The Singapore government is open to start-ups and provides funding, and offers tax exemptions through various schemes. The official Company Registrar is the Accounting & Corporate Regulatory Authority (ACRA), which supervises registration. The process of company registration in Singapore is a relatively easy task when the desired company fulfils all of the compliance requirements. Foreigners cannot directly start a new business in Singapore. Hence, they need to hire a local business registration provider and a registration filing agent. These experts guide new investors through the process and provide solutions to the issues that arise, thus saving valuable time and unnecessary expenses. Here is an overview of the things that one must consider while registering a company in Singapore.
Necessary Requirements to Register a Singapore Company
1) Name of the Company
It is recommended to shortlist three potential names for the company to have back-ups if the first choice is rejected or is not available.
The company must appoint one or more directors who are individuals aged 18 and above. They must be qualified to hold directorship in Singapore and not have the record of being disqualified elsewhere.
3) Resident Directors
There must be at least one resident during the time of registration which is appointed as a director. This individual must be a citizen of Singapore, a permanent resident or an EntrePass visa holder.
4) Shareholders and Paid-up Capital
There must be at least one to fifty individual shareholders, a legal trust or a company that enables them to own the new company in Singapore.
5) An Address Registered in Singapore
The address provided in the documentation during registration must be local, i.e., Singaporean. Only a physical address will be accepted, and no other forms like P.O. Boxes.
6) Company Auditors and Secretaries
Within three months of registration, every company or start-up must have an auditor unless exempted from audit. They must also appoint a company secretary who will help the directors prepare and manage all the necessary files and keep the documentation updated for the company to stay compliant.
Helpful Considerations to Keep in Mind
1) Pick the Company Name After Thorough Research
There are numerous companies registered in Singapore. To compete with them, the start-ups need to have a strategic name that increases their brand value and places them in the market. They must be cautious of using politically acceptable names, acquiring the required licenses and not plagiarising existing names. Having similar sounding words in a company name is appealing and also, keep in mind that the company trading name can be different from the registered name.
2) Take Benefit of Tax Incentives and Insurances
The Singapore government provides attractive tax incentives to eligible start-ups, which is one of the main reasons many entrepreneurs worldwide aim to start a company there. They provide tax benefits on tax residency, corporate tax rebate, Regional and International Headquarters Award, Pioneers Certificate (P.C.) Incentive, and Development and Expansion Incentive (DEI). Acquiring insurance protects the company.
3) Acquire the Required Licenses and Permits
Some company names, business activities and SSIC codes require a license before the establishment of a business. The company must visit the business license portal that delivers an efficient and user-friendly licensing experience to all the companies going through the process. It also provides information on the guidelines for restricted company activities given by ACRA.
Company registration in Singapore is an easy process when all the procedures are followed correctly through proper channels like SBS Consulting.