New Company Set Up in Singapore | Incorporate Business in 2020
Business registration Singapore is a very exciting and (sometimes) confusing process. There are various entity structures such as a sole proprietorship, private limited company and public limited company. For new business owners who may be confused by these terms, don’t worry as we will be diving into a few of these definitions below.
When setting up a local company in Singapore, new business owners have to be wary of the many Singapore laws and regulations, such as laws preventing certain phrases such as “bank” from being used in a company name. With WLP Group, one of Singapore’s top company incorporation services provider, we will guide you through this process and help you to avoid commonly made mistakes.
Because of many years of experience of working together with new business owners to set up and incorporate new companies, we can help to expedite the new company set up process! Contact us for a free Singapore company registration consultation.
Types of Business Entities | New Company Set Up in Singapore
How to register a company in Singapore? First and foremost, you will have to be familiar with the different corporate entity types and decide whether you would like to register and incorporate your new company as a sole proprietorship, or as a private limited company.
- A sole-proprietorship is a new company set up entity structure, owned by an individual or corporate entity. The sole-proprietor has full control in the operation of the business.
- The sole-proprietor is personally held accountable for all debts and liabilities that have been incurred during the course and operations of the business.
- Profits of the sole proprietorship are treated as personal income/ corporate income of the individual / corporate entity who owns the sole-proprietorship, hence the profits are taxable to a tax rate as that of personal / corporate income.
- Sole-proprietorships are not required to audit their accounts (unless special circumstances) or file annual returns with ACRA.
- Registration of Singapore sole-proprietorship has to be renewed annually, and WLP Group, a new company set up provider, can help you with your annual renewal!
- A partnership is a new company set up entity structure, formed by minimum of two, and a maximum of twenty partners. Once the partnership exceeds more than twenty partners, the partnership must be registered as a company under the Companies Act, Cap. 50.
- The partners who join and set up the new company are personally held accountable for all debts and liabilities that have been incurred (i.e. do not have limited liability) during the course and operations of the business.
- Profits of the partnerships are treated as personal income/ corporate income of the individual/ corporate entity who is part of the partnership, hence the profits are taxable to a tax rate as that of personal / corporate income.
- Partnership is not required to audit their accounts (unless special circumstances) or file annual returns with ACRA.
- Registration of Singapore partnership has to be renewed annually. This can be done through a new company set up service provider such as WLP Group.
General Requirement – New Company Set Up Singapore
- Any new Singapore registered company has to be set up by a person who is at least 18 years of age. This person is eligible to incorporate and set up a new Singapore company, as either a sole proprietorship or a partnership.
- A Singapore address is required during the new company set up applications as the business address for the sole proprietorship. HDB / URA address will have to seek written approval from HDB under the Singapore Home Office Scheme for usage of residential premises as a business address.
- All Singapore citizens or permanent residents (PRs) sole-proprietor/ partner registering Sole Proprietorship/ Partnership must check and ensure that their Singapore CPF Medisave accounts contain sufficient funds and no outstanding amount before starting with the process of company registration or new company set up in Singapore.
Additional services – HR support
After setting up your company, you may be employing both foreigners and Singaporeans which have different payroll guidelines that need to be followed, such as monthly CPF Statutory contribution for singaporeans. Many new companies are unfamiliar to the complex regulations, hence opt to engage in payroll outsourcing in Singapore. Such payroll services singapore can not only process and maintain records of employee payrolls and claim submissions, but also digitalize your HR files such as time attendance and leave management. For more information on payroll outsourcing in singapore, visit our site or contact us at +65 6493 2970 for professional support.