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.