As Singapore is one of the most famous destinations for entrepreneurs to open business in due to its pleasant tax regulation and system, many people compete every day to get their company incorporated in the country. To start a company in Singapore, businessmen need to go through the process of company incorporation. Company registration is mandatory in order to get the company approved legally by the law so that it can run a legal business in Singapore. For people who are not experienced in starting a business in Singapore, company registration may sound like a difficult step. However, in reality, it is considered simple and it doesn’t even take long for a company to be registered. Company registration in Singapore only takes approximately three days, although the time consumed may vary depending on the type of business the businessmen are trying to conduct in Singapore.
Step One: Decide on a Business Entity
Before you decide to go through the process of company registration, you must first think about the type of business you are going to run in Singapore. Generally, there are two different types of business entities that are approved by law, which are Sole Proprietorship and Partnership. The options have different laws and tax regulations respectively. The most common type of company that is often applied for by entrepreneurs, which a type of Partnership that is known as a Private Limited Company. Companies in Singapore are registered with the Accounting and Corporate Regulatory Authority (ACRA). You must find out as much as possible about the advantages and disadvantages of each type of business entity and decide which is most appropriate for your capability and experience.
Step Two: Incorporate Your Company
After deciding on the type of business entity to open up in Singapore, you will have to get it registered with ACRA and the Inland Revenue Authority of Singapore (IRAS). There are a few requirements to be met:
- Having an ACRA approved company name
- Having at least one shareholder for the company
- Have appointed a local director who is either a Singapore citizen, Singa pore permanent resident, or a holder of Employment Pass. The person must reside within the country
- A Singaporean company secretary
- Paid-up capital of minimum S$1
- Registered a physical Singapore address
A newly incorporated Singaporean company needs to apply for a Business Profile from ACRA. A Business Profile contains information and report details of the business you conduct, involving registration number (UEN), registration date, registration date, shareholder names and details, and other important data. This Business Profile is the requirement for bank account opening and license application if necessary.
Step 3: Opening up a Bank Account
After your company is registered and incorporated, you will need a bank account for your business. There is a lot of business to choose from, and you are free to open up a local Singapore bank or even an international bank.
Step Four: Additional Steps
Depending on the type of business you are running, you may need business licenses and permits. And if issued by ACRA, you will have to register office hours and acquire a registration number. If your business involves importing and exporting activities, then you will have to register with the Singapore Customs.