Starting a business in Singapore is relatively simple, but it’s still vital for you to prepare for the process. Here are some things you should know before incorporating your business in Singapore.
Who can register a company in Singapore?
In Singapore, anyone who meets the required standards can be relatively easy to register the company. Foreign investors must use a registered Singapore company incorporation service to comply with the Singapore Accounting and Corporate Regulatory Authority (ACRA). When you work with a good company incorporation service advisor, the process of forming your new business will be quick and easy.
ACRA requires that foreign entrepreneurs appoint a local Singapore resident as a director of their company. However, after incorporation you can own 100% of the company shares and be a foreign director. You will be required to provide your Singapore company formation agent with the following documents: a copy of your passport, proof of your residential address overseas and a business profile.
What is required for company incorporation?
The procedures for registering a company in Singapore are straightforward and uncomplicated. They are:
- At least one (1) Shareholder.
- At least one (1) Local or Resident Director.
- At least one (1) Company Secretary.
- A registered address in Singapore.
- The minimum paid-up/share capital required is S$1.
How to Register a Company in Singapore?
In Singapore, ACRA has made the procedures for company registration fully computerised. A new company can be incorporated in 1-2 days.
1. Choose a company name
You must first register your company name with ACRA. It is important to use a local Singapore company incorporation service provider when handling all of these processes.
To register a company name in Singapore, you must follow these rules:
- The company name you choose cannot be obscene or offensive.
- Your company name must not infringe on the trademark rights of others.
- You cannot register a company name that is already in use by another Singapore business.
- Your company name cannot be reserved by another business entity.
Generally, you will receive a notification of approval or rejection within an hour unless your proposed name has certain words (e.g., bank, finance, law, media) that might require review by an external government authority. If so, name approval could be delayed by days or weeks.
The name that has been approved will remain reserved for a total of 60 days from the date of application submission. To prolong the name for an additional 60 days, it is necessary to submit a request for an extension shortly before the expiration date.
2. Prepare registration documents
After the approval of your company name, the next step would be to create registration documents that will enable the company registration services agent to incorporate your company online.
Documents needed for the registration of a company with ACRA:
- Each director must sign a Consent to Act form.
- The Consent to Act form needs to be signed by the company secretary.
- A Business Constitution (formerly known as Articles of Association). You can either create your own constitution or use the official template.
- Identification and proof of residency are mandatory for all officials and shareholders.
- The Singapore company incorporation service that you select will guide you through each of the necessary registration documents, making the entire process seamless. In addition, these registration documents are typically approved within 24 hours of completion.
3. Company Registration with ACRA
Once your chosen company name has been authorized and you have completed the submission of your registration documents, you are now eligible to be officially registered with the Singapore Accounting and Corporate Regulatory Authority. It’s all done online in less than one hour, but rarely, it may need to be referred to another department in the government which could take a few extra weeks. For most new businesses, you can be up and running in Singapore in just a single day.
What to do after registering a company in Singapore?
If you’ve completed all the necessary steps, you should be ready to launch your business in Singapore right away. Nevertheless, there are still a few other things you may want to do during the subsequent days and weeks.
- Be sure to explore what business licenses you may need depending on your profession, such as medicine or law.
- Open up a business banking account.
- Register for GST.
- Make sure to include your ACRA registration number on all of your official letterheads, invoices, and other documents.
- Importer or exporters must register with Singapore Customs.
- Make sure you comply with ACRA regulations.
Why should you consider opening a company in Singapore?
Foreign business owners all over the world choose Singapore for many reasons. The country is well-known for its business-friendly ecosystem, with a thriving economy that has made it a startup hotspot in Southeast Asia. If you’re still undecided, here are some of the main reasons that might make Singapore a good place to start your company:
- The government strongly supports startups.
- Tax exemptions and low corporate tax rates.
- There are no dividend or capital gains taxes.
- No restrictions on foreign ownership of business.
- Stable financial system.
- Ease of company incorporation.
- The legal system in this country is world-class.
- Talent hub.
- A small company is not required to conduct an audit.
Acc Pro (Singapore) can assist with the process of starting a company in Singapore. We offer various services such as incorporation, legal compliance, accounting, and consulting. With our expertise and experience, we can help you navigate through the complexities of setting up a business in Singapore.
