Singapore is a prime destination for entrepreneurs due to its business-friendly regulations, strategic location, and robust infrastructure. Whether you are a local or a foreign investor, understanding how to set up a company in Singapore is essential for a smooth registration process. This guide outlines the key steps involved, from selecting a business structure to ensuring compliance with local regulations.
Choosing the Right Business Structure
Before registering a company, it is crucial to determine the most suitable business entity. The most common structure in Singapore is a Private Limited Company (Pte Ltd) due to its flexibility, limited liability protection, and tax benefits. Other options include a Sole Proprietorship, which is best for small-scale businesses, and a Limited Liability Partnership (LLP), which suits professional firms.
A Private Limited Company offers credibility and ease of securing investments, making it the preferred choice for many entrepreneurs. Regardless of the structure chosen, all businesses must comply with the regulations set by the Accounting and Corporate Regulatory Authority (ACRA).
Registering Your Company with ACRA
The company registration process in Singapore is streamlined and can be completed online through ACRA’s BizFile+ portal. The first step is to reserve a unique business name, which must be approved by ACRA before incorporation can proceed. Once the name is secured, key personnel must be appointed, including at least one director who is a Singapore resident. Companies are also required to appoint a corporate secretary within six months of incorporation, and many businesses opt for Singapore company secretarial services to ensure compliance with statutory requirements.
After appointing key personnel, the company must determine its shareholding structure and paid-up capital. A Private Limited Company must have at least one shareholder, and the minimum paid-up capital required is S$1. Additionally, a registered office address must be provided, as all companies must have a local business address where official documents can be sent. The final step involves preparing the required documents, including the company constitution, details of directors and shareholders, and a description of business activities. Once all information and documents are submitted, the company can be incorporated within a few hours if there are no complications.
Complying with Statutory and Financial Obligations
After incorporation, companies must fulfil several regulatory obligations. Hiring a Singapore accounting service can help businesses manage financial records, taxation, and statutory compliance efficiently. One key requirement is the appointment of a corporate secretary, as mandated by the Companies Act. This ensures that proper company records are maintained and regulatory compliance is met.
Companies are also required to maintain proper financial records and submit annual financial statements to ACRA and the Inland Revenue Authority of Singapore (IRAS). Engaging accounting services in Singapore ensures that taxation and regulatory obligations are met in a timely manner. Furthermore, businesses must file their annual returns with ACRA to keep their records updated. Singapore’s corporate tax rate is 17%, and newly incorporated companies enjoy tax exemptions on their first S$200,000 of chargeable income for the first three years. Seeking professional assistance from accounting and company secretarial services allows businesses to meet these statutory requirements without hassle.
Opening a Corporate Bank Account
A corporate bank account is essential for managing business finances. Most banks in Singapore require the certificate of incorporation, company constitution, identification and address proof of directors and authorised signatories, and an ACRA business profile. Depending on the bank, additional requirements may apply. Business owners can choose from various local and international banks that offer corporate banking solutions tailored to different business needs.
Applying for Business Licences and Permits
Certain business activities require additional licences or permits before operations can commence. Industries such as finance, healthcare, and food & beverage must obtain approvals from relevant authorities. The GoBusiness licensing portal provides information on sector-specific licensing requirements, making it easier for business owners to determine what permits are necessary.
Hiring Employees and CPF Contributions
If a company intends to hire employees, it must comply with Singapore’s employment regulations, which include registering for the Central Provident Fund (CPF) and ensuring fair employment practices. Employers are required to contribute to their employees’ CPF accounts based on salary levels. Adhering to these regulations is crucial for maintaining compliance and fostering a positive work environment.
Key Takeaway
Setting up a company in Singapore is a straightforward process, but it requires careful planning and compliance with regulatory requirements. From selecting the right business structure to fulfilling statutory obligations, each step is crucial for ensuring long-term business success. Engaging professional Singapore company secretarial services and accounting services in Singapore can help businesses stay compliant and focus on growth.Â
Contact Accountancy Hub today and take the first step towards company incorporation.