Register Private Limited Company Singapore – Incorporate Company in Singapore
Register private limited company singapore
Setting up a local company and incorporating a Private Limited corporation in Singapore is a one of the most popular entity type used in many businesses. They can be easily identified by its suffix (E.g. Pte. Ltd., Private Limited, Private Ltd etc), that is part of their business name. Being aware of the different entity types during the process to incorporate company in Singapore is only the first step.
During the process to incorporate company and register private limited company Singapore, there are a few things to take note of. Before going through the process to start up pte ltd in Singapore (a private limited company), unlike a public company, can’t sell its shares or raise capital publicly. Despite this, there are many advantages such as limited liability to the owner to register private limited company Singapore.
Therefore, the most common entity adopted by Singapore SMEs and entrepreneurs during the process to incorporate a company in Singapore are private limited companies. To find out more about the process to incorporate a company in Singapore, contact us for a free Singapore company registration consultation.
What is a Singapore Private Limited Company?
- A Singapore private limited company is an independent legal entity, separate from the directors/ shareholders – it can sue and be sued in its own name. However, the company’s officers are not personally liable for the company’s debts.
- By registering a private limited company in Singapore, your new Singapore pte ltd company can purchase and own property.
- According to Singapore’s laws and regulations, a private limited company must have between 1 and 50 shareholders during the process to incorporate company in Singapore.
- After the incorporate company in Singapore process, the private limited company in Singapore is eligible for local tax exemptions and incentives regardless of the nationality of the directors or shareholders.
Advantages of Registering a Private Limited Company in Singapore!
- Status alone, registering a private limited company in Singapore displays a higher public perception. Therefore, by going through the process of start up pte ltd in Singapore, you are giving your newly incorporated company a higher chances of investment / loan from a bank.
- Singapore private limited companies set up by local entrepreneurs enjoy special corporate tax exemption and schemes, that are only provided for local citizens and PRs that register private limited company Singapore.
- When setting up and registering a private limited company in Singapore, one of the primary concerns is limited liability. Through our register private limited company Singapore services, incorporating a private limited company is easy and provides the directors protection of personal assets from the uncertainty of the business operations and economic events.
- In the unlikely case of death or serious injury, registering a private limited company in Singapore provides the option of continuing business activities by a newly selected directed, appointed by the shareholders.
Disadvantages of Registering a Private Limited Company in Singapore
- A Singapore private limited company that has finished the process to incorporate company in Singapore has to follow strict rules and regulations stipulated in the Singapore Companies Act. Violation of rules and regulation when going through the process of start up pte ltd in Singapore will result in penalties and severe consequences.
- All owners who choose to incorporate and register a private limited company in Singapore will have to oblige with additional administrative work according to the Companies Act. This includes filing of Annual General Meeting, Annual Returns and Financial Reporting when going through the process of start up pte ltd in Singapore.
- Due to obliging to the requirements under Singapore Companies Act, the newly incorporated private limited company would have to incur higher operation costs.
- During the process to register private limited company Singapore, the registration and setting-up cost with a Singapore company registration services such as WLP Group will be higher.
What to Prepare Before Registering a Singapore Private Limited Company
- Business Name:
In Singapore, prior to finding a company incorporation services provider such as WLP Group, you should have an idea of a business name. To register private limited company Singapore, the business name has to be approved by ACRA (Accounting and Corporate Regulatory Authority) before the Company can be registered. The requirements of the name are that:
- It is not identical or similar to another existing Business Entity’s Name
- It must not be vulgar, obscene or offensive
- It must not be banned by order of the Minister for Finance
Should the name does not meet any of the requirements stated above; ACRA will reject the proposed business name during the process to incorporate company in Singapore.
- Director/ Shareholder’s Details – Singaporean/ Singapore Permanent Resident
For Singaporeans or Singapore Permanent Residents registering as Director/ Shareholder, Singpass is required for the registration. The Individual must not be an undischarged bankruptcy and also not previously disqualified as a Director by ACRA. For more information, contact an experienced company registration services consultant.
- Director/ Shareholder’s Details – Foreigners:
For foreigners, regardless of their residency, all foreigners are required to appoint at least one local Director in order to register for a Company in Singapore. The same applies for Foreign Entities. It is important to note that the Director to be appointed must be an resident in Singapore which meant that he/she has to be a Singapore citizen or a PR (permanent resident) of Singapore, or a person who holds a Singapore Employment Pass, EntrePass or a Dependants’ Pass. Foreigners are required to produce also a proof of residency in their home country. For more information about company registration services for foreigners, contact an experienced consultant.
- Shareholder’s Details – Corporate Entity:
Corporate Entities looking to register private limited company Singapore as a shareholder must provide the business profile during the process to incorporate company in Singapore.
All Companies are required to appoint a secretary within 6 months of company incorporation Singapore.
- Registered Address:
All business entities, including Singapore private limited companies, are required to have a registered business address. It must be a physical address in Singapore and do note that a P.O. Box address is not allowed to be used as the registered business address during the process to incorporate company in Singapore.
Read More: Using HDB/ Private Residential Property as Registered Business Address
- Singapore Standard Industrial Classification (SSIC Code):
The Singapore Standard Industrial Classification (SSIC) is the national standard taken by Singapore for classification of economic activities undertaken by Singapore Registered Business Entities. In brief, the SSIC code describes the nature of your business activities. A Singapore Registered Entity that have just finished the process of register private limited company Singapore, must have at least one SSIC code, and a maximum of 2 SSIC codes that best match the nature of their business. Furthermore, this must be mentioned during the process to incorporate company in Singapore.
Tools: SSIC Code Search (ACRA)
- Paid Up Capital / Number of Issued Shares
To register private limited company Singapore, the company is required to state the amount of paid up capital and number of issued shares during the process to incorporate company in Singapore. This information will be reflected in the Business Profile. For more information contact a consultant experienced in company registration services in Singapore.