Singapore is the busiest port on the globe and a top offshore jurisdiction for foreign investments in the entire Asia-Pacific. According to the Heritage Foundation’s 2021 Index of Economic Freedom, Singapore is ranked number one. Singapore offers you the best launchpad for taking your business global, but the first step is company incorporation.
As we are going to demonstrate in this post, company registration in Singapore can be challenging because of the long list of required documents and lengthy process. In this post, we take a closer look at business set up in Singapore to demonstrate the primary benefits to expect and key steps to follow:
Special Benefits of Registering a Company in Singapore
The primary benefit of opening a company in Singapore is its robust economy, which you can count on for faster growth. The country has a well-developed free market economy that is primarily anchored in finance, trade, and manufacturing. The services sector in the country accounts for 75% of the nation’s GDP and is the largest employer. The country’s savings of its GDP is about 50%.
Other benefits that come with opening a company in Singapore are:
- Low corporate tax of up to 17%.
- Capital gains and dividends are tax-free.
- Singapore has signed over 140 international agreements to help local companies access and trade globally.
- Robust financial ecosystem.
- Open immigration policy.
- A pro-business economy that stops at nothing in creating the best environment for business.
A Step-by-Step Guide to Company Registration in Singapore
The benefits we have highlighted above are only a drop in the ocean of what you should anticipate. Remember that you can only enjoy these benefits after the correct registration of your company in Singapore. Check out the main steps below:
Step 1: Understand the Main Requirements for Company Registration in Singapore
To register a company in Singapore, the requirements are pretty straightforward. So, here are the main ones:
- Your company must have at least one shareholder, but the maximum number is capped at fifty.
- Registered capital of at least SGD 1, but you are at liberty to increase the amount anytime by injecting additional funds. Note that such additions require you to notify the registrar of companies.
- Company directors. The board of directors for your company can comprise Singaporeans and/ or foreigners, but one of them must be a resident. If you do not have a resident director, consider using a nominee director.
- A company secretary who must be a resident in Singapore.
- Every company must also have a registered address. We must point out that the address cannot be the PO Box but a physical address where the details of the company can be found.
Step 2: Decide the Company’s Corporate Structure and Get Approval for Its Name
Once you understand all the requirements, it is time to get the right structure for the company. This is very important because it determines the number of shares that shareholders will have, the directors, and who will serve as the resident director. In the structure, you also define the operational hierarchy, starting with the board of directors.
As you draw the company structure, ensure to have a pre-approved name. The name should be unique, not obscene, unreserved, and not infringing on other trademarks.
Step Three: Prepare All the Documents for Company Incorporation
So, what documents are required for your company to be registered? Here are the main ones:
- The company’s constitution.
- Consent from each director.
- Consent by the company secretary.
- Declaration of the company’s controllers.
- Details, such as copies of passports, shareholders and directors.
- Articles association.
- Memorandum of understanding.
Step Four: Incorporate the Company and Open a Bank Account
Armed with all the documents, which must be duly signed by respective parties, submit them to the Accounting and Corporate Regulatory Authority (ACRA). Once done correctly, you will be issued with two vital documents for your company:
- E-Certificate of incorporation.
- Business profile.
When you get to this point, your business will still not be ready to start until it has a corporate bank account. You also need to check whether additional licenses will be required for your company. Companies in education, telecoms, restaurants, and finance need to get additional permits.
Work with an Agency of Expert for Company Registration in Singapore
Although the process of company registration in Singapore is so simplified, we must say that many foreigners often get stuck midway. It can also be pretty expensive, especially when looking for a company address and resident secretary. The most convenient and affordable method of company registration in Singapore is working with an agency of experts.
The agency will also help you in preparing the documents needed in every step. In addition, the agency can come in handy in carrying out due diligence, drawing strategies for new market entry, accounting, payroll management, and filing tax returns.
Let an expert hold your hand to make the process of company registration in Singapore easy, fast, and fun!