Incorporation of a company in Singapore
Singapore is one of the countries that offers a favorable environment to start a business. Local residents and foreigners, above the age of 18, can register a company in Singapore, as long as it complies with the existing rules and requirements for companies. It is recommended to seek the services of a professional firm when incorporating a business, especially for foreign entrepreneurs because Singapore law does not allow foreigners to register a company by themselves.
Most private companies in Singapore are registered as private limited liability companies. In addition to being limited to just 50 shares, this type of company limits shareholders’ liabilities to the number of shares they own in the company. Beyond the value of their shares, they will not be responsible for the debts of the company.
Registering a new company or converting an existing company into a company in Singapore is quick and efficient thanks to the fully computerized system. The fastest a company can be incorporated is 1-2 days. Now, what is the procedure to incorporate a company in Singapore? The important steps are listed below.
1. Know the eligibility requirements. Before registering a private limited company (Pte Ltd) with the Singapore Registrar of Companies, there are certain things that need to be considered. The company must:
- Have at least one director who must be a Singapore citizen, Singapore permanent resident, employment pass holder or dependent pass holder
- Have at least one shareholder who can also be the director
- Have a business name that is not identical to any other registered business name, that is not obscene, vulgar, or reserved.
- Have a local address for the place of business that must not be a post office box.
- Know your SSIC code (Singapore Standard Industry Classification) which is necessary to categorize the business
- Not have mediasave liabilities or have made payment arrangements.
2. Get a business name approved. Prepare at least two or three possible business names when applying to the Mercantile Registry. In case your first or second choice is already registered or not approved, you are ready with another option.
This process typically takes less than an hour until you receive an approval or rejection notification. However, if additional approval is needed from another government authority, approval may take a few days or weeks. The latter is often the case for company names associated with banking, finance, media, and law.
3. Register the company. After the business name has been approved, you must incorporate your business within 60 days.
Submit the application for incorporation along with the incorporation documents, such as the Memorandum and Articles of Incorporation, which are signed by the director or shareholders of the company. Pay the registration fee of S$300 to the Singapore Registrar of Companies.
Business registration can also be done through the Online Business Licensing Service or OBLS. This is advantageous for businesses, such as private schools, day care centers, and video companies, that need additional permits and licenses. The registration and application for such permits and licenses are done once through OBLS.
After the ACRA or Accounting and Corporate Regulatory Authority approves your registration, there are additional things you need to do. These include the appointment of a company secretary within 6 months of incorporation, the operation of the registered office for at least 3 hours on weekdays, the printing of the registration number on letterhead, invoices, receipts, etc., the opening of a company bank account and holding of the company’s first Annual General Meeting within 18 months of its incorporation.