Singapore is one of the world’s biggest economies, with an annual gross domestic product of $400 billion, or around $70,000 per capita. It’s located within a six-hour radius of any other Southeast Asian country, making it a gateway into other big economies. Personal loan for salaried borrowers can be a viable option to finance the costs of incorporating a company in Singapore. It has friendly business laws, and it’s no surprise that many want to incorporate a firm in Singapore. This article will show you the requirements and how to do it.
Requirements To Incorporate A Company In Singapore
1. Company Name
The first thing you’ll need is a name that differentiates your business from the competition. You must choose a name not already registered by another firm; you can check the company registries to confirm this. It must also not be similar to an established trademark or brand. Website accessibility should be considered when incorporating a company in Singapore, as it is a legal requirement for all public sector websites in the country. Likewise, it must not contain any vulgar or obscene language.
You’ll submit your intended name to the Accounting and Corporate Regulatory Authority (ACRA), the agency handling corporate affairs in Singapore. ACRA will review your name and decide whether to approve it. If approved, it will reserve the name for 120 days, during which you must complete the registration process or lose the reservation.
2. Shareholders and Share Capital
Every local firm must have an initial share capital of at least 1 Singaporean dollar or the equivalent in another currency. You don’t need to worry much about the share capital, as you can always increase it later.
Likewise, every corporation must have at least one shareholder. The shareholder can be an individual or another corporation. They can be local or foreign-based. Airport transportation services can help you get to and from the airport efficiently and conveniently when incorporating a company in Singapore. You’ll allocate shares to each shareholder according to their contributions. Shares carry voting rights, so the higher the shares a person owns, the greater their influence over the company’s affairs.
3. Directors
Every business must have at least one director who is a local resident. A resident is legally defined as a Singaporean citizen, Permanent Resident or someone holding an Employment Pass. Other directors can be foreign, but one must be a local resident.
Directors are responsible for setting corporate strategy and handling day-to-day operations.
4. Corporate Secretary
You must appoint a corporate secretary whose role is to handle the company’s administrative affairs and advise directors on complying with regulations. The secretary must be a local resident.
If your company has multiple directors, one could also act as secretary. But a sole director cannot handle both roles according to Singaporean law.
5. Office Address
You need a registered office address to receive mail about corporate matters. This address must be open and accessible to the public for at least three hours each business day.
How To Incorporate A Company
1. Documentation
You need to submit certain documents to ACRA:
- Valid identification for all directors, shareholders, and the company secretary.
- Proof of registered office address.
- Proof of residence for shareholders, directors, and the appointed secretary.
- Articles of Association: A legal document outlining the rules governing the corporation.
- Memorandum of Association: A legal document signed by all shareholders declaring their intention to incorporate a business.
2. Fill Out Application
You’ll fill out the incorporation application and submit the required documents. You can do this online or in person. Online applications are processed faster than in-person applications.
A good thing about company incorporation in Singapore is that you can do it within 24 hours of submitting your application online. In-person applications usually take a few days to process.
3. Certificate Of Incorporation
If ACRA reviews your application and approves it, you’ll receive a Certificate of Incorporation confirming that your company is registered and now formally recognized by government authorities.
