Incorporating Business in Singapore

Incorporating Business in Singapore

Guide to Incorporating Business in Singapore

You only need to depend on a couple of natural resources because the economic success of Singapore contributes to this. They have extensive trade networks, and their government initiatives have made it very attractive for anyone to set up a business in Singapore, whether they are local, multi-national corporations, or young entrepreneurs.

Many investors are convinced that incorporating business in Singapore is good because it is one of the top economies in the world. The ease of doing in this country is impressive, and you will have the right knowledge when you read this.

 

What Do You Need to Know?

  • Have your company name approved before the registration.
  • It would help if you appointed a resident director. You can also nominate any number of resident or non-resident directors. They must not be younger than 18 years old, not bankrupt, and they do not have past malpractice charges.
  • Your shareholders can be anywhere between 1 to 50, whether they are directors or not. Shareholders can be local and non-local individuals or companies. You can have 100% non-shareholding in Singapore. After incorporating business in Singapore, the shares can be issued or transferred freely anytime.
  • It would be best if you appointed a company secretary who is a qualified resident within six months of registering your company. The shareholders/ sole directors cannot take the role of a company secretary.
  • It is a must to have a local and physical address in Singapore as the company’s registered address. Your company will pay less than 9% of its first $300,000 in annual profits, and then a flat rate of 17% after that. There is no need to pay dividend or capital gains taxes in Singapore.
  • You also need company incorporation services in Singapore to guide you through everything.

 

Share Capital

Your company needs at least $1 capital when incorporating business in Singapore. You can increase the share capital any time by injecting additional money as time goes by.

 

Constitution Documents

The constitution documents are about the company’s memorandum and articles of association (“M&AA”), that governs how companies should be operated. Business owners must be cautious in signing and giving approval of the M&AA because it leads to unintended complications for companies in the future.

Other kinds of constitution documents that are unique to a business might be part of the shareholders’ agreement or a share scheme of an employee. In general, the business owners need legal advice or opinion of a professional before signing legal documents.

 

Singpass

It would help if you had a Singpass. It is an electronic identity provided to all citizens of Singapore, while qualifying FINS and foreigners are also allowed to apply for it.

If you have a Singpass, an individual can apply for incorporation to ACRA through an electronic portal.

There will be administrative steps provided, which is prudent for companies to look for a professional corporate provider to ask for help. They can highlight areas that need to be fixed, which might be unique to your business. They will also assist you in liaising your business with government bodies in case of issues that need a resolution.

 

Supporting Documents Needed for Incorporation

These documents should be available right away before you start the process.

For the individual shareholders:

  1. Passport copy
  2. NRIC or Residency card
  3. Proof of residential address
  4. A short professional background which could be a curriculum vitae (CV) link to their profile or resume.

For corporate shareholders:

  1. Certificate of Registration from the Registrar of the jurisdiction where the company was registered.
  2. Company Extract provided by the Company Registrar of a jurisdiction where you registered your company which contains:
  • Company name, registration number, and address
  • Paid-up capital, and the particulars of Shareholders and Directors
  • Business activities that the company engages in
  1. An Authorized Person Resolution from the shareholding company, which has the following:
  • Authorization to be a shareholder of the company
  • Authorized person appointment to sign the formation documents
  1. Ownership structure chart which identifies the Ultimate Beneficial Owners (UBO) of the shareholding company. The key UBOs identification documents are needed for KYC.

Incorporating Business in Singapore

Business Ideas in Singapore

The international freight companies are attracted to Singapore because it is strategically located, and the transport system is indispensable.

The efforts of Singapore to modernize the infrastructure is resulting in a smooth and fast link to different roads and motorways across Singapore. If you are thinking of the transportation business in Singapore, you will be confident to know that the government gives full support to this, together with the Land Transportation Authority for the operations.

You can also venture into the parcel delivery and logistics service to be part of the freight forwarding industry. In this kind of business, you can ship, store, document, and track delivered parcels.

Event Planning

The first thing you must do when you have a business like this; you must visit every event space that has the potential to host an event. You can contact a marketing manager to visit each site and gather insight into what is available in each of them. Curate the database that provides you with specific information on each venue about its particular features – the capacity of the place, if there is a need to plan for rental chairs, and a lot more. When you are working with your client, make sure to understand their main requirements, and have three or four locations that meet the necessary criteria.

Flea Market

During weekends, people love to go through people’s old items, to look for things they might want. When you have this kind of business, make sure to change the layout often and provide new details. People must be enticed to come back often to see what new items are being offered for sale.

 

If you need help with incorporating business in Singapore, you can contact us to help you with the process.



Posted on June 18, 2020 by VA2 in Blog