Singapore’s global reputation as a finance and business hub continues to grow, making it an attractive proposition for entrepreneurs and business owners alike who are seeking to expand their operations into this particular region of the world. Indeed, Singapore’s strategic location, robust legal framework, political stability and business-friendly environment have earned it the moniker “The Lion City.” You should continue reading this comprehensive guide if you want to educate yourself about the essential steps and considerations that must be made before registering a company in Singapore.
Choose the right business structure
The first step, whenever you want to undertake an application for company registration in Singapore is to select the appropriate type of business structure. Singapore offers a number of options, each with its advantages and requirements, including a sole proprietorship, partnership, limited liability partnership and private limited company. A sole proprietorship would be suitable for small businesses with a single owner, while the owner is personally liable for any business debts that accrue. In addition, partnership would be ideal for two or more people who want to collaborate in a business venture, while the partners share both the profits and liabilities. Furthermore, a limited liability partnership is a hybrid structure that combines the flexibility of a partnership with limited liability for partners, while this type of business structure is well-suited for professional services firms.
Reserve your company name
Once you have decided on a type of business structure that would be appropriate, the next step is to reserve your company name with the Accounting and Corporate Regulatory Authority (ACRA). The name of your business should be unique and not infringe on any trademarks, while this particular authority typically approves or rejects name applications within a few hours.
Appoint company officers
In addition, every company that is registered in Singapore must have at least one director who is a Singapore citizen, permanent resident, or an Employment Pass holder. Likewise, you need to appoint a company secretary within six months of incorporation, while it is also important to note that the company secretary must also be a resident of Singapore.
Register your business
Furthermore, in order to register your business with ACRA, you will need to submit the necessary documents, including the company’s constitution, particulars of company officers and shareholders’ details. Another essential step that you must complete when registering your business is to raise an appropriate amount of capital. You must also determine your company’s share capital and the amount of paid-up capital that is required, while it is essential to have enough capital to run your business effectively. You must have a registered office address in Singapore where all official documents and notices can be sent while this address must be a physical location and cannot be a P.O. Box to ensure legal compliance with the regulatory requirements.
- Choose the right business structure
- Reserve your company name
- Appoint company officers
- Register your business
Therefore, to summarise, registering any type of company in Singapore offers a wide range of benefits, from a strategic location for international trade to a favourable business environment and political stability.