What is Company Registration in Singapore?

In Singapore, there are certain requirements which must be fulfilled for company registration in Singapore. With a team of professionals we can help in company incorporation in Singapore. In Singapore, self-registration of a new company is not permitted for foreigners.

For company registration in Singapore and to register a new business in Singapore, the most common way is to create private limited liability company. It is a separate legal entity and provides shareholders protection from debts beyond the amount of capital they contribute. In Singapore, Company is incorporated as per the rules prescribed under Singapore Companies Act. If we talk about the eligibility then anyone above the age of 18 can proceed for company registration in Singapore. The most efficient tax structure is provided under this type of company incorporation.

What are the Benefits of Company Formation in Singapore?

Following are the benefits of company registration in Singapore

To take advantage of Singapore Double Tax Agreements, enjoy Singapore tax resident status, tax exemption schemes and tax incentives such as the productivity and innovation credit which incentive companies to improve their productivity by purchasing technology.

Limited liability of members.

Only a foreigner or local entrepreneurs aged 18 years or above are allowed to apply for company registration in Singapore and for directors of private limited companies, there is no age cap.

What are the requirements of Company Registration in Singapore?

Following are the requirements of Company Registration in Singapore:

Company Name For company registration in Singapore, one must obtain approval for the new company name.

Directors There is a requirement of at least one Resident Director who can be a citizen, permanent resident, or someone with a valid employment pass or dependent pass. The number of local and foreign directors who can be appointed is not fixed. It must be ensured that they fall under the eligibility criteria and do not have any criminal record and record of bankruptcy. Directors need not to be a shareholder in a company.

Shareholders In Singapore, in a Private Limited Company there can be shareholders between 1 and 50 who can be individuals or entities, whether local or foreigners. After company incorporation shares can be issued and transferred to the shareholders. Company is considered as an Exempt Private Company (EPC) if the private company has at least 20 shareholders. In such companies no corporation holds (directly or indirectly) any beneficial interest. EPC will enjoy the benefit of audit exemption if the Company fulfilled the requirement of small company. There is a requirement of minimum of one shareholder. There is 100% foreign ownership allowed.

Company Secretary After company registration in Singapore, there is a requirement of appointing a qualified company secretary within six months of incorporation under section 171 of the Singapore Companies Act. Only a natural person living in Singapore is eligible to become a company secretary in Singapore whereas a sole director or shareholder is not eligible.

Paid-up Capital At the time of company registration in Singapore, there is a requirement of minimum paid up capital of S$1 which can be increased at any time after incorporation.

Registered Address For company registration in Singapore there is a requirement of registration of local business address whether residential or commercial but not a post office. In Singapore, there is a scheme named Home Office Scheme under which, homeowners are permitted to conduct operation of small-scale businesses on residential premises. The same scheme is also applicable on HDB and private properties.

Taxation As Singapore companies have the most efficient tax benefits and best business reputations.

Following are the Singapore's tax exemptions and incentives:

On first S$300,000 of annual profits, pay not more than 8.5 % tax and 17 % thereafter Dividend or capital gains taxes are not levied.

Company Registration in Singapore by Foreigners

Following consideration need to be fulfilled for company registration in Singapore by foreigners

The records of director and shareholder are public accessible on the fee of $5.50. Foreigners are forbidden to self-register a company in Singapore. If you do not live in Singapore but wants to setup company there then there is no requirement of Singapore visa. One can operate a company from anywhere in the world and by using a visitor visa one can visit on short-term basis. But there is a requirement of local director living in Singapore. To locally operate the Company there is a requirement of Employment Pass or Entrepreneur Pass after obtaining this pass one will become the Company’s local resident director.

Documents required for Company Incorporation in Singapore

Here are the following documents are required for company incorporation in Singapore

Name of the Company.

Brief Description of Business Activities.

Details of Shareholders.

Details of Directors.

Registered Address Details.

Details of Company Secretary.

Memorandum and Articles of Association (MAA).

A standard MAA document is provided by Singapore Company Registrar which is suitable for most instances.

Usually no restrictions except in case of financial services or other politically sensitive businesses.

Procedure for Company Registration in Singapore

The company registration in Singapore is a fully computerized procedure as Registrar of Companies is completely computerized. Company registration in Singapore and name reservation can be done simultaneously.

1. Name Reservation

Before company registration in Singapore, the Singapore Government approves company name. And the Registrar will oversee the whole process. In the process of name approval there are certain words which slowdown the process such as law, media, bank and finance. Using such words can delay the whole process by days or weeks.

For expediting the process, select a name which:

Is not similar to existing company’s name and is different Is not showing infringement of trademark Is not a bad, obscene or rude name

Name can be for 60 days and it can be for another 60 days by filing an extension.

2. Company Registration

After the name approved by Registrar of Companies, application for company registration in Singapore and documents will be processed in few hours. The procedure of company registration in Singapore is easy but the application can be delayed also. The application might get delayed when people from certain countries apply which implies that additional interrogations are required to be performed by the government authorities.

Post Registration Requirements

Certificate of Incorporation An email will be received from the Company Registrar. An email will confirm about the company registration in Singapore and inform about Company Registration Number. This will be the official certificate of incorporation. In Singapore paper certificates are no longer used, although on the payment of S$50 fee, the Company Registrar will give it. Usually, the processing time takes 5 days.

Company Business Profile Company business profile is required to be created by the Company Registrar after completion of the company registration in Singapore.

Following information is included:

Name of the Company and registration number Company’s previous names (if any) Date of Incorporation Principal activities Paid-up capital Registered address Details of Shareholders Details of Directors Details of Company Secretary

One can proceed with all legal and contractual tasks which are required to be performed after receiving an email notification and business profile.