COMPANY REGISTRATION PROCESS IN SINGAPORE

Introduction:- 

Singapore is one of the best place to start a company if you want to expand your worldwide reach. Company registration is necessary for the owner of the company. Forming a company in Singapore is simple and inexpensive. The Singapore Companies Act stipulates that any person who is 18 years or older can simply register a company in Singapore. The registration of the company as per these legal terms provides an efficient tax structure.

In Singapore, all companies must be registered with the Accounting and Corporate Regulatory Authority (ACRA) and comply with the Companies Act.  

Minimum requirements to Register a Company in Singapore -

Company Name :- Before the Singapore Company can be incorporated, the company name must be approved byAccounting and Corporate Regulatory Authority.

Company Type :- Applicant must define the type of his company. There are different types of companies structures from which he can choose:

Private Company:

• Private Company (limited by Shares): This type of company has a maximum of 50 shareholders.

• Private Company (Exempt by Minister): It has maximum 20 individual shareholders, with no corporation listed as shareholder and treated as exempt by minister.

Public Company:

• Public Company (limited by Shares): This has more than 20 shareholders and they generally raise capital through share or debenture offerings to the public.

• Public Company (which is limited by Guarantee): It has members rather of shareholders, and is created for carrying out non-profit making activities.

Shareholders :- A Singapore company must have at least one shareholder and a maximum can be 50. The shareholders either individuals or corporates.

Directors :- In Singapore, the companies can have as many Directors as they want but at least one of them needs to be a Singaporean resident. This Resident Director must fulfil the following criteria:

➢ Must be a permanent resident of Singapore

➢ Must hold a valid Dependent or Employment Pass

➢ A minimum age of 18 years is required

➢ Not have any past criminal records.

Company Secretary:- It’s mandatory for all Singapore Companies to appoint a competent Company Secretary whose main responsibility is to ensure regulatory compliance. He must be a natural person and also a resident in Singapore. The Singapore Companies Act requires that within six months of incorporation each company must appoint a company secretary.

Paid-up Capital:- The minimum paid-up capital for a Singapore company registration is S$1 or its equivalent in any currency. 

Governance Structure:- The governance structure of a company and the interrelationship between the company and its shareholders are governed by the company’s constitutional documents as well as by the provisions of the Companies Act.

Three Simple Steps to Register a Company in Singapore -

Step 1 - Obtain a Company Name Approval from the Accounting and Corporate Regulatory Authority.

Company owners who want to register their companies need to have their company names approved by the singapore company registrar. This process can be done online and as long as you follow these guidelines, you should be approved in no time.

• The name must not be identical to an existing business or company in Singapore;

• Must not infringe any existing trademarks;

• It must not contain vulgar or obscene language;

• No other company should reserve the name of your choice.

If your name is approved, you can reserve a name for up to 120 days, and you must incorporate your business in 120 days or less. Otherwise, the company name is issued. Others will then be able to reserve a company name if they match with you.

Step 2 - Prepare the Necessary Documents for Company Registration:

Once your company name is approved, Accounting and Corporate Regulatory Authority requires the following documents for the company registration process:

• Company Constitution: It was formerly known as the Articles of Association. You can either use the standard Singapore constitution template made available by Accounting and Corporate Regulatory Authority, or the professional firm you engage would be able to draft one and advise accordingly.

• Shareholders’ identification and residential address details

• Each appointed director is required to sign a signed consent to act as a director.

• An appointed company secretary is required to sign a signed consent to act as a company secretary.

Step 3 - Register your business with Accounting and Corporate Regulatory Authority; the Singapore Company Registrar.

After the name is approved and once the documents are ready, a new company can officially register with the ACRA. In rare cases some company registrations may need to be referred to other government authorities for further verification. If ACRA conducts additional revisions, it may take a few weeks.

Process after a Successful Singapore Company Registration -

Once the company has successfully registered in Singapore then the following formalities needs to be done. 

Corporate Bank Account – Applicant have to open a bank account for managing the finances and keep track of every transaction. Many banks in Singapore will require the physical presence of company principals as part of the corporate bank account opening process.

Business Licenses - To carry out business activities, applicantneed to secure a business license. These will vary depending on the type of business you are engaged in. Remember, The applicant just registering their company and will not include permits and licenses. 
Like, Restaurants, educational institutions, travel agencies, export/import companies, and financial services will need one or more business licenses and several permits. 

GST Registration - Then applicant also need to register for the Goods and Services Tax if your projected annual revenue exceeds S$1 million.

Conclusion:- 

Singapore is the centre of Asia. So many companies owner want to register their company in Singapore. Singapore company registration is hassle-free if applicant is familiar with the entire incorporation process. 

Name :- Minali Gupta