COMPANY REGISTRATION IN SINGAPORE

As one of Asia’s big league salary economy, Singapore has various prerequisites that should be consented to register a company or work in a business.

Singapore is currently the best spot to begin a business to extend your overall reach. In view of its hearty yet well-disposed speculation and exchange guidelines, Singapore is perceived as quite possibly the best country on the planet to carry on with work. Company registration is expected for the company’s proprietors. In Singapore, it is basic and cheap to shape a company.

Singapore has been ranked second in the Ease of Doing Business Report 2020, which serves as a reference point for both foreigners and locals interested in establishing a business in Singapore. However, Singaporean laws prohibit foreign individuals or corporations from registering a business in Singapore. Therefore, those interested in company registration in Singapore must seek the services of a local expert firm.

BENEFITS OF COMPANY REGISTRATION IN SINGAPORE:

There are several benefits to initiating a business in Singapore.

Demography-

The vibrant city of Singapore is home to around 5.64 million people and sits on an island spanning 722.5 square kilometers. This city boasts a unique charm and has a high gross domestic product per person, which currently stands at US$58,248.

Despite its small size, Singapore is famous for its top-tier Changi Airport and strategic location near several major financial hubs in Asia. Destinations such as China, Hong Kong, Indonesia, and India are easily accessible within a few hours.

Vibrant Startup Ecosystem-

In 2020, Singapore was declared the freest economy in the world. It has always demonstrated its commitment to supporting new and growing businesses.

Undertaking the establishment of a business in Singapore provides an additional benefit of governmental aid, thereby simplifying the initial stages.

In Singapore, there are several major industries that have flourished, such as transportation, coordinated factors, biotechnology, and finance, making it one of the most prominent digital centers in Asia. Here are some statistics that can help identify its significance.

Special Tax Benefits-

Although some companies may find it difficult to deal with high partnership costs in other parts of the world, Singapore has come up with an attractive investment structure where corporate tax rates range from 0% to 17%.

Besides the fact that the partnership fees are low, there are various advantages:

Tax-free dividends
No tax on capital gains
Tax credit pooling
Unilateral tax credit
The amount of tax taken out of income earned from foreign sources has been decreased.

Advantages of registering a Singaporean company online from India:

Companies may incur charges ranging from 0 to 17%, while individuals may face charges ranging from 0 to 22%.
Tax-exempt dissemination of profits
No expense on capital increases
Simple Tax refund pooling
One-sided tax reduction
Reduced maintenance fees on income earned from sources located outside of Singapore.
The city-state has a total of 75 duty settlements, with 8 of them being slightly restricted and focused on payment for sea and air transportation. However, there are no rules limiting foreign-controlled companies.
There are 26 agreements relating to free trade or economic partnerships.
a deep-rooted monetary framework
Budget-friendly financial resources are easily accessible.
There are several factors that can contribute to Singapore becoming a leading hub for intellectual property (IP).
The largest financial association in Asia for business customers is comprised of over 160 banks.
Markets for financial instruments that have a high level of liquidity.
The easiest place in the world to conduct business.
The most well-known location for privacy in the world.
Clear and viable duty rules
An expert and seasoned staff with thorough preparation
The approach of unrestricted division for nonresidents living far away.

The prerequisites for setting up a business in Singapore are as follows:

Appointing a local director
In order to establish a company in Singapore, it is required to appoint at least one director who is a resident of Singapore. The appointed director must either be a Singapore resident, a permanent resident, or hold an EntrePass. Additionally, it is preferred that the local director hold an Employment Pass.
Upon request, Tetra Consultants will provide our clients with a selected administrative director in Singapore. Our legal team will establish a legal agreement to be signed by all parties, ensuring that the appointed local director remains inactive and holds no active authority in your organization.
General requirements

Each type of business structure has its own specific requirements for incorporation. However, there are general requirements for establishing a company in Singapore, which include:

A least 1 resident director
A least 1 shareholder
A least 1 company secretary
An initial setup requires a minimum capital of S$1.
A Singaporean location that’s officially listed as the workplace’s address.

There are certain conditions that must be met by a private limited company:

The most commonly selected type of corporate entity in Singapore is the private limited company, which is kept confidential. If you are wondering about the process of registering such a company, there are minimal requirements to be fulfilled.

As per the regulations stipulated by the Singapore Companies Act, it is mandatory for all companies to possess a registered address in close proximity as well as have a company secretary.
In Singapore, there is no requirement for a minimum established capital for the majority of business operations.
If a company is interested in starting a business related to financial services, healthcare, or food and beverage industry, they must obtain specific operational licenses.

