Company Incorporation In Singapore
Establishing a business in Singapore offers numerous advantages, including a strategic location, pro-business policies, and an attractive tax regime. To navigate the incorporation process effectively, it’s essential to understand the various business structures, registration procedures, and compliance requirements.
Choosing the Right Business Structure
Selecting an appropriate business structure is crucial, as it influences legal obligations, tax liabilities, and operational flexibility. In Singapore, the primary business structures include:
1) Sole Proprietorship: Owned by a single individual, this structure is straightforward but doesn’t offer liability protection; the owner is personally responsible for debts and liabilities.
2) Partnership: Involves two or more individuals sharing profits and liabilities. Types include General Partnership, Limited Partnership, and Limited Liability Partnership (LLP). An LLP provides partners with limited liability while allowing operational flexibility.
3) Private Limited Company (Pte Ltd): A separate legal entity from its shareholders, offering limited liability protection. It’s the most common structure due to benefits like perpetual succession, ease of ownership transfer, and favorable tax incentives.
Steps to Register a Company in Singapore
The Accounting and Corporate Regulatory Authority (ACRA) oversees company registration. The process involves:
a) Company Name Approval: Choose a unique name that isn’t identical to existing entities and doesn’t infringe on trademarks.
b) Prepare Required Documents:
-Company Constitution: Outlines the rules governing the company’s operations.
-Shareholder Details: Minimum of one shareholder, who can be an individual or a corporate entity.
-Director Details: At least one director must be a Singapore resident (citizen, permanent resident, or Employment Pass holder).
-Company Secretary: Appoint within six months of incorporation; must be a Singapore resident.
-Registered Office Address: A physical Singapore address is mandatory.
-File with ACRA: Submit the application through ACRA’s BizFile+ portal. Upon approval, ACRA issues an official e-Certificate of Incorporation.
Post-Incorporation Compliance
After incorporation, companies must adhere to ongoing compliance requirements:
–Annual General Meeting (AGM): Conduct within six months after the financial year-end to present financial statements to shareholders.
-Annual Return Filing: Submit to ACRA within seven months after the financial year-end, providing updated company information.
-Corporate Tax Filing: Register with the Inland Revenue Authority of Singapore (IRAS) and file annual tax returns.
-Bookkeeping and Accounting: Maintain accurate financial records and prepare financial statements in compliance with the Singapore Financial Reporting Standards (SFRS).
