Singapore is one of Southeast Asia’s most stable economic hubs and the most business-friendly country. This fact, combined with the unparalleled transparency of government policy and a very friendly tax system, makes Singapore one of the most attractive places for successful entrepreneurs from all over the globe to start a business. This article demonstrates all the integral steps on the path from a mere business idea to a fully functioning business in the dynamic and beautiful city-state of Singapore.
Choosing the Right Business Structure
The first critical decision after deciding to establish your business in Singapore would be about your business structure. There are generally three types:
Sole Proprietorship
This form works best for individual entrepreneurs with low-risk businesses who are willing to assume personal liability for their business operations. It is the simplest structure and is also known as the ‘single-member LLC.’
Limited Liability Company (Pte. Ltd.)
If you’re like most of Singapore’s small—to medium-sized enterprises, this is your choice. It affords shareholders limited liability, tax advantages, and a professional corporate image.
Limited Liability Partnership (LLP)
Designed for professionals intending to provide services in partnership, with the benefits of limited personal liability. An LLP is a hybrid of the features of a partnership and a company.
Every structure addresses a different need and has implications for the legal and financial aspects of doing business. It is important to know the different structures and pick one that suits you—it will affect your liability, tax load, and ability to attract investors.
Pre-Registration Essentials
Before officially registering your business, several preliminary steps must be addressed:
Select a Unique Company Name
Your business name must be unique and memorable and not already in use or reserved. The Accounting and Corporate Regulatory Authority (ACRA) of Singapore will reject undesirable names identical to existing businesses or infringe on trademarks.
Appoint Directors & Shareholders
At least one resident director must be a Singapore citizen, permanent resident, or holder of an EntrePass. There are no restrictions on the nationality of shareholders, and a company can have anywhere from 1 to 50 shareholders, who may include individuals or corporate entities.
Registered Office Address
Every company in Singapore must have a registered address within the country. This address is used for official communication and must be operational during standard working hours.
The Incorporation Process: A Step-by-Step Guide
Incorporating a business is a simple process, especially if you use an efficient and automated system that the Accounting and Corporate Regulatory Authority (ACRA) offers these days. Here are the steps:
Approval of the Company Name
This first step is done via ACRA’s online submission. Prospective business owners must submit their desired company name for approval, ensuring that it is unique and not similar to any existing business name.
Registration Documents
Following on from the approval of the company name, one needs to file the key documents such as the company constitution (previously called the articles of association), the particulars of the director(s), the shareholders, initiator, and the company secretary, all of which are critical to the structure and day-to-day administration of the company.
Registration Fee
There should be a minimal payment to ACRA as a part of the registrar’s fees involved in the registration. The payment should only be made to a successful application. This is done to complete the application. This can be accessed through their online portal.
Receive Your Business Registration Certificate
After the documents are submitted payment has been made, and the documents are in order, ACRA will usually proceed with the registration. Within minutes after submission, you will receive an official email notification with the company registration number and a provisional registration certificate. This provisional certificate will be in effect until the physical copy is picked up.
The incorporation process can be quick and easy with professional and licensed company incorporation services in Singapore. They walk the new business owner through the process step-by-step, handle all the formalities, and leave a professional and polished impression of the business.
Post-Incorporation Requirements
After your company is incorporated, there are several ongoing requirements to comply with:
Open a Corporate Bank Account
You must open a corporate account in one of Singapore’s reputable banks. This process usually requires the company principals’ physical presence and the submission of the necessary documents.
Meet Compliance Requirements
Singapore companies must comply with various regulatory and fiscal obligations, including tax filing, annual returns, and auditing requirements. Newly incorporated companies must also register for Goods and Services Tax (GST) if their annual turnover is expected to exceed SGD 1 million.
Contact SG Biz Works for Singapore Company Formation Services
Incorporating a business in Singapore is a worthwhile endeavour due to its stable economic environment and investor-friendly policies. By understanding the detailed steps involved—from choosing the right business structure to meeting post-incorporation compliance—you can ensure a seamless and efficient setup of your new business in Singapore. With the right preparation and guidance from reliable Singapore company formation services, your business can thrive in one of the world’s most competitive economies.
Are you ready to take the first step towards incorporating your business in Singapore? SG Biz Works is here to assist you with our comprehensive Singapore company formation services. Contact us today to learn how we can help you set up and succeed in our dynamic business landscape.
