Singapore is a thriving business hub in Asia, known for its stable political climate, pro-business policies, and robust economy. Many entrepreneurs and business owners worldwide want to set up their companies in Singapore. If you want to incorporate your company in Singapore, there are a few essential things to remember. This article will discuss some crucial tips for registering your company in Singapore.
- Define the structure of your business
Before incorporating your company, you must determine your business’s structure. Singapore recognizes several business structures, including sole proprietorship, partnership, limited liability partnership (LLP), and private limited company (PLC).
Most businesses in Singapore prefer the private limited company structure. It is a separate legal entity from its shareholders, and shareholders are not personally liable for the company’s debts and losses.
- Choose the right name for your company
The next step is to choose a name for your company. The name must not be identical to any existing businesses in Singapore and should not infringe on any trademarks or intellectual property rights.
Once you have chosen a name, you can check its availability on the Accounting and Corporate Regulatory Authority (ACRA) website. If the name is available, you can reserve it for 120 days by filing an online application with ACRA.
- Apply for a business license (if required)
After defining the structure of your business, the next step is determining whether your business requires a license in Singapore. Certain business activities require a permit. Contact the relevant government agencies to clarify whether you need a license and apply for it before registering your company. The application process takes several weeks, so factoring in the necessary time is essential.
- Prepare a registered business address
You need to have a registered business address in Singapore. It cannot be a PO Box and must be a physical address. You can use commercial or residential office addresses, but you must obtain the owner’s consent and provide proof of ownership or tenancy.
- Hire a permanent director for your company
When forming a corporation in Singapore, finding a local director is a crucial first step when starting a corporation in Singapore. Under Singapore’s Companies Act, at least one director must be a Singapore citizen, a Singapore permanent resident, or an Employment Pass holder. The director must also be at least 18 years old and not bankrupt.
Hiring a local director can be challenging, especially if you are new to the local business landscape. Consider engaging the services of a professional firm that specializes in company incorporation in Singapore. These firms can help you find a suitable regional director who meets the legal requirements and has relevant industry experience.
- Consider hiring a corporate secretary
Once you have incorporated your company in Singapore, you must appoint a corporate secretary within six months of registration. A corporate secretary ensures your company complies with all legal and regulatory requirements. This includes maintaining company records, preparing and filing annual returns, and organizing board meetings.
Hiring a corporate secretary can be beneficial, especially if you are unfamiliar with Singapore’s regulatory environment. A corporate secretary can provide expert advice on compliance matters and help you avoid costly mistakes.
When choosing a corporate secretary, look for someone with experience working with companies in your industry. They should also have a good understanding of Singapore’s corporate governance requirements and be able to communicate effectively with your board of directors.
Conclusion
Incorporating a company in Singapore can be straightforward if you follow the proper steps. Hiring a local director and corporate secretary ensures your company complies with all legal and regulatory requirements. These professionals can also provide valuable advice and support as you grow your business in Singapore.
