strike-off the company, on condition that they fulfiled the above requirements, they have to first submit the application to the Company Registrar. The application will take about 7 working days to process. The time taken depends on the complexity of the case. This is assuming that the documentations submitted are sufficient.

Only when ACRA is satisfied that the company has met all the requirements for strike-off, will they then issue a strike off notice to the company at its registered office address.

They will also send a notice to the officers’ residential address and also the tax authorities in Singapore. The notice will be sent addresses used in the setting up a local company application.

After 4 months, if there are no objections from the relevant parties, a final notification will be sent out to inform the parties that the company will be struck off from the Register with the effective date. Any person who would wish to object to the company’s striking off can do so during this period.

The entire process of striking off the Singapore company will take approximately 5 to 6 months.

3 things to ask when setting up a company in Singapore 

Setting up a local company in Singapore is a rewarding decision with many opportunities. However, the process of starting any business is a challenge. With proper guidance from company incorporation Singapore specialists, setting up your dream company can become reality. 

There are many factors that can contribute to the challenges, such as startup capital or assets. There are also many risks you will take, that may lead to loss and failure. On the other hand, the achievements and successes will be worth the struggles. Afterall, setting up a company in Singapore and maintaining its productivity is due to the hard work that is invested. 

How do I go about setting up a local company

Even though setting up a local company in Singapore can be challenging,  the first important steps can be completed within 3 days with the right assistance. Company incorporation Singapore specialists have summarised the process in 3 steps. Choose your business entity, set up  your company and open a bank account. 

There are several laws that one must abide by when setting up a local company. These laws are governed by the Singapore Companies Act and must comply under ACRA and IRAS (Inland Revenue Authority of Singapore).  The details  that are required by them are as follows: 

  • Minimum of one shareholder. 
  • Company names must be approved by ACRA. 
  • Company secretary required and must be a Singapore resident. 
  • At least S$1 of paid up capital. 
  • At least one director must reside in Singapore. 
  • A physical office address must be registered.

There are several laws that one must abide by when setting up a local company. These laws are governed by the Singapore Companies Act and must comply under ACRA and IRAS (Inland Revenue Authority of Singapore).  The details  that are required by them are as follows: 

  • Minimum of one shareholder. 
  • Company names must be approved by ACRA. 
  • Company secretary required and must be a Singapore resident. 
  • At least S$1 of paid up capital. 
  • At least one director must reside in Singapore. 
  • A physical office address must be registered. 

These are the first few steps to go through when setting up a local company in Singapore. There are still many more to come which can be assisted with company registration Singapore specialists. This is the business processes that follow incorporation.

They include post-registration activities such as: licenses and permits, customs registration, goods and services tax registration and registration with the CPF board. 

Most activities can be carried out online and are easy to follow through. There are many factors in setting up a local company in Singapore. Company formation Singapore specialists are there to guide you with all necessary steps and actions required. The experts know the Singapore law and will follow the process all while adhering the rules and regulations.

What type of company should I incorporate?

There are 4 types of companies to consider when setting up a local company in Singapore. These include: sole proprietorship, partnership, private limited company and limited liability partnership. 

In Singapore, company incorporation specialists suggest that the best entity type  would be a private limited company. This is because the liability is limited to the amount remaining unpaid on shares. There are also more tax-superior benefits for private limited companies. 

How much does it cost to set up a company in Singapore?

The cost of setting up a local company in Singapore depends on the method chosen to register your business. As a new business owner, setting up a local company with ACRA can cost up to S$315 SGD. This cost is solely applicable for the name of the company and the registration fees. This is the minimum amount required  for a new company setup in Singapore.

However, if you are new to the market and need assistance, it is recommended to invest in company incorporation Singapore specialists that know what they are doing. 

At WLP group, for example, we offer a wide range of services that go further than the general incorporation process. Our Singapore incorporation fees can vary depending on services acquired by you. However, WLP Group offers an incorporation package of up to S$800 SGD that will consist of 1st year secretarial service that is worth S$700 SGD. At WLP group, we have the lowest price guaranteed for company incorporation Singapore fees.

In summary 

In this article we discussed three important questions to ask when setting up a local company in Singapore. Having a concise plan and action put to these questions can help in the long-run while setting up a local company. It is the foundation to any incorporation process as it gives the new business owner an in-depth understanding of setting up a local company in Singapore. 

At WLP group, we assure you that we can make the process as smooth sailing as possible for you. Do feel free to contact us for a free consultation on incorporation for more information.

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