This article provide a summary of Singapore company registration. The necessity of following the law, the process of registering a business, and the distinctions between local and international business owners are the main points of emphasis.
What Are the Minimum Requirements for Registering a Company in Singapore?
You need to know several things as a business owner when it comes to company registration in Singapore.
- Company Name: Prior to registration, ACRA must approve the proposed company name.
- Resident Director: At least one resident director must be appointed by each business (aka local director). The following people may be designated resident directors under ACRA:
- A local person
- A permanent resident (PR) ,
- An EntrePass holder
- A person who is in possession of a valid Dependent Permit or Employment Pass (DP). Remember that in order for an EP holder to serve as a director, a Letter of Consent (LOC) is necessary.
- Foreign Director: Following the nomination of a resident director, you are free to name as many resident and non-resident directors as you like. All resident and non-resident directors must be at least 18 years old and have a clean criminal history.
- Shareholder: Up to 50 shareholders, who may or may not be directors, are permitted in a private limited corporation by shares. Companies or natural persons may be shareholders. 100% non-local share ownership is also permitted.
- Share Capital: You must have issued share capital worth at least SGD 1 to register a Singaporean company. There is no minimum paid-up capital requirement. Take note that the minimum share capital requirements for businesses in the regulated industry vary.
- Company Secretary: Within six months of registering your Singapore business, you must name a competent resident company secretary. The position of company secretary is not open to sole directors or shareholders.
- Registered Address: The company’s local registration address must be in Singapore. It can be either a house or business address, but a PO box is not acceptable.
The 3 Simple Steps to Register a Company in Singapore
Singapore, in contrast to most other nations, makes it simple for both domestic and foreign business owners to create a new company.
Step 1 – Obtain a Company Name Approval from the ACRA
The ACRA must approve the company name before owners of businesses can register them. If you follow these instructions, you can complete this process online and should receive clearance quickly.
- Names must not be the same as any Singaporean corporation or business that already exists.
- It must not violate any already-registered trademarks.
- It must not use crude or offensive words.
- The name you choose cannot be reserved by another business.
- If the words “law,” “school,” “bank,” and other regulated business terms appear in your company name, you may need to undergo additional screening by the relevant governmental organizations.
- The approval process could take a few weeks if the government authority must go through further verification.
Step 2 – Prepare the Necessary Documents for Singapore Company Registration
Following ACRA’s approval of your company name, the following documentation is needed to register your business:
- Company Constitution: This is previously known as Articles of Association. You can either use the standard Singapore constitution template made available by ACRA, or the professional firm you engage would be able to draft one and advise accordingly.
- Shareholders’ identification and residential address details
- Each appointed director needs to sign a Signed Consent to Act as a Director.
- An appointed company secretary needs to sign a Signed Consent to Act as Company Secretary.
Step 3 – Register your business with ACRA (the Singapore Company Registrar)
A new business can formally register with ACRA once the name has been authorized and the necessary paperwork has been prepared. This procedure can be completed in under an hour online.
In a few rare instances, it could be necessary to refer certain company registrations to other government agencies for additional review. It can take a few weeks if ACRA conducts additional verification.
How Will I Know that My Singapore Company Is Registered?
ACRA will transmit the following details to you or the Registered Filing Agent you engaged as soon as your Singapore company has been successfully registered:
- Business Profile
- Certificate of Incorporation (COI)
To assist you in doing business-related legal and contractual operations in Singapore, all you will need is the email notification for the company business profile and registration. Opening corporate bank accounts, agreeing to office leases, and even signing up for phone and Internet service are just a few examples.
Once your Singapore business registration is complete, there are still some more requirements and paperwork to complete.
You must create share certificates for each shareholder and a share register that informs ACRA of the number of shares each shareholder is entitled to.
Can Foreigners Register a Company in Singapore? Will They Own 100% Equity of the Company?
A Singapore firm can have international individuals or companies as shareholders. Foreign nationals can also establish businesses in Singapore without needing to move there specifically for that purpose. They may manage the nation from abroad. However, they must obtain a Singapore immigration pass if they decide to move. Due to its operations in a country other than that of the beneficial owner, the Singapore-registered firm is now classified as an offshore entity.
How Can Foreigners Register a Company in Singapore?
In Singapore, foreigners can register their firm without fuss and without having to worry about bureaucracy or corruption.
You simply need to pick what kind of legal entities you need to register, just like a conventional business. The internet site of ACRA might be used for this. However, you’ll need a SingPass to access the portal.
Note that only Singapore citizens (who may also be Singapore permanent residents) are eligible to receive the SingPass; as a result, foreigners must work with a Corporate Service Provider (also known as a Registered Filing Agent RFA). In this situation, Piloto Asia will be more than delighted to help foreign entrepreneurs who wish to set up shop in this country. Following that, foreigners will have two alternatives for doing their business in Singapore.
Registering your company in Singapore doesn’t have to be complicated. You simply need to go through the correct services to get the task done quickly and professionally.
If you’re a local or foreign company that would like to establish your business in Singapore, consult EBOS Cloud Accountants today to get started!