When you are considering the registration and relocation of your company to Singapore, it is crucial to bear in mind that almost every Singapore companies are indexed as “private limited liability companies” which is also regarded as “private limited companies”. A private limited company in Singapore is a parted legal entity and the shareholders are not at all responsible for the business debts ahead of the amount of share capital they contributed therefore, this is referred to as limited liability. In accordance with the Singapore Companies Act, any individual above the age of 18 whether he or she is a foreign or local resident can register themselves with a Singapore company.
An appropriately structured private limited company in Singapore is a tax efficient corporate body and therefore, this kind is the most common type of business entity indexed in Singapore.
This guide will give you a detailed overview of the company registration requirements, set up process and timeline for registering your company in Singapore. Like the other jurisdiction, Singapore has set of ongoing and initial regulatory compliance necessities for getting started with and operating a business. Therefore, both the foreign and local entrepreneurs are recommended to fit into place the services of a proficient firm for this reason.
BEFORE SINGAPORE COMPANY REGISTRATION – WHAT YOU SHOULD BE AWARE OF
Key Details on Company Formation:
Company Name – The name of the company should be established before incorporation of the Singapore Company set up.
Directors – A minimum of one resident director (an individual is considered as a Singapore Citizen, or a Singaporean Permanent Resident or an individual who has been issued with an EntrePass, Dependent Pass or Employment Pass) is compulsory. There are no boundaries on the number of additional foreign and local directors that a Singapore Company can employ. Directors should be minimum 18 years of age and should not be condemned for any kind of misconduct or insolvent in the past years. There is complete no necessity for the director to be shareholders and therefore the non-shareholders can also be selected as directors.
Shareholders – A private limited company in Singapore can hold a minimum of one and maximum of fifty shareholders. Shareholders and the directors could be the same or different person. The shareholder can turn out to be a person or another legal entity for instance, another trust or company. 100 percent foreign or local shareholding is permitted. New shares can be provided or the existing shares can be given to another person anytime after the Singapore Company has passed the incorporation system.
Company Secretary – As stated in the Singapore Companies Act of Section 171, each of the company should hire a qualified company secretary in a time period of six months of its incorporation. It should be noted that if it’s a shareholder or sole director, the same individual cannot take action as the company secretary. The company secretary should be a natural individual who is a normal inhabitant in Singapore.
Paid-up Capital – The bare minimum paid-up capital for the registering a business in the Singapore market is S$1. Paid-up capital is also regarded as share capital which can be raised at whatever time after you get the incorporation of the company. There is absolute no concept of Authorized Capital that is levied for Singapore companies.
Registered Address – If you want to get registered with a Singapore company, you need to give a local Singapore address seeing that as the registered address of the business. The registered address should be a physical address which can be a commercial address or a residential address.
Taxation – Singapore registered companies get huge benefit from attractive tax exemptions along with incentives. Your company pays under 9 percent for the first S$300,000 annual profits and flat 17 percent after that. There are no dividend taxes or capital gains on the Singapore companies. Outstanding business reputation along with excellent tax benefits in Singapore are the basic reasons why the entrepreneurs from all over the world prefer to set up a business in Singapore.
So, if you are planning to set up business in Singapore or planning to go for Singapore Business Formation you can refer to this guide.
Like the other jurisdiction, Singapore has set of ongoing and initial regulatory compliance necessities for getting started with and operating a business. Therefore, both the foreign and local entrepreneurs are recommended to fit into place the services of a proficient firm for Singapore Business Formation.
Steve Carry is a freelance writer who writes article related to Singapore Business Formation, Singapore Business Setup, employment pass Singapore and many more.