Singapore is one of the largest economies globally, with a gross domestic product (GDP) of $400 billion, or roughly $73,000 per capita, and growing. It is no surprise that many people want to register a company in Singapore and profit from this booming economy. This article will describe how to do that.
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Singapore — the Best Place for Business
The World Bank ranked Singapore as the number one country for ease of doing business in 2019 and second-best in successive years before it stopped publishing the list in 2021. For comparison, the United States ranked 6th, and China ranked 31st in the latest rankings.
Singapore’s high ranking is helped by business-friendly regulations and the ease of incorporating a business. You can register a firm in as little as one day, which is superb.
6 Requirements for Starting a Company in Singapore
- Company Name: The name is the first thing that differentiates your firm from the competition. Thus, you will need a unique name that must be approved by the Accounting and Corporate Regulatory Authority (ACRA).
- Office Address: You will need a valid office address where the government can send you a mail about business-related things. You can use any office that you own or rent or hire a registered address service for about S$100/year. Alternatively, you can apply for a Home Office permit, but it comes with restrictions.
- Share Capital: You must contribute at least S$1 as initial share capital for the firm you want to incorporate.
- Share Allocation: Your firm must declare its ownership and how the shares are split between various shareholders.
- Directors: As per Singaporean law, a company must have at least one local resident as a director. Once that is fulfilled, the other directors could be local or foreign residents.
- Secretary: Your business must appoint a qualified secretary within 6 months of registration. This secretary must be a Singaporean natural person and a resident.
Documents Required for Incorporation
- A Consent to Act form signed by each director of the corporation and its appointed secretary.
- Articles of Association: The constitution that spells out your firm’s rules and regulations.
- Valid identification and proof of residence for all directors and shareholders.
Costs & Time Taken to Register a Company
Registering a company in Singapore incurs some costs, which include:
- S$15 for ACRA to approve your business name;
- A S$300 registration fee;
- S$40 to convert your company type;
- S$60 for annual filing/renewal.
Incorporating your firm can take as little as one to a few days. However, in some cases, your registration will need to be referred to another government agency, which increases the length.
Step-by-Step Instruction
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Name Approval
You must submit a name for approval to ACRA. Follow these guidelines:
- Do not use a name that is obscene or vulgar;
- Do not use a name already taken by another firm;
- Avoid names that infringe on a registered trademark.
If you adhere to these instructions, you should not face any issues getting your name approved. Note that if your name contains regulated words like “school,” “broker,” “law,” “medicine,” etc., it will be sent to a government agency for further review, which can cause delays.
2. Documentation
With your name set, the next step is to provide documentation to incorporate your company. They include a Consent to Act form signed by every director and your firm’s appointed secretary, identification and proof of residence for all shareholders & directors, and an Articles of Association. You can find a template for the Consent to Act form on ACRA’s website.
3. Formal Registration
After submitting the required documents, it is time to register with ACRA. You can do this online, and it can be completed in less than a day. Once your registration is complete, you will receive two important documents:
- A Certificate of Incorporation confirming that your corporation is recognized by the government.
- A Business Profile containing relevant information about your corporation.
Conclusion
We have shown you what company registration in Singapore entails. It is noticeably easy to incorporate an enterprise in this country, but if you need help in any of the steps, you can consult Osome.
