Although, Singapore Company Registration is an Easy Process, You Should Know Few Basic Facts Related to It
From starting as the centre point of India and China for trading across seas, to becoming a major hub of entrepot trade, in very less time Singapore has emerged as one of the major port cities in the world. Today, we identify Singapore as one of the most prosperous and developed economies in the world. Entrepreneurs from all over the world are rushing towards Singapore for incorporating their dream company.
Singapore is known for having the freest economy; however, it also has state of the art infrastructure, excellent transportation, and favourable tax laws, which are enough to attract independent entrepreneurs and foreign corporations to open company in Singapore. Although, it is very easy to register a business in Singapore, every entrepreneur, and the foreign business entity should know few things about Singapore business incorporation.
General Characteristic of Singapore Company Incorporation
* By offering different types of business entity options for company incorporation, Singapore corporate world has brought about enough flexibility. Nevertheless, the two most common business entities preferred by many entrepreneurs are Private Limited companies and Public Limited Companies.
* The Singapore Companies Act restricts the numbers of shareholders to fifty or less in a private limited company but does not impose any restrictions on the transfer of shares.
* At the same time, the public limited company can have more than fifty shareholders and the Companies Act authorizes it to raise capital by offering shares and debentures.
* Local or foreign individuals, as well as local or foreign business entities, are all eligible to setup a private limited company in Singapore.
* The Singaporean corporate environment is flexible enough to allow non-resident Singaporeans to incorporate a company in Singapore; that too with 100% foreign ownership, irrespective of whether it is an individual or a foreign business corporation.
* The Pte Ltd Company in Singapore has a separate legal identity; hence, the shareholders are not liable for any losses or debts incurred by the company in the course of the business. The liability of shareholders is limited to the amount if unpaid any on the shared issued to them.
* You do not require minimum paid-up capital to incorporate company in Singapore; instead, you can establish your business in Singapore with only one Singaporean Dollar.
The Systematic Process of Singapore Company Registration
NOTE: It is mandatory by law for foreign business entities or foreign individuals, to hire local firms offering Singapore Incorporation Services.
A foreigner incorporating a Singapore company also wants to relocate and be the Director of his own company must have to apply for an EntrePass. The Ministry of Manpower (MOM) started the specialized Entrepreneur
It would be better if the foreign individual registers his/her company with ACRA only after the approval of his/her EntrePass. Besides, a foreign entrepreneur owning a Singapore registered company for not more than six months is also eligible to apply for the EntrePass.
Getting your proposed business name approved is the first but most important step towards Singapore company registration. You are expected to follow and comply with almost all the guidelines put forth by ACRA to get your company name approved as quickly as possible.
Start preparing company incorporation documents, immediately after company name approval
* Preparing a document setting out the purpose and bylaws of the incorporated company called as Memorandum & Articles of Association (M&AA).
* Form 6, which is a Statutory Declaration of Compliance
* Form 7, which is the Certificate of Identity
* Form 44, which is a Notice of Situation of Registered Office and Office Hours at the time of incorporation
* Form 45, which is Consent to act as Director and Statement establishing the Non-Disqualification of appointed individual to act as Director
PLEASE NOTE: Having a registered office address in Singapore is one of the key requirements to incorporate a company in Singapore. More often, the firm offering Singapore incorporation services will make an arrangement of the registered Singapore address for nominal fees until the company manages its own registered address. Apart from that, if available an entrepreneur taking advantage of the Home Office Scheme can utilize a residential property or flat as the registered address in Singapore.
Few Important Points Related To Singapore Company Incorporation
Companies incorporated by a single person or a single business are permissible and is allowed to have at least one director. The only complying requirement is having at least one ordinarily Singapore resident who happens to be above 18 years of age with a clean record must act as the Director of the company.
Foreign companies registering their business in Singapore must appoint at least two agents to act on their behalf. Ensure that the appointed agents are permanent Singapore residents, Singapore citizens or persons holding Singapore Employment Pass.
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