Company Registration in Singapore
No limit for registered capital
No requirement for local partnership
Complete foreign ownership allowed
Joint venture registration is allowed
Singapore market entry strategy
For global business development, Singapore is the ideal country to set up the company. It’s the world’s easiest place to do business because of its strong trade and investment policies. Company registration brings many unmatched benefits for the owners and members of the company.
Given below are easy steps to be followed for company registration in Singapore:
- Company Name. Receive the approval for new company name before registration.
- Directors. All the directors of the company should be 18 years of age and don’t possess any criminal records. It is compulsory to have at least one resident director with a valid employment/dependent pass.
- Shareholders. For Private Limited Company, the minimum number of a shareholder required is one and maximum is 50. Shareholders can be individuals, entities, locals or foreigners. Even after incorporation, one can issue or transfer shares to shareholders. The maximum number of shareholders is 20 in the Exempt Private Company and no corporation holds (directly/indirectly) any beneficial interest in the EPC’s shares.
- Company Secretary. The company has six months to appoint a qualified company secretary once the incorporation completed. A sole director or shareholder can’t also be the company secretary, who must be a natural person living in Singapore.
- Paid-up Capital. The company must have at least S$1 in paid-up capital, the amount can be increased anytime after incorporation. Singapore companies do not use authorized capital. It can be Ordinary shares, preference shares or other shares.
- Registered Address. It is mandatory to register a local business address. Small-scale business can even register their resident address.
- Taxation. Singapore’s tax exemptions and incentives:
- Pay no more than 8.5% tax on first S$300,000 of annual profits and 17% thereafter.
- No dividend or capital gain taxes.
- Singapore companies enjoy some of the world’s best tax benefits and business reputations.
Point to remember by foreigners before the company registration in Singapore
Required Information and Documents
- Company Name
- Brief Description of the Business Activities
- Particulars of the Shareholders
- Particulars of the Directors
- Registered Address
- Particulars of the Company Secretary
- Memorandum and Articles of Association (MAA). Provided by the Singapore Company Registrar.
|Non-Residents (Foreigners)||Copy of passport, overseas residential address proof, and Know-Your-Client (KYC) information including bank reference letter, personal and business profile, etc.|
|Singapore Residents||Copy of Singapore identity card|
|Corporate Entity Shareholder||Copy of registration documents including Certificate of Incorporation and Memorandum & Articles of Association.|
Mandatory to officially endorsed translated versions of important documents that are not in English.
Registration Procedure and Timeline
The Singapore Registrar of Companies is fully computerized, keeping the red tape minimum. The application can be filled in an hour and the Registrar normally incorporates it the same day if all the required information and documents are well furnished.
Step 1: Reserve Company Name
It is mandatory that the Singapore Government should approve a company name before register it. The Company Registrar will oversee the process.
The Company Registrar will notify the decision instantly.
Certain words like law, media, bank and finance will slow down the process because another Government Authority will intervene which delays the process by certain days or weeks.
To accelerate the process a name should be picked with the following qualities :
The owner can sit on the name for 60 days and for another 60 days by filing an extension.
Step 2: Registering the Company
After the company name is approved, the Registrar of the Companies will process the incorporation application and documents within a few hours.
People from certain countries might get their application delayed but that’s rare. This basically means that the Government Authorities need to perform a few additional interrogations.
$300 should be paid to the Registrar of Companies for the procedure
Post Registration Formalities
Certificate of Incorporation
An email will be sent by the Company Registrar after the completion of the process. The email confirms the incorporation of the company and its Registration Number. This is an official certificate. Singapore no longer uses paper certificate but it can be obtained from the Company Registrar by paying a fee of S$50. Usually, the processing time is from 3 to 5 days.
Company Business Profile
After the process of registration, Company Registrar will create the company business profile. The downloadable PDF file contains the following information:
- Company name and registration number
- Previous names for the company, if any
- Incorporation date
- Principal activities
- Paid-up capital
- Registered address
- Shareholders details
- Directors details
- Company Secretary details
After this email, the owner can proceed with all the legal and contractual tasks that are needed to be performed in Singapore.
- Opening a Corporate Bank Account.
- Applying for Business Licenses
Certain businesses in Singapore require a special license to be obtained after its incorporation to run the business in the country. ( Singapore Business Licenses )
– educational institutes
– travel agencies
– financial services
– import/export goods
– employment agency
– employment agency
- Goods and Services Tax ( GST Registration )
This registration is not required if the annual turnover of the company is less than S$1 million. If the turnover exceeds S$1 million then GST registration is important. After getting the registration the company can charge additional 7% to the customers for the goods and services they are providing. This must be turned over to the Singapore authorities.
- Annual Filing Requirements to be done according to Singapore Companies Act.
- Annual Income Tax Requirements is mandatory for Singapore Companies.
Further, company registration in Singapore is easy. For any guidance at any step, one can freely contact Impanix.