How to Setup a Company in Singapore
The numbers of foreign entrepreneurs who are relocating their businesses to Singapore are on the rise, which is due to the hassle-free nature of doing business, especially when it comes to incorporating company in Singapore. Before you get started with setting up a Company in Singapore, there are pre-incorporation and post-incorporation requirements for statutory compliance that you should adhere to.
It’s not easy for a foreign company to get well acquainted with compliance requirements, and that’s why you should consider engaging a corporate service provider Singapore for the setting up of a company in Singapore. The first step is to consider the different types of entities available for company registration then opt for what suits you best. When registering a private limited company, it’s important to note that it’s limited by shares and also has a separate legal entity from the shareholders.
Before you consider incorporation of a company in Singapore, it’s important to note that the shareholders of a private limited company are not in any way liable to the losses and debts that are beyond the share capital amount. All of the companies within Singapore are required by law to be registered with the Accounting and Corporate Regulatory Authority (ACRA) and should also abide by the Companies Act.
Here are some of the steps to follow when considering registration of the company in Singapore;
Minimum setup requirements
The first step is to ensure that there is at least one shareholder, one resident director who should be a local of Singapore, one company secretary, at least S $ of paid-up share capital and a registered office in Singapore.
Once you have the basic minimum requirements in place, the next thing to consider is to ensure that you have in place a company name that should be approved by ACRA before the company can be incorporated. The name that you propose for registration can be rejected if it’s identical to another name. The preferred name is undesirable and if the name is similar to the established names or trademarks.
An individual or a corporate entity can either become a shareholder of the incorporated company either by subscribing to the shares within the company or purchasing the company shares. A director and shareholder considered during incorporation of company can either be the same person or different people. According to the Singapore Companies Act, a minimum of up to 50 shareholders are allowed for a private limited company in Singapore. It’s also important to note that the shareholder’s details appear on public records.
During registration of the company in Singapore it’s required that the company have in place at least one director who should ordinarily be a resident of Singapore. In case the shareholder is a foreigner, they should consider having in place a nominee director who is a permanent resident of Singapore or one who holds an Employment Pass/EntrePass alongside a residential address in Singapore.
It’s important to also note that there is no limit to the number of local or foreign directors that a private limited company in Singapore should have. There are several other things to be considered during the company setup process, and that’s why working with corporate service provider Singapore can be of help.
Originally published by onestop-ca.com