In a recent report by the World Economic Forum, Singapore emerged as the global leader in economic competitiveness, surpassing even developed Western countries, along with a favourable rank on the United Nations' Human Development Index (HDI) and a spot among the top ten countries worldwide for nominal per capita GDP, as estimated by the World Bank.
Singapore offers numerous advantages for companies looking to do business, for instance Singapore's well-developed infrastructure, its world-class seaports, airports and digital connectivity, all enhance trade and business connectivity globally.
Who is the Regulatory Authority for Company Registration in Singapore?
- The Accountability and Corporate Regulatory Authority (ACRA) serves as the main regulatory authority for company registration in Singapore.
- ACRA is responsible for overseeing and regulating business enterprises, corporate service providers and public accounts in the country.
- It plays a crucial role in maintaining the integrity and transparency of the corporate sector in the country.
- ACRA ensures compliance with the relevant laws, regulations and requirements related to company registration and operations.
- As the regulatory body, ACRA provides the necessary guidelines, processes and resources for smooth and efficient company registration procedures in Singapore.
- It also maintains the BisFile+ online portal, where applicants can submit their company registration applications and access relevant services and information.
- ACRA's objective is to enable a conducive business environment and promote trust and confidence in Singapore's corporate landscape through effective regulation and enforcement.
What are the Advantages of Registering your Company in Singapore?
The following benefits accrue on registering a company in Singapore for the purpose of business:
Strong economy:
- Well-developed free market economy based on trade, finance and manufacturing.
- Reasonable growth and development rate.
- Effective utilisation of resources resulting in a strong and stable economy.
Attractive taxation system:
- No tax on capital gains or dividends, making it favourable for entrepreneurs.
- Corporate tax rates ranging from 0% to 17%, relatively low compared to other developed countries.
- Various tax incentives and exemptions available for specific industries and activities.
Double Taxation Avoidance:
- Double taxation avoidance agreements with over 50 countries, ensuring no double taxation on transactions.
- Unilateral tax credits provided for countries without specific agreements.
100% Foreign Ownership:
- Foreigners can own 100% of the company's stock incorporated in Singapore.
- No restrictions on the amount of capital brought in from the home country.
Seamless Incorporation and Operation:
- Simple and straightforward company registration process.
- Minimal paperwork and administrative requirements.
- Efficient government services and support for businesses.
Pro-start-up environment:
- Growth and innovation-friendly policies and regulations.
- Various tax incentives, grants and schemes for start-ups.
- Supportive ecosystem for entrepreneurship and access to funding opportunities.
World-class infrastructure:
- Excellent transportation networks, including ports, airports and road systems.
- Modern and reliable telecommunications and internet connectivity.
- High-quality office spaces, research facilities and industrial parks.
- Advanced logistics and supply chain networks.
Strategic location and connectivity:
- Gateway to the Asia-Pacific region, providing access to a vast consumer market.
- Well-connected with global markets through an extensive network of trade agreements.
- Easy accessibility to international markets and business opportunities.
Political stability and favourable business environment:
- Strong political stability and rule of law.
- Efficient legal framework and intellectual property protection.
- Low corruption levels and transparent governance.
Skilled workforce and talent pool:
- Highly educated and multilingual workforce.
- Availability of skilled professionals across various industries.
- Supportive education and training programs to meet industry demands.
Quality of life:
- High standard of living and excellent healthcare facilities.
- Safe and clean environment with a low crime rate.
- Diverse cultural and recreational opportunities for residents and employees.
Access to funding and financial services:
- Access to a wide range of funding options, including venture capital, angel investors and government grants.
- Well-developed financial sector with reputable banks, investment firms and financial services.
Strong government support:
- Proactive government agencies providing assistance and guidance to businesses.
- Continuous efforts to enhance the business ecosystem and attract investments.
What are the Types of Business Structures in Singapore?
There are many types of Business Structures that are usually in business in Singapore, which includes:
Sole Proprietorship:
- Suitable for small-scale businesses with minimal risk.
- Run by an individual without separate legal entity status.
- Owner has personal liability for business debts and liabilities.
Partnerships:
General Partnership:
- Involves two or more partners for profit-generating activities.
- No separate legal entity, unlimited liability for partners.
