Singapore is the best place to set up a business if you are looking get exposure to South East Asian markets. With a supportive government policy and a highly skilled workforce, you can be sure that your business will have the best environment to thrive and grow. And in this post, we will look at nine things you need to keep in mind when you are planning to register a company in Singapore.
The number of shareholders of a company is limited to 50. And these can either be individuals or companies. Minimum, one shareholder is sufficient for a business to be registered. There is no restriction on the shareholder that prohibits them from becoming a director of the company. As such, if you are a foreign business looking to gain entry into the Singapore market, they can act have full control over the company by being both the director and shareholder.
Know beforehand the various documents required for registering a company in Singapore. These generally include a copy of your passport, proof of residence, bank reference letter, and KYC documents that detail your personal and business details. And for the local person, a copy of the country’s identity card is also mandatory. If the business is being registered in the name of a foreign entity, then documents like Certificate of Incorporation, Articles of Association etc. also need to be submitted. Keep these documents ready and you will get through the registration process faster.
If you think that your business revenues will exceed $1 million within the first year itself, then you should register for the Goods and Services Tax. As of now, you should expect the tax to be charged at 7% to the goods and services your company supplies to the clients.
If you are a foreign individual starting a business in Singapore, then you need to know that the country’s business laws mandate that the director of a company be a citizen of Singapore. This essentially means that only someone who has an Entrepreneur Pass, Permanent Residency, or a Singapore Pass are allowed to be directors. They must also have a clean record, with no history of bankruptcy. If the law finds out that the director of a company has been bankrupt previously, then not only can they require the director to step down from the position but the company may be held accountable for hiring such a person as the director.
Some businesses require special permits and licenses to operate. For example, things like investment advice, weapons sale, building contractor, medical proactive etc. all require that you take the necessary local license in order to operate. If the authorities find that you are running the company without proper licenses, then you can be punished for it. And in case you don’t know whether your business will need a permit or license, check it out with singapore-company-registration.net.
You should also decide a suitable name for your company. Pay special attention to ensure that the name you propose fits in with the registration requirements. For example, the name must not hurt the religious sentiments. It should also not have any similarity to any registered or reserved name of a business organization that exists within the country. However, identical names may be allowed if the other company has been dissolved or canceled their business name.
Every business registered in Singapore is expected to have a dedicated company secretary. This must be done within six months from the date of incorporation of the company. In addition, the person also must be a Singapore national. If you fail to appoint a company secretary even after six months after setting up your business or you end up hiring a foreign person for the job, you should expect legal troubles for violating the business laws.
The Singapore Standard Industry Classification (SSIC) groups businesses according to the kind of activity they are engaged in. Make sure to know which SSIC code your business will be associated with, and this will help you with speeding up the registration. An SSIC code is a mandatory requirement for all business entities operating in Singapore.
Once the company is incorporated, you will have three months to appoint an auditor. However, if your business does not employ more than 50 people and does not have assets totaling $10 million or more, you may be able to bypass the law. Be sure to check this up when appointing any service for registering your company.