Learn The Essential Legal Requirements on How to Set Up a Business in Singapore
The total change in technology and more straightforward ways on how to set up a business in Singapore makes it a preferred investment destination. As a result, Singapore enjoys the excess number of credible professionals to help the company in the registration process. You have the benefit to access tax discounts and incentives from the government to your satisfaction as a business owner.
Have you ever thought of seeking business solution services when you open company in Singapore? If yes, AI Accountant is one of the best business solution service providers in Singapore that will take care of your needs. Because of our idea to develop an automated digital accounting through Artificial Intelligence, you’re bound to enjoy a range of services including:
- Corporate registration
- Payroll and Bank opening services
- Accounting and Audit services
- Employment pass application
- Legal and Tax compliance services.
Your business future is at the right hands because of Al Accountant. You can find more about us by visiting our website or making that critical call.
With that in mind, setting up a business in Singapore will require you to get acquitted on the standard rules and regulations under the Company’s Act. Let’s delve into some of the requirements on how to register a company in Singapore:
1. Secure And Register A Business Name
Every business must have an identity. First, secure and decide on a distinct business name that aligns with your mission and vision. The next process is registering it with the Accounting & Corporate Regulatory Authority (ACRA) for approval. You can do it online via ACRA portal BizFile using a SingPass ID to secure access to the website. It only takes 15 minutes to do, but the process might take longer (two weeks or a month) once your documents need approval from other authorities.
The SingPass ID is the gate pass to secure a business license for your business through the LicenseOne. The administration fee is roughly S$20. Also, foreigners who probably might not have time to get their employment pass can consult the services of AI Accountant. They will ensure that your employment pass application process runs smoothly through the Ministry of Manpower.
2. Notarization Of Your Constitution
Each company must have a constitution that controls the management of the company. Therefore, Singapore’s Companies Act requires you to submit the constitution to the Registrar for certification. Then, the proposed constitution must be certified under the presence and consent of directors within four months from the date of name application.
Before getting your constitution notarised, you’re required to appoint at least one resident director and a maximum of 50 shareholders who may be local or non-resident. You also need to select a qualified resident company secretary under six months of your company’s incorporation. Then, you are required by the Company’s Act to have a minimum of S$1 paid-up capital to be eligible to register your company.
Also, Singapore company registration for a foreigner or non-resident is required by law to engage a professional firm like AI Accountant. In case you’re operating from abroad, you can appoint a local director to accomplish the minimum one resident requirement.
3. Registration Of Address And Business License
Your business must have a business license and address before you can start a business in Singapore. Not all companies in Singapore require licenses. Because getting licenses depends on the nature of business activities. You’ll need to secure a business license if your business is a restaurant or financial services, you’ll need to obtain a business license. Therefore, you must register for a residential or commercial address with the local government authorities.
4. Compliance On How to Set Up A Business in Singapore
The Singaporean law requires agreement on specific regulations that’ll ensure eligibility of your company. Therefore, the law requires every company to maintain annual books of accounts on a timely basis. The financial statement should be prepared and filed with the authority in XBRL format.
It is a mandatory requirement by law to convene an Annual General Meeting in every calendar year. You should file annual returns one month after the date of the AGM of the company. The financial year cycle in Singapore can begin from any month and does not necessarily have to start in January.
5. Opening A Corporate Bank
You must have a corporate ban if you are planning to incorporate a company in Singapore,
You must meet the following requirements for you to be able to open a corporate bank:
- Completion of a bank application account form.
- A resolution by the Board of Directors is indicating the approval of the opening of the bank account. You must provide the signatories to the account.
- Accredited true copy of the certificate of incorporation (the company secretary or one of the directors must attain the certification).
- Signed valid copies of the company’s Memorandum and Articles of Association.
- Signed valid copies of passport (Singapore IC), a registered address, proof of directors, signatories and final beneficiary owners.
AI Accountant is more than willing to assist you for the bank opening process when you are unable to do so. Therefore, try out our services at your convenience and make everything happen.
Apart from getting your licenses or documents ready, it is essential that you take care of the following items ready too:
- Company’s Stamp: It is an essential item that gives credibility to all your company’s documents. It contains the name of your company and registration number engraved on it. Get this item ready to ensure that all your documents are professional and authentic.
- Company seal: This is another must-have item when as part of Singapore company registration. In fact, it’s one of the legal requirements by the Singaporean laws.
- Share certificates: the Company’s Act requires the company secretary to issue each of the shareholder’s share certificates. It serves as their proof of ownership in the company, which must indicate the distribution of shares.
Singapore company registration can only be possible if only you have fulfilled all the requirements. You stand to benefit from tax exemptions and incentives as your company will pay less than nine percent on the first S$300,000 of your annual profits. Another flat rate of 17 percent precedes and you’re not bound to pay capital gains or dividend taxes.
Overall, Singapore ranks as the first country in Asia that’s easier to do business. If you want to find out more about how to set up a business in Singapore and the registration process, get in touch with AI Accountant, and you’ll never regret your decision.
Chai Chung Hoong, Account Manager
Chai Chung Hoong will assist you in all accounting related services, and help your company in digital transformation.Contact Us