Singapore Company Incorporation: Post Incorporation Compliance Requirements

The real game of statutory obligations starts right after the process of Singapore company incorporation. Although the process of registration was a smooth and hassle-free affair, the fulfillment of post-incorporation requirements could be a tricky and challenging feat to handle. To avoid any legal penalty or issue, you must be aware of each and every compliance issue you need to fulfill in the course of your entrepreneurial journey in Singapore.

What are the Post-Incorporation Requirements for a Singapore Company?

As stated by the law, a set of statutory requirements will need to be followed by the businesses throughout their existence in the Singapore jurisdiction. Since these requirements need to be met after Singapore company registration, these are also called as post-incorporation requirements.

Company Incorporation Singapore

Things to be done after Company Registration Singapore: 

Issuance of Incorporation Certificate: ACRA sends the soft-copy of incorporation certificate via email. You need to print the certificate and file it. The issue of hard-copy of the certificate is not mandatory in Singapore. However, you can purchase it by paying an amount of SGD 50. The request will require at least five working days to get processed. 

Buy Company Business Profile: One must purchase business profile after registration of the company. It comes in a PDF format file and is readily available for download within an hour of purchase. The business profile of Singapore company contains the company name, registration number, date of incorporation, principal business activities, registered address and particulars of its officers.

Memorandum and Article of Association: Businesses are open to design their own constitutions or also may choose to adopt by default. The set of the article is provided in the Fourth Schedule of the Singapore Companies Act. 

A Few Essentials You must Purchase or Recieve after Company Incorporation:

• Purchase share certificates for each shareholder.
• Company's Seal also called as common seal
• A Rubber Stamp for the company
• Business Cards
• Company's website (domain name registration) and email addresses
• Invoice and letterheads or any other official documents of the company must bear its UEN no.

Appointment of Company Secretary 

The appointment of a qualified company secretary within six months of incorporation is mandatory for every private limited company in Singapore. He/she must be an ordinary resident of Singapore. Having requisite knowledge of Singapore Companies Act and experience to handle the function of a corporate secretary are necessary. The position cannot be left vacant for more than the mentioned period (i.e. six months). 

Appointment of Auditor

An auditor must be appointed within three months of company incorporation unless your company is exempted from auditing.

Audit exemption is applicable for "Small Companies." You must fulfill any two of the following conditions:

• The total revenue of the company is not more than 10 million
• The total asset of the company does not exceed 10 million thresholds.
• The number of total employees of the company is not more than 50.

The Opening of Corporate Bank Account:

Ideally, a corporate bank account needs to be opened once the company has been incorporated. The authorized signatories and directors need to be physically present for the signing of forms and documents for opening the bank account in most of the banks in Singapore. However, an exception is there as some banks allow the applicant to open the account in an overseas bank in front of a notary public. 

Issue of Business Licenses and Permits

The businesses from few industry sectors like restaurants, travel agencies, educational institutes, import/export of goods and financial service, need to obtain business licenses or permits. They must apply for the license right after Singapore company registration. It is notable that a business is not allowed to operate until it obtains the license. Fortunately, it does not apply to all industries. 

Goods and Service Tax (GST) Registration

Singapore businesses whose projected annual turnover is more than S$1 million must register for GST (Goods and Service Tax). GST is also called as Value Added Tax (VAT) in many other jurisdictions. The current rate of GST is 7%. A GST registered business must charge the GST rate to its customers on the goods and services supplied, and remit the amount to the tax authority (IRAS). 

Don't Miss : Singapore Tax & Accounting Services – All You Need to Know

Customs Registration/Export-Import Permit

Customs registration is mandatory only if your business wish to indulge in import and export of goods. 

Annual filing/AGM/ Annual Return

Singapore incorporated companies are required to compile the unaudited/audited financial statements (whichever is applicable) in adherence with the Singapore Financial Reporting Standards. Convening Annual General Meeting once in every calendar year is mandatory. Filing Annual Returns with ACRA within 30 days of holding AGM is another compliance requirement that every company must fulfill. Businesses must file their tax return (corporate income tax /GST) with IRAS on an interval of specified period. 

The Bottom Line

Since Singapore authorities are strict about the laws and orders, we strongly recommend you to hire a professional firm before taking the plunge into Singapore company incorporation. These firms also assist the clients with post-incorporation requirements. The experts help you in keeping your business complaint-friendly. You will be at peace of mind as your compliance issues will be handled by expert professionals. Keep your worries at bay and focus on core business to increase the productivity.

