The incorporation of any type of company is easy, quick, and free from red-tape in Singapore. Just like any developing country, Singapore has various regulations for the company incorporation Singapore. To register a new company there, one must comply with the registration process. However, Singapore is continuously graded as one of the perfect locations to operate businesses. And this blog will explain the illegal steps to register a new company there. It further offers a self-registration process but only limited to countrymen.
One of the common means for company incorporation is, to begin with, a private limited liability company in Singapore. A limited company is an individual legal entity that offers security to shareholders from debts regardless of their capital. The rules for company registration are decided in the Singapore Companies Act. This form of business set-up will offer the most beneficiary tax exemption. Ahead of company incorporation in Singapore, foreign investors need to abide by the following-
- Company Name: One of the vital factors is the company’s name, which needs approval before the company registration process in Singapore.
- Shareholders: A private limited company should have at least one and a maximum of fifty shareholders. The shareholders can be any entity, individual, local, or foreign investors as well. If required, you can even transfer or issue shares to new shareholders after company formation. The company can also avail of 100% foreign ownership.
- Directors: The company must have at least one local director in Singapore. This individual can be a permanent resident or a person with a dependant or employment pass holder. However, foreigners are not allowed to be the corporate director of the company. You can appoint many directors, both foreign and locals, for company incorporation Singapore.
- Registration Address: The company should have a local registered address for company formation in Singapore. The location can be commercial or residential, where the company will maintain all of its statutory documents. However, the location cannot be a post-office box. But the homeowners are permitted to conduct small-scale businesses in their residential location.
- Company Secretary: A private limited company must recruit a certified company secretary within six months of company registration. A sole director or shareholders cannot take over the position but the person should be a resident of Singapore.
- Share Capital: The minimum share capital for private limited company registration in Singapore is S$1. A company can also increase its paid-up capital at any time after company formation. In Singapore, the companies hardly use authorized capital. So, it can be preference shares, ordinary shares, or other shares.
- Taxation: The company didn’t require to pay off capital gains taxes or dividends in Singapore. Here the private limited companies can enjoy best tax exemptions across the globe. The companies need to pay not more than 8.5% tax on their first annual profits of S$300000, and 17% tax thereafter.
The three common business types allowed in Singapore are limited liability partnership, sole proprietorship, and private limited company.
Documents Required for Company Registration in Singapore
The company incorporation Singapore will need the following data to submit-
- Company Name
- Shareholders Particulars
- Brief Description of Business Operations
- Director Particulars
- Registration Address of Company
- Particulars of Company Secretary
- Memorandum and Articles of Association (MAA)
Hence, the above-mentioned procedures will guide to easily start a private limited liability company in Singapore.