Limited Partnership:
- Includes at least one general partner with unlimited liability.
- Limited partners have liability limited to their capital contribution.
Limited Liability Partnership (LLP):
- Combines partnership flexibility with limited liability protection.
- Separate legal personality, requires at least two partners.
3.Company:
Exempt Private Company:
- Private limited company with exemptions from certain compliance requirements.
- Maximum of 20 shareholders, excluding corporations.
Private Company Limited by Shares:
- Share capital company, limited liability for shareholders.
- Maximum of 50 shareholders, including corporations.
Public Company Limited by Shares:
- Can raise capital from the public, requires prospectus registration.
- No shareholder limit, liability limited to capital invested.
Public Company Limited by Guarantee:
- Incorporated for non-profit and charitable purposes.
- No share capital, liability extends to the guaranteed amount promised.
Unlimited Private Company:
- Hybrid company with unlimited liability, requires 'Unlimited' in name.
- Liability extends to personal assets, joint and several non-limited liabilities.
Unlimited Exempt Private Company:
- Similar to unlimited private companies, but with unlimited liability for members.
Unlimited Public Company:
- Liability of members is unlimited, requires 'Unlimited' in name.
Subsidiary:
- Extension of a parent company, separate legal identity.
- Managed by a board of directors, can have a different name.
- Taxed as a local entity, minimum share capital of $1.
Branch Office:
- Extension of a parent company, not a separate legal entity.
- Activities taxed as a non-resident entity, perpetual existence.
- Minimum capital of $1, must have a local manager or representative.
Representative Office:
- Represents parent company for market research and liaison purposes.
- Temporary office for administrative tasks, not a separate legal entity.
- Parent company must be in business for at least three years with a turnover above $250,000.
- Minimum capital of $1, chief representative appointed from the parent company.
What are the Documents Required to Register Your Business in Singapore?
To register your company in Singapore, the following documents are necessarily required:
- Company name: Proposed name for your company.
- Brief description of business activities: A summary of the nature and scope of your business activities.
- Shareholders particulars: Details of individuals or entities who will hold shares in the company.
- Directors particulars: Information about the directors of the company, including their names, addresses, nationalities and identification documents.
- Registered address: A local address in Singapore that will serve as the registered address of the company.
- Company secretary particulars: Details of the appointed company secretary, including their name, address and qualifications.
- Memorandum of Association (MOA): A legal document that outlines the company's constitution and objectives.
- Articles of Association (AOA): A document that defines the internal regulations and rules governing the company's operations.
Additional Requirements for Non-Residents (Foreigners):
- Copy of passport: A clear copy of the passport of each foreign shareholder and director.
- Overseas residential address proof: Proof of the residential address of each foreign shareholder and director, such as a utility bill or bank statement.
- Know Your Customer (KYC) details: Other KYC details may be required, such as a bank reference letter, business profile or professional background information.
Basic Checklist for Company Registration in Singapore
The Basic Checklist for Company Registration in Singapore includes the following:
Choosing the name for the company:
- Submit the desired company name to ACRA's online portal, BizFile, for availability check and reservation.
- Select and specify the appropriate SSIC Code based on the business activities.
Deciding the type and structure of the company:
- Determine the most suitable entity structure from options such as Exempt Private Company, Private Company Limited by shares, Public Company Limited by shares, etc.
Deciding the Financial Year End (FYE) for the company:
- Choose the FYE, which determines corporate filings and tax obligations.
- Preferred FYE choices include 31st March, 30th June, 30th September and 31st December.
Appointment of important personnel for the company:
- Appoint at least one director and a company secretary who are residents of Singapore.
- Consider appointing an auditor, CEO or Managing Director if required.
- Provide the personal particulars of appointed officers, including NRIC, names, nationality, contact information and residential address.
Deciding the share capital for the company:
- Determine the amount of money committed by shareholders as share capital.
- Minimum issued share capital at the time of incorporation is $1.
Deciding the registered official address of the company:
- Choose and submit the registered office address for official communications and record keeping.
- Maintain the office open for at least three hours during business days.
Copy of Constitution of the company:
- Prepare and submit a copy of the company's constitution detailing rules, regulations, rights and responsibilities.
