Singapore has one of the highest GDP per capita in the world and one of the lowest tax rates. Manufacturing, construction, transportation, and financial industries are top on the list of GDP contributors in this Asian country. With a very stable economy, consistent positive surplus, and no foreign debts, Singapore is surely a place to do business and set up your company. Registering a company in Singapore is an easy task, but there are compliance requirements you should know about and must fulfill before your company is registered. These are six vital things you need to know when registering a company in Singapore.
1. The Company Structure Is Crucial
The regulating board for businesses, accountants, and corporate service providers in Singapore, the Accounting and Corporate Regulatory Authority (ACRA), oversees the registration of companies in Singapore. The ACRA allows for registration of; Private limited company, sole proprietorship, and limited liability partnership. Choosing the structure for your company is vital for registration. This structure is determined by the initial investment, the number of partners, liability, and expansion plans. Your choice of company structure determines requirements for registration as well as tax returns. While sole proprietors may pay up to 22% as personal income tax, private limited companies pay a corporate tax of up to 17% of their taxable income, but partners are not charged taxes for the company. A registered and eligible start-up company may be exempted from any tax for the first S$100,000 of its taxable income and reduced taxes for three years after being founded. Going through this information is a lot of work, especially as a new business owner; so you can click here to learn more and get professional help to avoid unnecessary paperwork. When registering a company, choose the structure that works for you and your preferred tax benefit.
2. The Company Name Must Be Approved By ACRA
The key requirement to register a company in Singapore is the company name. The ACRA must approve of the company name before it can be registered. The company name must be unique and relate to the business the company is set up to do. It must also be meaningful and easy to read. The company names with obscene words or acronyms will not be approved. Copyright issues should also be fixed before registering a company name. If keywords of established sectors like “Education,” “Bank,” and “Media” are used in the company name, appropriate authorities should be notified and asked for approval. A name can be reserved by the ACRA for your company for 60 days before complete registration.
3. The Company Must Hire Residents And Have A Physical Location In The Country
To register a company in Singapore, at least two (2) residents must be hired in managerial positions and more than 2 in other positions. At least one director of the company must be a resident in Singapore. The secretary of the company must also reside in Singapore and be appointed within six months of registration. Resident employees can be citizens, permanent residents, or residents with EntrePass. Owners or partners of the company are required to hire staff based on meritocracy. A registered physical office address is also required by the ACRA for registration.
4. Fill Forms For Registration And Prepare Necessary Documents
After securing and getting approval for the company name, meeting requirements for hiring, and settling on a preferred company structure, partners can get forms for registration from the ACRA’s website. To submit forms, you must include documents of name approval, a brief description of the company, and the registered address of the company. You also need to add the identification of the owner or partners, particulars of directors and management staff, passport details, and identity cards for non-citizens and citizens.
5. Registering A Business
While a company and the business entity may share some similarities, they are not the same, and registration for each of them is slightly different in Singapore. Registration proves the legitimacy of business and protects from liabilities. Businesses with one or more individuals where the business name is a full name of the owners are exempted from registration. The companies exempted from tax obligations are also exempted from registration. A unique business name, physical address in Singapore, and structure are also needed to register a business. A fee to be paid to the association is required for business registration. Business registration can be done via the BizFile+ website. It takes about 15 minutes to 2 months to complete the application process and get approval for business registration in Singapore.
After registering your company, you can buy a company profile which states information about your company and your unique entity number (UEN). Companies that require other licenses and permits can apply and be issued by relevant government authorities. A bank account can be opened for the company, and business may proceed to start.
Registering a company in Singapore is quite straightforward and easy as long as you have all the required information and documents. Asides from using the information shared above, you can also hire agents and professionals to handle the process for you while you focus on other things.