The Most Comprehensive Guide to Incorporating a Business in Singapore
Everything you need to know about starting your business journey in Singapore
Key Takeaways
Effective Incorporation
Singapore attracts entrepreneurs from around the world with its simplified business incorporation process.
Flexible Structures
A Private Limited Company (PTE LTD) provides ease of investment and legal protection. A variety of other structures are available.
Resident Director Requirement
The appointment of a minimum of one resident director who is a Singaporean national, a permanent resident, or the holder of a work permit is required.
Important Legal Documents
The company's incorporation certificate, bylaws, and director and shareholder identification are among the most important documents.
Compliance and Licencing
In order to maintain good standing after incorporation, designate a company secretary, obtain the required licences, and submit the required yearly reports.
Table of Contents
- Introduction
- How to incorporate a company in Singapore
- How to choose an incorporation structure
- Steps after incorporating a company in Singapore
- Checklist of legal documents
- Summary
Introduction
Starting a business in Singapore can be an exciting but intimidating experience. Singapore, which is well-known for its strong economy and welcoming business climate, provides a simple company incorporation process that can launch your entrepreneurial career.
Perhaps the first question an entrepreneur in Singapore faces: is how to incorporate their business in Singapore. This extensive guide addresses all the important questions that entrepreneurs have when incorporating a business in Singapore, covering every step, from choosing a distinctive company name and appointing shareholders and directors to managing legal compliance and obtaining required licences.
If you're keen to take advantage of Singapore's thriving market, this guide offers the necessary information and tips to make sure your business is launched successfully.
How to Incorporate a Company in Singapore?
1Select a Suitable Company Name
Select a name that is:
- Unique, not being used by anyone
- Is not already reserved by anyone
- Is not offensive or forbidden
Once you have chosen a company name you have to submit a company name application via Singapore's ACRA (Accounting and Corporate Regulatory Authority) online business registration and filing portal 'Bizfile'.
2Have Shareholders (1-50 shareholders)
A minimum of 1 shareholder and 1 paid-up share capital of S$1 are required for every company. Shareholders may be up to 50. These shareholders may or may not be directors. Both resident and non-resident persons or companies are allowed as shareholders. You may even have 100% non-resident shareholding.
3Appoint a Director
You must appoint a Director for your company. Directors can be Resident or Non-Resident but there must be at least one Resident Director (Resident here means a Singapore Citizen, Permanent Resident, or holders of Singapore work visas). Directors should be at least 18 years old.
Details of the appointment (including details of shares that the directors have acquired or shares that are registered in the directors' name) must be filed at the Accounting and Corporate Regulatory Authority of Singapore (ACRA). The ACRA must consent to the appointment before the individuals can be appointed as directors.
4Get a Registered Address for Your Company
You must have a local Singapore physical address as the registered address of the company. The registered address may be a residential or a commercial address but it cannot be a PO Box address.
Pro-tip:
Utilise Nominee Director Services - If you are a non-resident without a local contact, consider using nominee director services to meet the requirement of having at least one resident director.
Frequently Asked Questions
How to Choose an Incorporation Structure for My Company?
Businesses in Singapore have a variety of company incorporation structures to select from, each suited to their unique requirements. These are the main choices:
Which Structure Is Best Suited for Your Business?
The main advantage of incorporating a Private Limited Company is the legal protection that it provides.
- By separating your personal assets from those of your business through incorporation, you protect your personal assets from debt or legal issues.
- Incorporation as a private limited company (PTE LTD) increases your trustworthiness in the eyes of possible partners, investors, and clients.
- It makes capital investment easier and makes ownership transfers easier.
- Additionally, it offers an organised method for handling all business matters, including intellectual property (IP) management.
Steps after Incorporating a Company in Singapore
Appoint a Company Secretary
Every company incorporated in Singapore must appoint a qualified resident Company Secretary within 6 months of the company's registration. A director or a shareholder cannot be the Company Secretary. A Company Secretary will make sure that your newly incorporated company is compliant with all regulations and legal requirements.
Get a Business Licence
Getting a Business License is mandatory before you can commence your business operations. Depending upon the type of business you are in, a licence must be obtained from a relevant Singapore government agency. Businesses such as financial services, travel companies, restaurants and educational institutions require a licence.
It's a good idea to engage a professional company who can help you get a business licence.
Get a GST Registration
If your anticipated revenue is more than S$1 million, you must register for the Goods and Services Tax (GST) with the Singapore Inland Revenue Authority in order to submit these taxes.
Compliances Required for a Company
Legal compliance, including the filing of yearly tax returns, GST returns, and compliance reports, is the responsibility of the directors.
Pro-tip:
Plan for Future Expansion - When choosing your company structure and initial setup, consider your long-term business goals. Opt for a structure that allows for easy scalability and future investment opportunities.
Checklist of Legal Documents to Incorporate a Company in Singapore
The particular legal documents needed to incorporate a company can change based on the jurisdiction and kind of business structure you're starting. On the other hand, the common documents required for company incorporation are generally included in the following list for startups:
The requirements and paperwork can differ greatly and you may need some professional help with filing these documents, so it's recommended that you engage a company incorporation service in Singapore to help you with these complexities.
Pro-tip:
Explore Government Grants and Incentives - Singapore offers various grants and incentives for startups and SMEs. Research available options to reduce initial costs and support your business growth.
Summary
Launch and run your Singapore company without getting buried in paperwork.
As a startup founder, you should be more concerned with expanding your company than getting bogged down in legalese and paperwork. Growwth Partners is aware of the difficulties involved in incorporating a business and maintaining compliance in Singapore. With our completely paperless services, you can launch your business from anywhere in the globe with ease and without worry.
We manage the complexities of compliance with our committed corporate secretary services, making sure you adhere to Singaporean laws. Avoid letting non-compliance cause penalties or interfere with your business's operations. Let us handle the specifics so you can focus on growing your business.