Company Incorporation Singapore is Red Tape Free & Leads to Tax Benefits

Last modified: March 16, 2016

company-incorporation-singaporeThe entrepreneurs, especially foreigners, egging themselves on for a new Singapore company registration, find a reliable assistant in Singapore incorporation services provider. The professionals at these corporate services provider firms know the ins and outs of the process involved and are a great help. Start-up entrepreneurs should know that company incorporation Singapore is a two procedure act and unlike in other jurisdictions, takes only 1 – 2 days.

Both, locals as well as foreigners who do not know how to register a company in Singapore, leans on trusted incorporation agents for the professional assistance at the time of company incorporation. They are with you, right from the giving tips for enhancing your business plan to the opening of a corporate bank account for your newly registered Singapore company.

Minimum Requirements of an Instant Singapore Company Incorporation

According to the directives issued by Company Registrar of Singapore i.e. Accounting and Corporate Regulatory Authority (ACRA), every Singapore company owner must provide:

  1. At least one local director; a Singapore citizen, a Singapore permanent resident or a foreigner having an EntrePass, Employment Pass or a Dependent’s Pass.
  2. At least one shareholder. The shareholder can be a local, foreigner or corporate entity.
  3. At least one company secretary.
  4. The minimum paid-up capital of S$1 (S$50,000 for Entrepass holders).
  5. A desirable name for the proposed company, to be submitted to the ACRA for approval.
  6. A registered business address for its office.
  7. A copy of the Memorandum & Articles of Association.

Prerequisites to Incorporate a Singapore Company

Name for the Proposed Company

An entrepreneur, at the time of company incorporation Singapore, must come up with a list of names for it, log-in on the BizFile+, a web portal maintained by ACRA and check, which one is available. He, then, needs to register it with the ACRA by paying a small amount of fee.

Business Plan

The entrepreneur should also submit the business plan that their company intends to implement over the next 3 years. It is an important step, as it makes clear the commitment of the company towards its Singapore operation. Professionals from the corporate services extend their expertise and industry-wide knowledge to the start-up entrepreneur in charting the most viable business plan.

Paid-up Share Capital

The minimum amount of paid-up capital required to set up a company in Singapore is S$1. After the incorporation, however, the shares are issued only after the transfer of further capital to the bank account. The capital of S$1 is sufficient for both, local as well as foreign entrepreneurs with Employment Pass.

However, this amount is not sufficient for the foreign entrepreneurs having or intending to get an EntrePass. They must arrange S$50,000 as the minimum paid-up capital and produce a bank statement showing the latest balance in their bank accounts.

Registered Address of the Company

Each Singapore company must supply its office’s registered address to ACRA. It is useful for the investors. They can visit the place and get their queries solved. This is also the place where important company documents are held and the ACRA officials visit to inspect Company Register and other documents.

Details of the Stakeholders of the Company

  • ACRA also demands documents giving details about the stakeholders of the company. These include information about the company’s directors and shareholders; locals and/or foreign individuals and corporate entities.
  • Singapore residents must supply a copy of their Singapore identity card.
  • Nonresidents must forward a colored copy of their passports, overseas residential address proof, a reference letter from their bank, personal and business profile, etc.
  • For corporate shareholders, it is a must to supply a copy their Certificate of Incorporation and Memorandum & Articles of Association and other relevant documents.

Documents Required for a Singapore Company Incorporation

  • Full name of the applicant (as in passport)
  • Local correspondence address
  • Overseas address (if any)
  • Nationality
  • Identity card number and expiry date
  • Passport number and expiry date
  • Personal contacts (mobile number, home and office number, fax, and email address)
  • Number of shares issued to each shareholder

Timeline and Procedure to Incorporate a Company in Singapore

If the application to open a company in Singapore needs no special review by the ministries, then, it takes only 1 – 2 days to register a company in Singapore. The entrepreneur needs to complete, as mentioned earlier, only 2 procedures.

Step 1: Registering a Company Name with the ACRA

A new company name must satisfy the Registrar of Companies. This individual has the right to suggest a change in the name if it is inappropriate or reject the application outright. For the purpose of identification, Singapore authorities want the Singapore registered companies to have unique names.

If the submitted company name contains terms like Bank, Law, Media, Finance, etc, then, these applications are thoroughly investigated. The approval is delayed. Normally, one can expect to hear from the ACRA about its fate within 2 hours of the submission of the application.

Step 2: Register Your Company

Submit your application to the Company Registrar. An application well supported by the duly signed documents by the stakeholders of the company has great chances of getting approved. Generally, it takes only a few hours, unless, it requires a review by one of the ministry.

In fact, company registration Singapore does not require your physical presence. By supplying the incorporation firms with the required, duly signed documents, an entrepreneur, local as well as foreigner, can rest assured that these firms will do the rest.

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