Company Incorporation Singapore (Private Limited)

company incorporation singapore

Private Limited Company in Singapore 

Here is what you need to know about company incorporation Singapore:

 

Advantage

  • 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 company can be transferred easily through a transfer of shares.

Disadvantage

  • Governed by strict rules and regulations by the Singapore Companies Act, failure to comply will result in penalties and even jail time in serious case.
  • 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.)
  • Higher set-up cost
  • Compliance requirements from ACRA/ IRAS

Requirements (Company Incorporation Singapore)

  • 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
  • A Singapore registered office address

INCORPORATION OF PRIVATE LIMITED COMPANY

FROM S$688 NETT

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

REQUIRED INFORMATION: 

  1. Registered Business Address
  2. Proof of Residency for Foreign officer(s) only
  3. Preferred Bank for Bank Opening (OCBC/ UOB/ Maybank)
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