Setting up a Company in Singapore

Want to register a company in Singapore?

This guide contains key facts on opening a company and doing business in Singapore – the requirements, procedures, and timelines.

Check out the Easy to Use Incorporation Service at Sleek

Before Registering a Business in Singapore

Choosing the Right Business Structure

Choosing the right business structure in Singapore is crucial as it impacts liability, taxation, and regulatory obligations. It determines how the business is governed, its legal status, and the extent of personal liability. The right structure ensures compliance, minimizes risks, and maximizes operational efficiency, influencing the company’s long-term success.

Private Limited Companies (Pte Ltd)

A private limited company in Singapore, often denoted as “Pte Ltd,” is a separate legal entity with limited liability. It can have up to 50 shareholders and offers benefits like corporate tax exemptions and access to various government schemes and incentives for business growth. Shareholders can be other companies, individuals, or a mixture of both.

Sole Proprietorships (SP)

This type of business is straightforward but carries more risk for its owner since the owner is personally liable for the company. The owner and the business are considered as one, meaning the owner's personal assets are not protected from the company's liabilities. Foreigners with a Dependent's Pass, Overseas Networks & Expertise (ONE) Pass, or Letter of Consent can register a sole proprietorship.

Limited Liability Partnerships (LLP)

An LLP is owned by at least two partners, individuals or corporate bodies, and is a separate legal entity from its partners. It is commonly used by professionals such as attorneys and architects. The profits are taxed at personal income tax rates if the partner is an individual and at corporate tax rates if the partner is a corporate body. LLPs are not eligible for government loans and require at least two partners at all times.

What Do You Need to Register a Company in Singapore?

Essential Requirements

1. Company Name: Ensure your proposed name is approved by the Accounting and Corporate Regulatory Authority (ACRA).
2. Directors: At least one director must be a locally resident individual (Singapore citizen, Permanent Resident, or holder of an EntrePass visa).
3. Shareholders: Between 1 to 50 shareholders. Singapore permits 100% foreign ownership.
4. Paid-up Capital: Minimum of S$1.
5. Registered Address: A physical address in Singapore (no P.O. Boxes).
6. Company Secretary: Must be appointed within six months of incorporation.
7. Auditor: Required unless the company qualifies for an audit exemption (total annual revenue > $10m, total assets > $10m, or more than 50 employees).

Additional Considerations

• Business Activity Classification: Select an SSIC code to describe your business activity.
• Licenses & Permits: Some activities require specific licenses before starting.
• Insurance: Consider insurances for business protection.
• Tax Incentives: New companies may be eligible for tax incentives and exemptions.

Company Registration Process in Singapore

Step-by-Step Guide

1. Reserving the Company Name: Ensure the name is unique and not vulgar, obscene, or already reserved. Approved names are held for 60 days.
2. Registering the Company: Submit the necessary documents and receive approval from ACRA. The process can be completed in a day if all documents are ready and signed.

Cost

Incorporating a company typically costs S$275, excluding the ACRA fee of S$375.

Timeline

The timeline can vary from a few hours to days, depending on the speed of document submission and approval by ACRA.

Company Registration for Foreigners

Requirements

1. At least one shareholder.
2. At least $1 paid-up capital.
3. A local company secretary.
4. A Singapore-based director.
5. A registered address in Singapore.

Options for Foreigners

1. Employment Pass (EP): Apply for an EP after incorporating the company.
2. Entrepreneur Pass (EntrePass): For venture-backed or innovative technology businesses.
3. Without Relocation: Incorporate by appointing a local resident director.

Post Company Registration

What Happens Next?

• Certificate of Incorporation: An email confirmation from ACRA.
• Business Profile (Bizfile): The company's identity card.
• Corporate Bank Account: Necessary documents include a Corporate Account Opening Form, Directors’ Resolution, and proof of identity and address for directors and signatories.
• Business Licenses: Apply if required for your business activities.
• Goods and Services Tax (GST): Register if annual turnover exceeds S$1 million.

Ongoing Compliance

• Annual Filing: Tax returns, annual general meetings, and maintaining accounting records.

Why Incorporate in Singapore?

Advantages

• Tax Benefits: Favorable tax rates, exemptions, and incentives.
• International Reputation: Stable jurisdiction with a robust financial infrastructure.
• Government Policies: Pro-innovation policies and grants.
• Prime Location: An international hub with easy access to key markets.
• Talent Pool: Highly educated, English-speaking workforce.
• Telecommunication Infrastructure: Reliable and extensive.
• Anti-Corruption: Strong policies against corruption.

Ready to Incorporate?

Setting up a company in Singapore is straightforward and can be made even easier with professional help. Use this service to ensure a fast, affordable and seamless incorporation process.

Affiliate Disclaimer: This post contains affiliate links. If you use these links to register a company, we may earn a commission at no extra cost to you. Thank you for your support.