21 Jan All You Need to Know about Company Setup in Singapore
Company Setup Singapore in the Year 2020
To set up a company and start doing business in Singapore, a company must be registered with the Accounting and Corporate Regulatory Authority (ACRA) and abide by the Companies Act.
Company setup Singapore service offered by W.L.P. helps both locals and foreigners with Singapore company formation, which generally takes less than an hour to register a company provided that all the necessary documents are prepared well in advance.
Pre-Incorporation – Key requirements to register a private limited company in Singapore
- At least 1 local or resident director
- At least 1 shareholder (individual or corporate entity)
- At least 1 company secretary
- At least S$1 for initial paid-up share capital
- A physical Singapore office address
The company must have at least 1 local director who is ordinarily resident in Singapore (either Singapore citizen, Singapore permanent resident or person who holds an EntrePass, Employment Pass or Dependant Pass). Director must be at least 18 years old and must not be bankrupt or subjected to any automatic disqualification.
There is no requirement that a director has to be the shareholder. A foreigner can’t run a business in Singapore if the company has no resident director. Hiring a local nominee solves the problem. Company setup Singapore service provided by WLP Group solves this problem on your behalf.
Singapore Companies Act allows a minimum of 1 and a maximum of 50 shareholders for a Singapore Private Limited Company. Under the company setup Singapore law, a shareholder can either be a natural person or a legal entity such as another company or a trust.
A director and shareholder can be the same or different person. 100% local or foreign shareholding is allowed.
All private limited companies must appoint a competent company secretary who has the prerequisite domain knowledge and is responsible for ensuring all regulatory compliances within 6 months of incorporation.
It is crucial to note that in the case where there is only a sole director or shareholder, the same person cannot act as the company secretary. The office of company secretary also cannot be left vacant for more than 6 months at any one time under the company setup Singapore law.
The minimum paid-up capital for registration of Singapore companies is S$1. Under the company setup Singapore law, the paid-up capital can be increased anytime after incorporation of the company.
Each company is required to have a local registered address in Singapore where all the official correspondences are send to that address. The registered address must be a physical address and must not be a P.O. Box under the company setup Singapore law.
Individual may also use the residential address as the business address, but you are advised to seek prior approval from HDB authority or URA for private residential property.
Documents required for Company Incorporation
The following documents are required for company registration/company setup in Singapore:
- Company name
- A brief description of business activities
- Registered address
- Company constitution
For Local/PR Directors or Shareholders
- Scanned copy of Singapore NRIC (Front and Back)
For Foreign Directors or Shareholders
- Scanned copy of foreign NRIC (Front and Back)
- Scanned copy of passport
- Latest 3 months proof of residency (e.g. a utility bills, telephone bills etc.)
- Notarized documents
For Corporate Shareholders (if any)
- Scanned copy of business profile
It is important to take note that the process of incorporating a company/company setup Singapore can be aggravating as well as time-consuming if you encounter this for the first-time. Here’s an overview of each task that we could assist you step-by-step.
Step 1: Get the company name approved
Think of at least 3 business names which best suit your business nature and the branding that you want to bring across to your clients.
The notification of approval or rejection of the preferred name usually received within an hour. In rare cases, if the approval needs to be referred to another government agency for further vetting, the process may take a week or two.
Upon approval, a company can reserve the name for a period of 120 days. If it does not incorporate the name within that period, the name is released and can be reserved by another person.
Step 2: Register with ACRA
Once the incorporation documents have been prepared, a company can be officially registered with ACRA. The registration process itself takes less than an hour.
Step 3: Documents Issued by ACRA
Upon successfully registering the company, ACRA will issue the following documents which serves as the confirmation of incorporation:
- Certificate of Incorporation
ACRA issues an e-Certificate of Incorporation, which is an official email from ACRA that contains a statement that the company has been incorporated and the Unique Entity Number (UEN) issued to the company date of incorporation.
- Company Business Profile
The company business profile also known as BizProfile is a PDF documentary proof that issued by ACRA which contains the following details about the company:
- Company name and registration number
- Date of incorporation
- Principal activities
- Paid-up capital
- Registered office address
- Details of directors, shareholders, and company secretary
The e-Certificate of the incorporation and the business profile are sufficient for all corporate needs such as opening bank accounts, signing office lease agreements, subscribing to essential services like utilities and internet services.
After registering the company, you can officially start doing business under its name immediately. However, here are a few post-incorporation tasks that you should bear in mind.
Opening Corporate Bank Accounts
You are now ready to open a bank account. Our team will assist you and recommend banks that will be best suit for your needs and make an introduction to the bank executives.
Apply for Business Licenses
Singapore’s business environment has minimal bureaucracy and most industries do not require a license to be function. However, if your business is covered by a licensing requirement, we can assist you in obtaining it.
Singapore companies that expect to exceed S$1 million in taxable turnover in the next 12 months are required by law to register for GST (also known as sales tax or value added tax). Other companies with annual taxable turnover less than S$1 million are not required to register for GST but can still register voluntarily if it suits your needs.
Web services are the silent but vital backbone in today’s internet-driven world for everything from email to news feeds. Again, we provide web services that meet your needs and expectation.
If you or any of your foreign team members or even your family members who plan for relocating to Singapore, we can assist you in applying for a suitable work pass or visa.
Ensure that you are staying in compliance with Singapore company regulations (ACRA and IRAS) on an ongoing basis, as well as avoid unnecessary penalties or losses due to carelessness in company setup Singapore process. We provide range of services from accounting, tax compliance, corporate secretary, HR payroll, and recruitment services, so you can focus on managing your business and enjoying the fruits of your hard work.
Ready to get your company registered and incorporated today? Click on the button below now to redeem your special discount!