What You Need to Know About Company Incorporation in Singapore
Singapore is an investment haven. No wonder many companies, both foreign and local, are continuing to invest in the country, given its rich economy and market opportunities.
While there are many ways of starting a business, incorporating a company can actually be beneficial for you. A corporation is a legal entity that can bring lawsuits and manage its own assets.
It can also protect its owners’ personal assets because of the concept of limited liability. This means that the investors’ personal assets cannot be used to settle the financial obligations of the corporation during the liquidation process.
Business Structures to Consider When Incorporating a Company
In Singapore, an investor can consider the following business structures when incorporating a company. Usually, their choices depend on the potential benefits each business entity type has.
Private Limited Company. Both local and foreign investors prefer to incorporate a private limited company. This is because of the tax benefits and suitable structure for any business expansion and growth.
It can have at least 1 shareholder and a maximum of 50. At least one of the directors should be a Singapore citizen, a permanent resident or an Entrepass holder.
Subsidiary company. The foreign investors are usually the ones incorporating a subsidiary company in Singapore. This is part of their expansion plan, tapping into new markets for their products and services. It is recognized as a local company, receiving appropriate tax benefits, exemptions, and rebates from the government.
Branch office. Another option for foreign companies is setting up a branch office in Singapore. It is recognized as an extension of the parent firm. This means that it has no separate entity and it is not recognized as a local company in Singapore.
How to Incorporate a Company in Singapore
The Accounting and Corporate Regulatory Authority (ACRA) is the main government body responsible for regulating business registration, financial reporting, and corporate services, among others, in Singapore. You should be able to carefully follow the steps to incorporate a company in Singapore so you will not have any problem.
Securing approval for company name. You have to provide three to five potential company names to ACRA. The agency will be checking your submission against its database. You have to take note of the following:
- You can get approval faster if you propose unique names—which are representing the nature of your business—for your company.
- Do not use vulgar or obscene words. It will be rejected right away.
- Make sure that the proposed names are not in violation of copyrights and trademarks.
The process can usually take 60 days.
Prepare needed documents. Prepare the following for submission:
- Approved business name
- Discussion of nature of business
- Official local address
- Particulars of shareholders, directors, company secretary
- Foreign Individuals: a copy of passport and proof of overseas residential address
- Foreign Companies: Memorandum and Articles of Associations, Certificate of Incorporation
- Singapore Residents: A copy of Singapore identity card
Submission of the application. Thanks to technology, you do not need to queue in long lines to file for your application. You can accomplish the process of incorporation in Singapore through online submission to ACRA.
Taking the Leap
It might be intimidating to take on the challenge of establishing a business and incorporating a company from ground up. But always remember that preparation, in any type of business venture, is key to success. Include perseverance, hard work, and determination, you will be unstoppable.
If you need assistance for Singapore company incorporation, do not hesitate to contact 3E Accounting Singapore right away. Our team can offer the best array of business services—all of which are top-notch in the industry.
We can help you accomplish your company registration today.