Tucked in the heart of Southeast Asia and neighboring major markets, Singapore is the perfect jurisdiction for offshore business. For years, the country has stood out in Asia-Pacific and, indeed, globally for its incredible business environment. So, if you are an investor or entrepreneur looking for the right way to transform your enterprise into that multinational of your dreams, Singapore might be the perfect answer. However, you have to start with business incorporation.
While it is true that company incorporation in Singapore is so much simplified when compared with other jurisdictions, many investors still find it a major challenge. Well, we are here to simplify the process for you. Keep reading as we explore the main steps that you should follow to register a company in Singapore.
Step One: Select the Name of Your Company
Every business in Singapore, and indeed everywhere else on the planet, requires a name. This is crucial so that the business can easily be differentiated from others. Therefore, you need to settle on a name that is unique to avoid conflict of interest with other companies or government agencies.
Although the name you can choose is open, it is advisable to look for something that explains what you do. A name, say, Jerry Auto Company, would easily tell interested clients that you deal with cars, auto parts, or related services.
Once you have selected the name, ensure it is reserved for you before submitting the main documents for company registration in Singapore.
Step Two: Establish the Business Activities and Check the Licensing Requirements
This is another important step in company registration in Singapore. Every investor is required to identify two main company activities in line with the Singapore Standards Industrial Classification Code. It is crucial to take a closer look at the code and select the areas where your company enjoys a competitive advantage.
At this point, you should also check all the other requirements for business registration and operations in Singapore. If you have already done this, it will be an excellent moment to recheck them and be on top of the latest updates. For example, there are some businesses, such as those in finances, telecoms, and pharmaceuticals, that require additional permits to operate in Singapore.
Step Three: Get a Registered Office, Shareholders, and Directors
Another requirement for company registration in Singapore has the right shareholding. The primary requirement for every company is SGD 1.00, but there are some licenses that require a larger paid-up capital. For example, if you plan to finance the company through a loan, banks will demand to see a higher registered capital.
Along with share capital, you also need to get shareholders. In Singapore, the minimum requirement is one shareholder, and this can be a real person or a corporation.
Also, you need to select the directors of the company, because their details will also be required during company registration.
Step Four: Prepare the Documents for Company Incorporation in Singapore
At stage four, you need to prepare all the documents that are needed for your company to be registered. These include:
- Pre-approved company name.
- Details, including the copies of passports of the company’s directors and shareholders.
- A clear description of business activity.
- The last day of the company’s proposed fiscal year-end.
- Company constitution.
Once you have all the documents, submit them to the registrar of companies. Then, wait for the registrar to send an email confirming that the company registration has been approved.
After incorporating a company in Singapore and receiving a certificate of incorporation, there are some additional procedures that will be required.
These include opening a bank account, setting up the company’s statutory books, the payroll system, and goods & service tax registration.
For many foreigners, the requirements might not be complex, but compliance is never easy. For example, having to fly all the way to Singapore, perhaps severally, to get a registered office can surge the costs. Also, getting a nominee director for companies without local officers might be a challenge. This is why you should work with an agency of experts to simplify the process.
Experts in company registration in Singapore will not only help in preparing the documents required for incorporation, but also in identifying the right nominee director and company secretary. With the right agency for assistance, you can never go wrong on company registration.
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