Singapore Company Registration; Things To Take Note As A Foreigner

Singapore is widely recognized as an excellent business destination by foreigners. Before you can start your business activities, the first thing is to find out the process of Singapore company registration.

What is a Company in Singapore?

Do you know what a company in Singapore means? It actually refers to the legal entity which is either separate or distinct from its directors and shareholders. Just like in the other parts of the world there are two types of companies mainly public and private, similar is the case with Singapore. Where the public listed are companies that are listed on Singapore Exchange and have over 50 members, the private ones are not listed on the stock exchange of Singapore with the maximum limit of 50 members only. Are you among those people looking forward to having your business set up in Singapore due to the favorable business climate? If so, below are the things one must know about Singapore company registration;

singapore company registration guide infographic

Singapore Company Registration Guide for Foreigners

Where the foreigners are looking forward to start-up a business in Singapore, they have two options as below;

1. Establish a company using the EntrePass /Employment Pass and relocate to Singapore
2. Make an appointment of a local resident director for the newly established company

Once selected, below is the guide to be followed;

A.Choosing the right business structure to maximize the tax benefit

Once you decided to have a business set up in Singapore, it is essential to find out what business structure suits you the best. The three types of businesses include private limited company (Pte. Ltd), sole proprietorship and limited liability partnership (LLP) where all of them need to be approved by ACRA. For the purpose of incorporation, one must be 18+ age. When dependent on the scalability and robustness of the business, Pte.Ltd has a greater advantage than the sole proprietorship as those with Pte.Ltd has to pay 0-17% tax while others are to pay up to 22% on the taxable income.

B.Documentation required for registering the company in Singapore

Once the business structure is selected, the following documentation becomes a requirement:
i.   Registration of company name with ACRA so you are the only one
ii.  Business activities description
iii. Registration address details of the company
iv. Particulars of shareholders, directors as well as the Secretary of the company.
v.  Foreign identity proof
vi. Memorandum and article of association by foreigners
vii.Singapore ID card from the residents.

Core steps to take when registering for Singapore Company Registration

Following are the steps that must be taken during Singapore Company Registration

A. Reservation of the company’s name
While registering for a new company in Singapore, the name of the company must be approved by ACRA. Since it requires approval, one must choose to have a unique name for their company and have no copyright issue. In addition, approval from the external authorities must also be taken specifically if it carries words such as financial, banks, etc. Once the name of the company is approved, now it is time to register the company.

B. Compliance with Singapore law
When registering for a company in Singapore, it is required for the one to stay in compliance with the laws set.

Accounting needs– For individuals going for the Singapore registration for their business, it is a must to have the accounting books prepared accordingly. From ledger to trail balance to cashbook, one must have all the accounts maintained on time.

Mandatory AGM– Holding of AGM is referred to as the mandatory requirement for all the companies once in a calendar year. It includes taking approval of the financial statement.

Returns filling annually– All the returns must be filled one month after the AGM takes place.

Tax filing annually– The final date for filing the tax is 30th November for paper filings and for e-filing 15th December.

Determination of the financial year– In accordance with the rules set by Singapore for Singapore Company Registration, one is free to choose the financial year as it starts in any month of the year.

Want to have your own company set up in Singapore, but lacks the funding amount? The start-up friendly ecosystem in Singapore is actually making things easier. Due to the availability of a series of funding assistance within Singapore, it has been referred to as the perk of Singapore Company Registration. This basically is the government support to the start-ups as a lot of money has been put into the schemes. In order to follow up on your innovative ideas, you can choose to opt for any of the schemes. In addition, there are also grants by the government, equity programs as well as incubators to support the funding for the start-ups.

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