Contact us:  
Visit: www.taxationservices.com.sg 
High Street Centre, 
#17-02, 1 North Bridge Road, 
Singapore – 179094  
Call : +65-6536 0036  
Email: info@taxationservices.com.sg

Why and How to Start the Journey of Company Registration Singapore?

Company registration Singapore has successfully become a popular choice for many established and potential entrepreneurs alike. The island country witnesses a massive influx of a pool of global talents every year. The majority of them intends to immigrate after incorporating a business over there. Nevertheless, a few questions are still lingering in the minds of a small section of entrepreneur aspirants. They often end up enquiring about why and how to start the journey of Singapore company registration.

This blog will address those questions and unveil every detail of incorporating a company in Singapore. 

Singapore Company Registration: Take a Glance

A private limited company, also called as a company, is an independent legal entity that can conduct business activities in Singapore. Due to the scalability and legal status a private limited company offer, many entrepreneurs prefer to opt for this form of business structure. With as little as one business owner, a company can be formed simply by filing an application with ACRA (Accounting & Corporate Regulatory Authority). The procedure can be done electronically using an online filing system of ACRA called BizFile+. At the time of filing the application, you must fulfill a few minimum requirements such as:

1) An approved Company Name

2) Appointment of at least one local director who is either a Singapore Citizen, Permanent Resident or holder of Employment Pass or EntrePass

3) The number of shareholders must range between one to fifty

4) One local registered address. It can be commercial or residential space

5) The minimum paid-up capital required is SGD1

6) The appointment of a company secretary within six months of company incorporation Singapore.

A set of documents also needs to be filed along with the application.

• A brief description of business activities
• A copy of identity card (for Singaporean)
• A copy of Passport, overseas residential address proof, bank reference letter (for a foreign entrepreneur)
• A copy of incorporation certificate and Memorandum & Article of Association (for a foreign entity)

Why Register a Singapore Company?

Company registration in Singapore is regulated by the Companies Act, Cap 50. Once you incorporate a company in the city-state, you must oblige to the rules and regulations mandated by the authorities. It is true that incorporation has its share of pitfalls in certain conditions. The increasing burden of compliance requirements is the most crucial one. However, there are many factors which make the private limited company an attractive vehicle for carrying out your business activities.

The following are the advantages of a private limited company:

• The shareholders of the company are not personally responsible for the loss and debt incurred by the business.
• The revenue generated by the company will be taxed at corporate tax rates (8.5%-17%). The newly incorporated company is eligible for enjoying zero tax rate on certain conditions.
• The life of a company is not limited to the existence of its shareholders or owners. Practically, a private limited can continue its operations until it achieves the objective, merges with another business, or goes bankrupt or is struck off.
• Ownership of a private limited company is transferable, and additional shareholders can be added at any point in time.
• It builds a credible image of the entity and hence the chances of securing loan or capital from the lender are high and promising.
• Since it is a perpetual business in nature, business operations remain undisturbed even if any changes in shareholders take place.

It makes sense to state that the advantages of incorporation outweigh the pitfalls. This is the reason why entrepreneurs never feel reluctant to face the compliance issues of the Singapore authorities. Moreover, the market is flooded with corporate firms such as taxationservices.com.sg which are ready to alleviate the pains of their clients. The charges of their services are minimal.

Getting Started

If you are a foreign national, you are advised to take the assistance of a professional incorporation specialist. The experts of the firm will assist you all along the way of company registration. To begin with, they will make you understand the laws of Singapore jurisdiction. They will prepare all the documents and file the application with ACRA on your behalf.

One of the first steps to be taken in the course of company registration Singapore is to choose two to three company names of your choice and check their availability on the website of ACRA. The approval of the name is subject to availability with ACRA. As per the law, the name should be unique, meaningful and decent. It takes hardly an hour to get the name approved.

The second step of company registration is to file the application to form the company along with the documents. Both of the steps should be done using BizFile+ portal of ACRA and SingPass ID is required to login on to the said portal. It is notable that only Singapore residents and pass holders can own a SingPass ID. Therefore, foreigners must hire a locally-based incorporation firm to fulfill the requirements.

Once your application is approved, you will receive mail from ACRA that comprises the company registration number and incorporation certificate. The entire process takes hardly 1 to 3 days to accomplish.

After incorporation of your business, make sure to follow the rules and regulations of ACRA. So, you must take the advice of experts before taking any action. Singapore company registration is a perfect way to embark on your entrepreneurial journey and cherish the experience of the lifetime.