HOW TO REGISTER A COMPANY IN SINGAPORE?

ACRA in Singapore has computerized the methodology for company registration. Typically, it takes only 1-2 days for a company to be established.

Choose a name and location for your business –

In order to establish a company in Singapore, the name of the company must first be approved. Approval for the company name can be obtained by submitting an application to ACRA.

In general, the approval or rejection of a name will usually happen within an hour. However, if the proposed name includes specific words like “bank,” “finance,” “regulation,” “media,” etc., it may require review and approval from an external government authority. In this case, the name approval process may be delayed for a few days or weeks.

To increase the likelihood of fast name approval, make sure that the proposed name:

The name of the company is not the same as or closely resembling any other company name already in existence in the area.
Doesn’t violate any registered brand names.
Is not obscene or vulgar
Is not already reserved

If you use a name that has been approved by ACRA, it will be reserved for 60 days from the date of use. You can extend the reservation for another 60 days by submitting a request for an extension before it expires. To learn more about choosing an ACRA-approved business name, read our other article.

Make sure you have the company’s constitution prepared to be submitted –

The process of registering a company requires the submission of a document called the company constitution (previously called Memorandum and Articles of Association) to ACRA. This document serves as an official record that outlines the rules and regulations regarding the internal representation, structure, shareholder rights and relations, and other important guidelines necessary for the management of the company. Typically, legal professionals will review this document as part of the incorporation process.

Here, you can find sample Constitutions that can be used to create a company constitution without any prior preparation.

Finish the sign-up process –

Submit the necessary paperwork electronically to complete the registration process for the company.

Drafting Your Shareholder Agreement

In addition to the company’s constitution, another important legally binding document that is required as part of the merger process is a shareholder agreement.

The shareholder agreement is a document that outlines the rules and regulations governing the operations of a company, including the interactions among various entities such as shareholders, directors, and officers. It supplements the company’s constitution by including specific rules that are not covered by it.

A comprehensive understanding among shareholders ensures efficient management of the company and minimizes disagreements among various business factions within the company.

POST-BUSINESS-REGISTRATION FORMALITIES:

Certificate of Incorporation –

In an email, ACRA confirms the successful incorporation of the company, providing its registration number. This electronic copy is considered to be the official certification of the company’s registration in Singapore.

Regardless, we are able to obtain a physical version of the declaration by requesting it online. A nominal fee will be required.

Company Business Profile –

After establishing a company in Singapore, you have the opportunity to obtain a business profile of your company. This document provides detailed information about the company and is available online for a small fee. It is presented in PDF format and can be downloaded within an hour of the request.

The crucial details included in the firm’s business profile are as follows:

Company name and registration number
Previous names for the company, if any
Registration date
Principal Business Activities
Paid-up capital
Registered address
Details regarding the Shareholders, Directors, and Company Secretary.

After establishing a business in Singapore, you require official copies of the Certificate of Incorporation and Company Business Profile for lawful and authorized purposes. These documents are necessary for tasks such as opening a corporate bank account, finalizing the office lease agreement, and subscribing to essential office services like internet and phone.

Acquire Business Licenses and Permits –

The need for a permit to operate or function for your newly established business depends on the type of activities it engages in. If a permit is required, it is advisable to obtain it before commencing operations. Examples of businesses that require a permit include cafes, cleaning services, educational institutions, travel agencies, financial services, and import/export of goods.

Enrolling in the Goods and Service Tax (GST) system:

If your company has an annual turnover exceeding S$1 million, it is recommended that you register for GST. Once registered, it becomes your responsibility to collect a 7% GST from your customers.

You need to send it to the IRAS during the time when GST is being recorded. In several countries, GST is known as VAT (Value Added Tax).

Company’s Stamp –

The credibility of the company’s records is backed by the use of an elastic stamp, which bears the company’s name and registration number. This stamp gives the company’s official documents a professional and authentic appearance.

Share Certificates –

The secretary of the company distributes share certificates to each shareholder, which serves as proof of their ownership of the company and indicates how the shares are divided among them.

First Board Resolution –

Immediately after registering a company in Singapore, it is necessary for all shareholders to convene a meeting. During this meeting, they must discuss and approve resolutions to appoint at least one director to manage the company’s activities. They also need to pass resolutions to hire other company officers such as an auditor, the company secretary, and more.