First thing first, to set up your company in Singapore, you must follow the procedures of company incorporation Singapore with the Accounting & Corporate Regulatory Authority (ACRA) and abide by the companies act. For foreigners, it’s best to consult and engage with the service of a professional firm that can assist you in all of the incorporation processes and make sure you don’t make mistake to avoid dragging in the process. Generally, the process is very simple and only take a short time.
A Singapore Private Limited Company is a business that is limited by shares. It is a separate legal entity from the shareholders and is a taxable entity in its own right. That means, the shareholders of this type of business entity are not liable for its debts and losses beyond their shared capital.
In order to set up this type of business, there are five minimum setup requirements. You must at least have: one shareholder, one resident director, one company secretary, paid initial share capital of at least S$1, and an office address located in Singapore.
There are documents that are required for the procedure of company registration, that is:
1. Company name
Your company needs to come up with a name that is clear and simple. Avoid copyright issues by researching about other company’s names and try to be original. You must also check whether it is an available domain name for website setup.
2. Description of business activities
You must convey the details about your business activities according to the Singapore Standard Industrial Classification Code (SSIC) 2010. Select the business activity your company will be operating.
3. Shareholding pattern, agreement, and details
A Singapore Private Limited Company must issue one or more subscriber shares to the initial member of the shareholders. Shareholders must pay a minimum capital of S$1 to get it registered. This paid-up capital is the portion of share that the company has issued and recieved payment for in full.
There must be an agreement between shareholders to avoid complications in the future. Their respective rights and obligations must be defined properly.
Your company must also make sure that it fulfills the requirements for shareholding which is at least one corporate or individual shareholding is required, and there is a maximum of fifty shareholders for this type of business.
A private limited company must have at least one director who is a Singapore resident, whether a citizen, permanent resident, or someone who has an employment pass who resides in Singapore.
5. Registered address
The company in Singapore must register a physical address within the country. PO Box is not allowed. This physical address is for sending correspondences purposes.
6. Company Secretary
A private limited company must appoint a company secretary maximum six months after having the company incorporated. This secretary must also be a Singapore resident and has the required knowledge and capabilities to perform her job.
7. Memorandum and Articles of Association
This memorandum states what kind of activities the company is allowed to be involved in. The Articles of Association meanwhile specifies the rules regarding internal management of the company and this can be provided by the Singapore Company Registrar.
A private limited company must appoint an auditor within three months of incorporation for auditing purposes. There is an exception where the company may be exempt from the audit process where the individual shareholders in the company amount less than twenty with no corporate shareholders and having an annual turnover for less than S$5 million. If you are looking for an auditor you can visit this agency and contact them to find out more, https://www.companyregistrationinsingapore.com.sg/