Singapore often lists as one of the best places in the world to start your business. Statistics from ACRA state that more than 60,000 companies register each year. Even if you are a foreigner, it is very easy to set up a Singapore-based company without any hidden fee or hassle. If you have interest in company registration in Singapore, here is everything you need to know.
Getting Started
To set up your business in Singapore, you must meet some minimum requirements. These include:
- Company name: You need to get your company name approved by ACRA before you register the company.
- Local/resident director: You need to appoint at least one local director for your company. This is anyone with an EntrePass, a local citizen, anyone who has a valid Dependent Pass or Employment Pass, and those with a Singapore PR.
- Foreign director: Once you have a local director, you assign as many non-resident and resident directors as you want. However, they must be more than 18 years old and should not have any charges of malpractice.
- Shareholder: As a private limited company, you can have from 1 to up to 50 shareholders. Apart from directors, shareholders are persons or companies. Plus, 100% non-local shareholding is also possible.
- Share capital: You need at least SGD 1 worth of issued share capital to be able to register your company. You do not need a minimum amount of paid-up capital, but if you are in a regulated industry, you must meet its specific minimum requirements for share capital.
- Company secretary: You need to appoint a qualified resident company secretary within six months of company registration. Keep in mind that shareholders and sole directors cannot be appointed as company secretaries. If you can’t find anyone, Piloto Asia is an option for your corporate secretary.
- Registered address: You need a physical Singapore address (and not a PO Box) as the local registered address for the company.
If you are a foreigner setting up your company in Singapore, you need to fulfill additional requirements. For instance, you have to register with a law or accounting firm or a corporate service provider.
Register Your Singapore-based Company in 3 Easy Steps
Whether you are a local or foreign entrepreneur in Singapore, you register your business in 3 simple steps.
1. Get company name approval from ACRA
It is easy to get your business name approved from ACRA online. When choosing a name, keep the following in mind:
- Your company name should be unique and must not have any obscene or vulgar words.
- It is not reserved by any other company.
- It does not infringe existing trademarks.
Additional vetting by corresponding government agencies requires if the company name includes regulated words like “legal,” “school,” or “bank.” In this case, the approval takes a few weeks.
After you get your name approved, you reserve it for up to 120 days. However, you must incorporate your Singapore-based company within 120 days of registering the name otherwise it releases for other people to reserve it.
2. Gather the necessary documents
Once the company name approves, the next step is arranging all the necessary documents. These include:
- Company Constitution: Use the Singapore constitution template provided by ACRA or ask a professional firm to draft it for you.
- Residential address and identification of shareholders.
- Consent forms signed by the director and company secretary you appointed.
If you register your business via Piloto Asia or other corporate service providers, you might arrange additional documents as part of the know-your-customer due diligence.
3. Register your company
Now that you have an approved name and the necessary documents, go ahead and officially register your business with ACRA. This completes online within 60 minutes. In case of additional vetting, the process can take a few weeks.
What’s Next?
Once your company successfully registers, you or your filing agent receive an email from ACRA with the business profile and certificate of incorporation (COI). You then can carry out contractual and legal transactions. These include subscribing to telephone and internet services, signing leases, and opening bank accounts.
You also need to fulfill additional documents and items. For instance, you have to issue a share register and share certificates for shareholders so that ACRA knows how many shares these shareholders own.
Business profile
You get a separate email with a copy of your business profile (BizFile). The first copy is a PDF and is free of cost, but it costs S$5.50 for each additional copy (it comes within an hour of requesting it). This PDF contains information such as:
- Your company name
- Previous company names (if any)
- Registration number
- Registered office address
- Paid-up capital
- Principal activities
- Details of shareholders, directors, and company secretary
COI
The certificate of incorporation is another PDF file that ACRA emails to you and it includes:
- Company name
- Unique entity number (UEN)
- Registration date of your company
However, you must request a hardcopy of the certificate manually. You can do so online once the registration is complete. Each copy costs S$100 and you receive it once ACRA processes the request.
My Company Is Registered, What Now?
Registering your Singapore-based company is just the tip of the iceberg. There is a lot more to be done, starting with arranging the following:
- Corporate bank account: A bank account is necessary to manage your transactions and finances. Many banks in Singapore require you to be present physically to open up an account. However, if you are a foreigner and can’t travel, look for a bank that doesn’t require your physical presence.
- Business licenses: You can’t carry out any business activity without a business license. If you registered your business, it doesn’t mean you have the necessary permits and licenses. The licenses you need depend on your business and independent government agencies regulate them. If you’re a restaurant, educational institution, travel agency, or financial service provider, you probably need multiple licenses and permits.
- GST Registration: You also have to register for the GST if your projected yearly revenue is over S$1 million.
