Some facts you should know to register a company in Singapore
One of the flourishing countries of the World, Singapore attracts corporate from across the world. Since many tax benefits are offered here for start-ups it remains as an attractive land for business. Any local or foreign national can start a business here by following the rules as specified by the country and regulated through the ACRA.
You could take the help of company secretary service Singapore in the process of formation of a company in Singapore.
What factors help decide the choice of business structure?
How many people own the business is an important factor. If you are a sole proprietor, you can register the company as a sole proprietorship. If the number of owners is more than two but less than 20, it is wise to start a Limited Liability Partnership (LLP). If more than 20 individuals group together to form a company by holding a part of the capital, then you can register the company as a private limited company.
Investment- With a small initial investment, you can start as a sole proprietorship. With more money pooled in with more people joining, you can consider converting the company into a private limited company.
Tax rates- The tax paid by sole proprietors is called personal income tax whereas the tax paid by a private limited company is corporate tax. It is paid from the income of the company and not from the owner’s.
Liability- When you are a sole proprietor, the entire liability is on the owner only. This is the case with LLP also but limited to the amount they have agreed upon. In a private company, the liability is limited to the number of shares held.
What are the main requirements for registration?
- You need to have the Company name registered with ACRA. This is the identity of the company.
- The names of Directors with at least one of them being a Singapore citizen, or a PR holder.
- The names of shareholders with the minimum being 1 and maximum 50.
- The company should have a registered local address.
- The company should name a person as a Company Secretary.
- The initial paid-up capital amount should be specified.
The requirements for name registration:
The first requirement when registering a company is to register its name. This has to be as per ACRA requirements. The name decided should be unique and easy to read without any vulgar words. It should also not resemble an existing company’s name. For companies with names as Bank, media, Education, etc special approval is required.
Three names are chosen and sent for approval. A time frame of 60days is given to incorporate the company after approval of the name.
When all the formalities are followed you can easily register your company in Singapore.