- Include information on the registered office address, activities, liabilities and share capital.
Submission of the application for incorporation:
- Submit the application online through the BizFile+ portal.
- Receive an email notification upon approval and endorse the application within 50 days.
- Pay the fee of $15 for name reservation and $300 for company incorporation.]
What is the Process to Register a Company in Singapore?
The step-by-step process of incorporating a company in Singapore is given below, which includes:
Apply for Company Name
- Choose a unique name that reflects your business.
- Ensure the name does not violate trademark registration rights.
- Avoid offensive or rude names.
- Verify that the name is not already taken or reserved by another party.
Decide the Right Business Structure
- Select the appropriate corporate structure considering tax and legal obligations.
Get Ready Documents for Singapore Company Registration
- Prepare the company's constitution or Articles of Association.
- Obtain written authorisation from each director to serve on the board.
- Gather details of officers and shareholders, including their names and addresses.
KYC Process to Register Company in Singapore
- Complete the Know Your Customer (KYC) due diligence process.
- Provide identity and address verification documents.
- Submit credentials of shareholders and other executives.
What are the Post Incorporation Requirements for a Company in Singapore?
The Post Incorporation Requirements for a Company in Singapore are as mentioned below:
Setting up a Corppass Account:
- Visit the Corppass website and create a Corppass account to transact with government agencies.
- Grant necessary access to selected employees for transacting with ACRA on behalf of the company.
Creation of Business Profile:
- ACRA provides a free Business profile to every newly incorporated company.
- Download and utilise the Business profile for background checks, building credibility with potential customers, business partners and suppliers.
Option of Registration of Alternate Business Address:
- Company officers can choose to register an alternate residential address to maintain privacy.
- An additional fee of $40 is required.
- The alternate address should be within the same jurisdiction as the residential address.
Maintenance of Company Registers:
Ensure the following company registers are kept up-to-date:
- Members/Shareholders
- Directors
- Secretaries
- Auditors
- CEOs
- Controllers/Beneficial owners
- ACRA maintains these registers in electronic format.
- Update the registers in BizFile within 14 days for any changes.
Reporting Changes to ACRA:
Directors are responsible for informing ACRA about the following changes:
- Company's address and operating hours
- Appointment of new directors, CEO, company secretary and auditor
- Changes in company activities
- Discontinuation of services by directors, company secretary, auditor or CEO
- Changes in information of directors, CEO, company secretary, auditor and shareholders
- Allotment or transfer of shares among shareholders.
What are the Services Offered by Startupfino for Company Incorporation in Singapore?
Singapore, a shining example of economic stability and prosperity, attracts businesses with its impressive economic indicators. It consistently secures a prominent position among nations with its noteworthy nominal per capita GDP, as highlighted by IMF estimates. Authentic and popular reports like the World Economic Forum's Global Competitiveness Report, consistently hail Singapore as the world leader in economic competitiveness, always ranking the country among the top 5 economies of the world in the index.
What sets Singapore apart is its strategic location, promoting connectivity and accessibility to regional markets. With a pro-business environment, high political and economic stability, a highly skilled workforce, strong intellectual property protection and exceptional economic indicators, Singapore serves as an ideal platform for companies to flourish and achieve definite success in the global marketplace.
Startupfino is a company that specialises in offering complete services for Company Incorporation in Singapore.
We can aid with everything from providing advice in the beginning phase to ensuring that you meet all the necessary requirements and also keeping your company in good legal standing.
Our services include the below mentioned:
- Company name search and reservation to ensure availability and compliance for incorporation in Singapore.
- Preparation and filing of incorporation documents, including company constitution and director/shareholder particulars.
- Assistance with obtaining necessary licences and permits for specific industries or activities.
- Provision of registered office address and company secretary services to meet compliance requirements.
- Guidance on tax planning and application for relevant tax incentives and exemptions for newly incorporated companies.
- Advisory services on corporate structure and shareholding arrangements to optimise business operations.
- Compliance support, including annual filing, accounting and corporate secretarial services for post-incorporation requirements.
By availing our services, entrepreneurs can avoid the negative outcomes of non-followance of rules and compliances. StartupFino works hard to provide services that are prompt and effective, so you can manage your business without any issues and without facing penalties or problems.
