Singapore is a highly attractive destination for businesses looking to expand their operations. The city-state boasts a stable political environment, a highly skilled workforce, and a business-friendly regulatory framework. In addition, Singapore’s strategic location in Southeast Asia makes it an ideal hub for companies looking to access the wider Asia-Pacific region.
One of the key benefits of doing business in the country is the ease of setting up and running a firm. This, combined with the country’s strong work ethic and culture of innovation, makes Singapore an ideal location for businesses looking to tap into the region’s talent pool. Keep reading to learn more about doing and registering a company in Singapore.
Step-by-step guide
Here are the primary steps to file a company in the nation:
Choose a corporate structure
When registering a company in Singapore, it is important to choose the right corporate structure. The most common structures are sole proprietorship, partnership, and private limited firm. Each system has its benefits and drawbacks, so it is critical to carefully contemplate which one is reasonable for your enterprise.
Sole Ownership
The sole proprietorship is the easiest and most common corporate format. This structure is best suited for small firms with low risk and low start-up costs.
Partnership
The partnership is similar to a sole proprietorship, but with two or more owners. This system is best suited for businesses with multiple owners who share the same vision and goals.
Private limited company
This firm is owned by shareholders and managed by directors. This structure offers limited liability, which means that the shareholders are only responsible for the amount of capital they have invested. This structure is best suited for businesses with high risk and high start-up costs.
Choose a corporate name
When registering a company in Singapore, choosing a name is a crucial step. The name must be unique and not already registered with the authorities. It is advisable to conduct a thorough search to ensure that the name is available.
Register the name
Once a suitable name is chosen, it can be registered online through the ACRA website or via a registered filing agent. For this purpose, the applicant must provide the proposed name, corporate activities, and details of the firm’s directors and shareholders. The registration fee is SGD 15 and the process can be completed within 15 minutes. Upon successful registration, the applicant will receive a confirmation email from ACRA.
Prepare the necessary documents
To file a company in Singapore, several important documents must be submitted. Such as:
Business name
The company must provide a copy of its proposed corporate name and a description of the company activities it will undertake. This information will be used to ensure that the proposed business name is not already in use and that the business activities are in line with the company’s intended operations.
Details of directors
The firm must provide details of its directors and shareholders, including their names, addresses, and identification documents. This data is crucial to ensure that the company is being run by individuals who are fit and proper to do so and that the shareholders are the rightful owners of the firm.
Office address
The company must provide its proposed registered office address and the details of its company secretary. The registered office address must be a physical address in the country where official documents can be served, and the company secretary must be a resident of the nation.
Obtain the necessary licenses
To conduct trade, it is mandatory to obtain a license from the relevant authorities. To obtain a license for company registration, the first step is to file with the investment authority. This can be done online or in person and requires the submission of various documents, including a corporate plan and financial statements. Once the application is approved, the license can be obtained and the firm can begin operations.
