Singapore is one of the world’s biggest economies and is ranked as the most business-friendly nation by the World Bank. Thus, it is no surprise that many people want to start companies in Singapore and gain access to the local market and Asia.
This article will show the basic requirements for company incorporation in Singapore. They include
Choose a Company Name
The first requirement is to pick a unique name that customers and vendors will use to identify your business. You must choose one that hasn’t been taken by another firm; you can check the companies’ registry to confirm this. Once you find a suitable name, submit it to the Accounting and Corporate Regulatory Authority (ACRA) for approval.
ACRA will reject a name if it is:
- The same as the name of another local firm or similar to an established trademark.
- Contains vulgar and offensive language.
It costs $15 to register a name with ACRA. After registration, the name will be reserved for 120 days, during which you must incorporate the business or let it expire. Approval usually takes a few days, but some applications may be referred to another government agency and lengthen the time frame.
Choose Your Directors
According to Singaporean law, every company must appoint at least one director and a secretary. One director must be a local resident of Singapore, and others can be foreign-based people. The secretary must also be a Singaporean resident.
You will need the following information for the directors and the appointed secretary:
- Nationality;
- Proof of residence;
- Full name;
- National Identification Number;
- Contact information (email address and phone number).
Corporate directors are responsible for managing the affairs of their company. They are required by law to ensure accurate record keeping, preparation of financial statements, and compliance with corporate disclosures. A corporate director must be at least 18 years old.
The secretary is responsible for managing administrative affairs such as preparing meeting minutes, updating directors on relevant law changes, and maintaining the corporate registers.
If you don’t know any local residents to appoint as directors or as a secretary, Osome can provide one for you.
Choose Your Shareholders and Share Capital
Of course, there is no corporation without shareholders, so you must choose the number of shareholders and the share capital, which refers to the amount of money invested. The shareholder could be an individual, a business, or a limited liability partnership.
You can issue different classes of shares (e.g., “A” and “B”) with different rights; this allows you to offer perks to investors, e.g., liquidation preference, and retain control of the company.
Set up the Company Address
Singapore law dictates that every corporation must have a local office address where they can receive mail concerning business-related affairs. The registered office address must be accessible to the public for a minimum of three business hours on each working day. You can use an address different from where you actually run your business.
Osome can provide a registered office address for you if you don’t have one or don’t want to use your real office.
Prepare Registration Documents and File for Company Incorporation
When you have all the required documentation, you can fill out your application form and submit it to ACRA for approval. The Bizfile+ system allows you to submit the application online with ease. Filing this application costs $300, and you can pay online.
If your application is approved, ACRA will send an email to all appointed company officers to request their endorsement; they must provide this endorsement within 60 days of receiving the email. Once that is done, you will receive a Certificate of Incorporation that acknowledges the registration of your business.
Conclusion
Singapore is one of the best places to run a business, and we have listed the main steps for company incorporation in the country. If you need help during the process, Osome is available to provide it in many ways.