Company Incorporation Singapore
Company incorporation is the process of incorporating any type of business entity in Singapore. Due to the country’s extensive trade networks and government initiatives, many multinational companies and entrepreneurs are getting interested in setting up a Singapore company. But just like many countries in the world, Singapore has its own set of initial and ongoing regulatory compliance for starting a company. For this reason, it’s advisable for both local and foreign entrepreneurs to engage a professional company incorporation firm like Enterprise Assurance PAC. EAPAC’s goal is to make it easy for company owners and entrepreneurs to register and operate their business in Singapore.
There are many reasons why business owners should incorporate a company in Singapore. Apart from double taxation avoidance agreements which help the country to widen its economic space and build up its reputation as a business hub, entrepreneurs can also benefit from low business costs, easy access to investment, tax exemption schemes and stable rules and regulations in Singapore. Statutory board Accounting and Corporate Regulatory Authority (ACRA) also oversees the entire company incorporation process, eliminating bureaucratic red-tape.
Incorporation Options and Types of Business Entities in SG
Private Limited Company
Private Limited Company is the most preferred business entity by local and foreign individuals. A privately limited company style is considered as a separate legal entity and shareholders are protected and will not be held liable for the company’s debt and losses beyond the amount of capital they contribute. This form of incorporation has the most efficient tax structure.
Exempt Private Company
It is a private company which has 20 or more shareholders, none of which is a corporation that holds any beneficial interest in the company's shares.
Public Company Limited by Shares
A public company limited by shares can have more than 50 shareholders and the company can increase capital by offering shares and debentures to the public.
Public Company Limited by guarantee
This type of company carries out non-profit activities that will benefit the nation or the public.
Many foreign companies prefer this type of business entity. A subsidiary company is a private limited company incorporated in Singapore with the parent company as its shareholder. It enjoys local tax treatment and legal entity that is separate from its parent company.
The liabilities of a branch office extend to its parent company. This type of entity is registered in Singapore as an extension of its parent company.
A representative office does not have legal status and cannot engage in any profit yielding activities in Singapore. It is mainly established as a temporary arrangement for conducting marketing research activities.
It is the riskiest type of business entity because, from a legal perspective, the owner and the businesses are one and the same. Since this form isn’t considered as a separately incorporated entity, the owner owns all assets and liabilities of the business. Creditors to whom the business owes money can come after the sole proprietor’s personal assets in case of a business closure or bankruptcy.
A partnership is a business firm formed by two to twenty partners. This business structure attempts to fix the limited-expansion constraint faced by a sole proprietorship by allowing two or more people to co-own a business. A partnership firm has no legal existence separate from its partners and it comes to an end with death, insolvency, incapacity or the retirement of a partner. Partnerships in Singapore can be of three types: General Partnership, Limited Partnership, and Limited Liability Partnership.
Requirements for Company Incorporation Singapore
All business owners or entrepreneurs who want to incorporate their business in Singapore must receive approval for their new company name. When selecting a company name, you must ensure that there are no words that can be construed as vulgar or inappropriate and it does not infringe on any trademarks. Business owners may also need prior approval of governing bodies that oversee certain industries before they can proceed with the reservation of the business name.
A brief description of your business activities is necessary when incorporating a company in Singapore. You can use the Singapore Standard Industrial Classification Code (SSIC) to indicate the business activities your company will be engaging in.
A Singapore private limited company can have a minimum of 1 and maximum of 50 shareholders. The country allows 100% local or foreign shareholding and permits new or existing shares to be transferred to different individuals after the company has gone through the incorporation process. A director and shareholder can be the same or different person. Details of shareholders will appear on public records.
Singapore requires a minimum of one resident director (a Singapore citizen, a Singapore Permanent Resident or a person who holds an Employment Pass/EntrePass) who is at least 18 years of age, has not been convicted for any criminal malpractice in the past and is not a director of an insolvent company. He or she should not be an undischarged bankrupt by a Singapore Court or a foreign court. Directors can be shareholders and shareholders can also be directors.
The Section 171 of the Singapore Companies Act requires all business owners to appoint a company secretary within 6 months from the date of incorporation. The company secretary will assist in the administration of the company and will be considered as an officer in charge of regulatory compliance. He or she must be a natural person who is “ordinarily” resident in Singapore.
In case of sole director/shareholder, the same person cannot act as the company secretary. Most company incorporation firms like EAPAC offer Company Secretarial Services as part of the company incorporation package.
Paid up capital
Paid up capital or share capital pertains to the total amount of capital funded by shareholders. In order to register a Singapore company, the minimum paid-up capital is S$1 or its equivalent in any currencies. Paid up capital can be increased any time after the incorporation of the company but bearer shares are not permitted.
A local Singapore address (residential or commercial) is required in order to register a Singapore company. The registered office is where notices and official documents will be sent to, so the address must be open for at least five hours during ordinary business hours. Business owners also have an option to rent an office space, opt for a virtual office or apply for a license to have a home office.
The EAPAC Advantage
Fast Turn Around Time
We can incorporate your company within one to two days provided you have submitted complete requirements.
We will guide you in the company set up and you will receive expert advice should you have other business ideas or requirements. Our phone lines are always open if you have questions regarding the registration of your company in Singapore. We’ll also notify you if the incorporation process will take more time or if ACRA will require additional documents.
EAPAC understands that each individual has different needs and financial capability, that’s why we’re offering flexible payment schemes and tailored payment plans.