Singapore is highly renowned for its friendly business environment, thus making it the best place for entrepreneurs who want to start their own company. The process of registering a company in Singapore is easy and can be done quickly if you follow the right procedure. In this comprehensive guide, we will take you through the process of registering a company in 2024 in Singapore so that you have all the current information which is necessary to begin.
Why Register a Company in Singapore?
However, before discussing how to register your company, understand why business owners find Singapore attractive.
- Strategic Location: Being located strategically in South East Asia makes Singapore a gateway into major markets such as China, India and other ASEAN countries.
- Business-Friendly Policies: Various grants and incentives are available from the government of Singapore that encourages businesses growth.
- Robust Economy: Amongst leading world financial centers with a stable economy and high GDP per capita is Singapore.
- Low Corporate Tax Rates: With several tax breaks as well as exemptions for startups; Singapore’s corporate taxation stands at 17 % giving them competitive advantage over other countries.
Types of Businesses in Singapore
Before you start, choose the kind of business you want. Here are the common kinds:
- Private Limited Company (Pte Ltd): Common for biz owners. Gives safety and can have up to 50 owners.
- Sole Proprietorship: For small biz by one person. Simple to start but no safety from personal debt.
- Partnership: Involves two or more sharing profits and debt. Can be general or limited.
- Branch Office: A part of a foreign company in Singapore. Not separate legally and debts are of the main company.
- Representative Office: For foreign firms to do research. Can't make money.
Step-by-Step Guide to Singapore Company Registration
Step 1: Choosing Your Business Structure
The primary process to start a company in Singapore is the selection of a business structure and the most common ones are:
- Private Limited Company (Pte Ltd): This one is usually preferred due to its limited liability coverage and tax benefits.
- Sole Proprietorship: It’s suitable for small one person businesses, but it does not protect against liabilities.
- Partnership: There are three types namely General Partnership, Limited Partnership, and Limited Liability Partnership. Each is different from the others concerning various liability protections as well as regulatory requirements.
For many entrepreneurs, Private limited company (pte ltd) is a better choice because of its flexibility, tax benefits as well as separate legal entity.
Step 2: Reserving Your Company Name
After deciding on the business structure, you should go ahead and select your company’s name then reserve it. The chosen name must:
- Be Unique: Not be too similar nor be identical to an existing company name.
- Mean something: It should portray what line of business you do in it.
- Be Lawful: Vulgar or offensive words should not be part of it.
To check if your desired company name has already been taken up by another business, there’s an online tool that can help you with that which has been provided by ACRA (Accounting and Corporate Regulatory Authority). Once you find an available name, you can reserve it for 120 days by paying a small fee of SGD 15.
Step 3: Prepare the Necessary Documents
To make your company registration, several documents have to be made and submitted. Here are some of them:
- Company Constitution: It is a document that gives guidelines on how the business should be run. You can either use the standard template that is provided by ACRA or draft your own.
- Signed Consent to Act as a Director and Secretary: A consent form has to be signed by every director and company secretary.
- Identification and Address Proof: All directors, shareholders and company secretary.
Step 4: Register Your Company with ACRA
After you have prepared these documents, you can register your company with ACRA through BizFile+ portal. Here are the details you must provide:
- Company Name: Confirm it’s the same as your reservation.
- Business Activities: These specify primary plus subordinate activities done using Singapore Standard Industrial Classification (SSIC) codes.
- Registered Office Address: This indicates a location in Singapore where there are no P.O. Boxes.
- Shareholders’ Details: Details about the names, identity numbers, addresses etc., of shareowners of this corporation
- Directors’ Details: At least one director must be a citizen or permanent resident of Singapore.
- Company Secretary’s Details: The appointment of company secretary must take place within six months from incorporation date and he/she must also be a resident in Singapore.
Step 5: Pay the Registration Fees
It is relatively cheap to register a company in Singapore. The payment for these charges can be made online through the BizFile+ portal. Typically, it takes a period of between one and two business days for registration upon payment.
Step 6: Post-Registration Requirements
After successfully registering your company, there are several post-registration requirements to fulfill:
- Issue Share Certificates: All shareholders must receive their share certificates showing that they own shares.
- Prepare the Company Seal: Many companies choose to use a corporate seal when preparing their official documents although it is not compulsory.
- Open a Corporate Bank Account: A corporate bank account will be required by you in order to manage finances within your enterprise since Singapore has numerous local and international banks options.
- Register for Goods and Services Tax (GST): If your company’s annual turnover exceeds SGD 1 million, you must register for GST.
- Comply with Annual Filing Requirements: This includes holding an Annual General Meeting (AGM) and filing the Annual Return with ACRA.
Step 7: Ongoing Compliance
As a business, you need to stay compliant with the rules and regulations. A few that are important to understand include:
- Filing Annual Returns: Annual Returns must be filed with ACRA within 7 months of financial year end.
- Financial Statements: These include preparing and filing its financial statements in accordance with Singapore Financial Reporting Standards (SFRS) except with regard to the Return of Government Handbook.
- Tax Filing: File the company's annual income tax return with the Inland Revenue Authority of Singapore (IRAS) Return for the company by 30th November for paper return and December 15 for e-filings.
Step 8: Post-Incorporation Requirements
Once you start the company, there are more things you need to do:
- Open a company bank account: You need to open a bank account in the company’s name. Big banks in Singapore like DBS, OCBC, and UOB offer business banking services.
- Get business licenses and permits: Depending on what your business does, you may need special licenses or permits. For example, if you start a restaurant, you need food and drink licenses.
- Register for GST: If your company makes more than SGD 1 million a year, you must register for Goods and Services Tax (GST). Even if you don't make that much, you can register on your own.
- Get work visas: If you want to hire foreign workers, you need to get the right work visas, like Employment Passes or S Passes.
Wrapping Up
If you follow the right steps and meet the necessary requirements, this is a simple process to register a company in Singapore in 2024. Do not forget to fulfill all post-registration formalities and file the relevant documents on time so that your company can continue with its operations and survive in business.
Being in a geographically perfect position, highly suitable business conditions, one of the strongest economies of the world, Singapore becomes heaven for businesses. Singapore offers a wealth of opportunities for local or overseas business to tap into and enables you to expand and develop your business.
