Company incorporation for Singaporeans in compliance with the nation’s business rules is crucial. By doing this, you fortify your brand identity and establish your reputation as a reliable company with which partners and customers can do business.
Requirements of Company incorporation for Singaporeans
Business owners must ensure they have complied with the minimal requirements for company incorporation before forming a Singaporean firm. For both domestic and foreign business owners, incorporating a company in Singapore requires completing an online procedure. They must also choose an appropriate corporate structure as their initial action.
Some key requirements of Company incorporation for Singaporeans include:
Company Name
Business owners must obtain ACRA (Accounting and Corporate Regulatory Authority) clearance before naming their company. They can use the BizFile+ electronic platform operated by ACRA to file a name application.
Choose a name for your company and use BizFile+ to see if it has already been registered. A business name that has already been registered by an existing entity cannot be registered. If the name you want is already registered by another business, think about other possibilities or change the name somewhat.
As long as the name is original, not offensive, does not violate any trademarks or copyrights, and has not been held by any person or organization, clearance is obtained quickly. You must use BizFile+ to apply for your business name once you’ve decided on it. There is a 15 SGD application process fee. You then need to wait for its clearance.
The name will be kept exclusively for you for 120 days after it is approved. During this time, you must finish the procedure of registering your firm or putting it up. The name will no longer be preserved just for you, and others may be allowed to use it if you don’t do this within 120 days.
Business Activity Specification
The Singapore Standard Industrial Classification is referred to as SSIC. The SSIC code is essential for figuring out whether the operations of your firm need to be licensed and regulated. It also affects your business’s eligibility for government assistance, tax breaks, and grants. The Accounting and Corporate Regulatory Authority (ACRA) may use it to forward your application to the appropriate licensing department for approval if your business activity requires a license. The SSIC code is used by the Inland Revenue Authority of Singapore (IRAS) to determine if a business qualifies for tax advantages.
Director Appointment
In order to register their firm, business owners must appoint at least one resident director. The director may be a citizen of Singapore, a permanent resident, or a person holding a current work permit. Additional directors, whether domestic or international, may be appointed if they are at least eighteen years old, in good standing, and have not engaged in any misconduct. In order to suit their demands, the foreign business may also designate a member of its Singaporean workforce as a company director.
Company Secretary
Under the Singapore Companies Act, all registered companies in Singapore are required to designate an eligible corporate secretary within six months of their creation. If a corporation has just one director or shareholder, its owners must designate a different natural person to serve as secretary.
Shareholders
For private limiteds In Singapore, corporations are required to have a minimum of one shareholder and a maximum of fifty. Shareholders may be individuals or other types of legal entities. They may come from any country, and foreigners may own all of the shares. Later, shares may be issued or transferred.
Registered Office Address
The business must have a physical address in Singapore in order to register with the Accounting and Corporate Regulatory Authority (ACRA). A P.O. Box should not be the address.
Paid-up Capital
Business owners in Singapore must have ready a minimum paid-up capital, or share capital, of SGD 1, meaning they will require very little initial investment. After registering, they are free to raise funds whenever they choose. They only need to open a corporate bank account and put money into it before notifying the company registrar of their intention to increase share capital.
Corporate Bank Account
Opening a bank account for your business is a smart move. Having one makes it easier to track your business expenses for tax purposes and to keep business and personal funds apart. For banks to sign account documentation, senior management and directors must typically be present in Singapore. On a case-by-case basis, certain banks may also require additional papers, such as completed corporate account opening forms and certified true copies of resolutions or the certificate of incorporation. However, some banks may allow you to sign in front of a notary public or at their branches overseas.
Which Business Structure Is Best for Company Incorporation for Singaporeans?
Choose the structure that works best for company incorporation for Singaporeans, whether you are running the firm alone or with partners. You want to think about the advantages and factors for each type of business structure, including:
Sole Proprietorship
There is only one business owner and it has the most basic structure. A lone entrepreneur assumes full responsibility for all obligations has, total control over the operations of his business, and is responsible for legal actions taken against the company.
Partnership
It is comparable to a sole proprietorship, with the exception that a maximum of 20 persons can form it.
Limited Partnership (LP)
It is a partnership between a minimum of two people: one general partner who bears full responsibility for the company’s decisions, commitments, and debts and one limited partner who is only held accountable for the agreed-upon contribution and is released from all further liabilities. It shares no legal personality apart from the partners.
Limited Liability Partnership (LLP)
This type of business structure involves at least two partners incorporating an entity apart from themselves. A partner is not individually responsible for the deeds of the other partners.
Local Company
It is a business that can sue or be sued, has perpetual succession, and has the right to possess property.
Information & Documents Required for Company Incorporation for Singaporeans
Company incorporation for Singaporeans involves submitting certain documents, including your company’s constitution, information about directors and the company secretary, the date of incorporation, your business address, and specifics about shares, share capital, and shareholders.
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