If you want to register a company in Singapore, you need to fulfill some requirements in regard to personnel. In particular, you need to:
- Appoint a director who resides in Singapore
- Appoint a company secretary within 6 months from the date of incorporation
- Appoint an auditor within 3 months from the date of incorporation
Let’s find out what you can do to fulfill these incorporation requirements.
The fact Singapore encourages more and more foreign entrepreneurs to invest in the country bears a potential risk. Foreign companies in Singapore may take advantage of the city state’s policies, break the laws, and run away. This forces the government to impose the director requirement to enhance the governance over foreign businesses.
To be more specific, for a Singapore company registration, you must appoint at least one director who:
- Locally resides in Singapore
- At least 18 years old
- Has a full legal capacity
If you cannot find an eligible director, you can use a nominee service from a creditable provider. A nominee director will not take part in any day-to-day management activity in your company. He is just there to help you fulfill the incorporation requirement. In addition, he will check the company’s reports before the papers are being sent to the related government agencies, just to make sure that the company is complying with the local laws.
However, it is also possible for you to become the sole director of your Singapore company. You can do this by getting an Employment Pass. It is the pass allowing you to relocate and work in Singapore. This means that your company will hire you to work as a director. And when you move to Singapore, you will satisfy the local-director requirement. But until you get an Employment Pass in your hand, you need a nominee director.
According to the Companies Act, companies in Singapore must appoint a company secretary who:
- A natural person
- Locally resident in Singapore
Furthermore, this position cannot be left vacant for more than 6 months. This means you must appoint a secretary within 6 months after you set up a company in Singapore. The sole director and secretary cannot be the same person.
Similar to the local director, a service provider can also help you hire an eligible secretary for your Singapore company. This person will help you take care of the paperwork, making sure that your company will comply with the annual requirements. He/she will also act as a connection bridge between the company and the government, keeping the company up-to-date with the newest governmental regulations.
In particular, here are some common tasks that a company secretary is responsible for:
- Filing and sending reports to related government agencies
- Updating changes regarding the company and director to related government agencies
- Maintaining statutory registers and other important documents of the company
- Organizing board meetings and annual general meetings
- Giving advice to implement good governance good practices
- Other tasks that may be specified in the contract
Last but not least, an auditor must be appointed within 3 months after the incorporation of your company. However, if your company is legally exempted from this requirement, then there is no need to appoint an auditor.
To be eligible for an audit exemption, your company must be deemed as a small company. Particularly, the company must be a private company and satisfy 2 of the following 3 conditions in the first or second financial year:
- The total annual revenue is no more than $10m
- The value of total assets is no more than $10m
- The total number of full-time employees is no more than 50
If your company is a part of a larger group, then here are the conditions that need to be met:
- Your company is a small company
- The group is a small group (by meet at least 2 of the above 3 criteria on a consolidated basis for the past two consecutive financial years)
A solution to personnel requirements
There is a fast and convenient way for you to fulfill all the personnel requirements. That is using services from a trustworthy provider. You should try to look for a service provider that is capable of supplying all the necessary services.
Normally, an incorporation service provider will have an all-in-one package. The package will help you satisfy all the incorporation requirements. It will include a nominee director, a company secretary, and a local registered address in Singapore. For an auditor, if your company is a small company, then you don’t need to worry about appointing one.
With the help of a provider, you can set up a company in Singapore with ease. All you need to do is supply the information regarding the company’s type and name, along with the required documents for incorporation. The service provider will go on filing the application and submit it to the Singapore government on your behalf. The result is usually sent back to you within 24 hours.