How to go About Setting up a New Company in Singapore
Six years ago World Bank announced the little island nation with meagre natural resources as the best place for anyone to set up and conduct business. Since then they’ve done so well to keep the position without relinquishing. The idea of setting up a business company in Singapore is mostly appealing due to the hitch-free process involved. As a matter of fact, it is widely believed that it takes barely 3 days for you to set up a new company in Singapore. Coincidentally, it just takes about 3 steps to complete the setup.
In this post, we will review what it takes to set up a new company in Singapore, who can set up a new company, and measures to take.
What Makes Singapore the Best Place to Set up a New Company?
very many factors from the warm and sincere disposition of the citizens to the role of the government, come to play that helps to achieve the seamless experience people have when it comes to setting up a company in Singapore. However, some of the most prominent ones include.
- The nation enacts business-friendly laws that do more to foster healthy competition and efficiency in conducting business than to stifle it
- The nation supports a flexible immigration policy
- And lastly reported by SaranyaKapur in an article posted on business insider, “…one big reason why Singapore has dominated the list for so long is its simple method for filing taxes.”
The works bank ranks the US as the 4th best place to set up and do business, but they sit at 64th in terms of the ease of conducting taxes. That’s a huge divide!
So How do You go About Registering a New Company in Singapore?
There are essentially three steps that go into setting up a new company in Singapore which is summarized below. Anyone can open a new company in Singapore by Follow these three easy steps to open a new company.
- Decide on the type of business
Many business options exist and you need to know the business entity before you venture into because your business will be registered under that entity. Sole proprietorship, limited liability partnership, and private limited company are business options with varying advantages and disadvantages peculiar to each. Meanwhile, many business starters register their new company with the Accounting & Corporate Regulatory Authority (ACRA) as “private limited companies” due to its scalability. Besides, shareholders are not subject to debt and losses beyond their share capital.
When you register your new company as a private limited company, it is recognized as a taxable entity.
- Set up your company
Laws and guidelines already exist to aid new companies with the start-up process. For instance, the private limited company (PLC) is regulated by the Singapore companies act. The company must align with ACRA regulations and laws under the inland revenue authority of Singapore (IRAS).
Regulations and requirements include.
- Company name– as approved by the ACRA.
- Shareholders – Minimum of one.
- Directors – At least one director must reside in Singapore.
- Company Secretary – must reside in Singapore.
- Paid-up capital – At least S$1
- A Registered address – A physical office address is required.
As a newly set up Singaporean company next, you are to purchase a business profile from ACRA. A business profile is an electronic report that contains carrying information about your business, enclosing your registration number (UEN), registration date, shareholders, etc. The business profile is an essential key to many locks that include a document that enables you to open a corporate bank account, browse potential business partners, and apply for licenses and permits.
- Open a bank account
The last step involved in setting up a new company in Singapore for yourself is to open a bank account. You can do this at any one of the local or international banks.
Other processes that follow after incorporation
As a newly incorporated company, there are additional requirements various additional processes exist for post-registration.
- Registration with Singapore central provident fund (CPF)- the central provident fund CPF is a Singapore compulsory pension fund system that requires the employer and permanent resident employer to contribute a percentage of monthly salary to the fund.
- Goods and services tax (GST) registration- GST is a tax imposed on the import of goods into Singapore and the supply of goods and services in Singapore. If your annual taxable revenue exceeds S$1 million per annum, you must register for GST.
- Licenses and permits –certain business types require authorization or license from government authorities. Confirm if yours is one of those. Examples of such businesses include banks, importers, childcare centers, liquor distributors, financial advisers, money lenders, private schools.
- Custom registration- if your business involves imports of goods into the country and export of goods out of the country, you must register with Singapore customs.
- Office hours registration- you must register your office hours and address. The minimum requirement is 3 hours per week.
- Registration number- your business registration number issued to you by ACRA must be on all your business documents for official business communication.
Registering a new company in Singapore FAQs
How Long Does it Take to Register a New Company in Singapore
If you have all your documents ready and with a Singapore company service provider, it could take you about one full day to complete your company registration in Singapore.
What is the Most Seamless Route to Complete Company Registration in Singapore?
The easiest and hassle-free route to complete your company registration is to opt for an experienced Singapore service provider that will help your set up your company in line with regulations and guidelines.