Formation of Company in Singapore: Things to Know
Before you get started with the establishment incorporation of a company in Singapore, you should decide early enough whether you intend to do it all by yourself or hire an expert.
If you are not a Singaporean citizen, then you are required by law to hire a resident of Singapore to help with the process of registration. Considering the legal aspects of registering a company and issues that pertain to compliance, you should settle for a reputable company that offers to account and auditing professional services such as onestop-ca.com.
Getting the help of a professional accounting firm when considering the incorporation of company is highly recommended as the firm can significantly help with the pre-registration process. A professional firm can help with the pre-registration process, registration, and post-incorporation process. Because registration of a company requires ongoing compliance, therefore engaging a professional firm is highly recommended, as that can help with ensuring that every process is done correctly.
Before you get started in the process of establishing a company, ensure that you identify a list of possible names for the proposed company. The business names that you choose for your business should not resemble an existing business name in Singapore. It should be unique and also something that people can easily relate to in regards to what your business is all about. The name that you settle for should be appropriate and not undesirable as per the government’s view. Some names should not be used during the registration of a company, and knowledge of such can help.
If a complaint is lodged regarding the company name after 12 months of incorporation of company, the registrar can order for change of the company name that is if the name chosen resembles another name. Ensure that you carefully select a name and a relevant domain name that goes with it. During the registration of the company, you can list two of the key business activities as required by the Singapore Standard Classification Code. If in case a company has more than two key business activities, the two activities that generate most of the revenue should be chosen.
During the incorporation of a company, you should also take time and decide on the shareholders and the share capital. In most cases, many entrepreneurs set up companies that have a nominal paid-up capital of $1 – $100, and that can subsequently increase with time. It would be best if you decided on the shareholders that you intend to have initially and their stake within the company. Take time and get insight into the different classes of shares, or you can opt for the ordinary shares only. You should also be clear about those who will act as the company director or directors.
Remember that when it comes to company formation in Singapore, you can settle for a minimum of one nominee director. However, it’s important to note that there is no maximum requirement with regards to the number of nominee directors that a company can have. If, in case of a foreigner or a non-Singaporean citizen who is in the process of incorporating a company in Singapore, then one of the directors has to be a local resident of Singapore.