Singapore is one of the world’s biggest economies, with a gross domestic product of over $400 billion, or around $70,000 per capita. It is a highly developed country and is ranked by the World Bank as the second-best place to conduct business. Many people want to incorporate a company because of these qualities. This article will explain the steps to follow.
1. Choose A Legal Structure
There are different legal structures for incorporating a firm, including
- Sole Proprietorship: This is a one-man show. The owner is personally responsible for any taxes, debts, and losses that the business incurs.
- General Partnership: This is when two or more individuals agree to form a corporation and share responsibilities for managing it. The owners are personally liable for any debts or losses the firm incurs.
- Limited Liability Company: In this case, the corporation assumes a separate legal identity. The owners are not personally liable for losses or corporate debts. This structure is the best choice if you plan on taking external investments.
2. Reserve A Name
You need to apply for a corporate name with the Accounting and Corporate Regulatory Authority (ACRA). It must be a name not registered by another business; you can check corporate registries to confirm this. The name shouldn’t be similar to an established brand or trademark or contain vulgar language.
If your name is approved, ACRA will reserve it for 120 days. You must complete the incorporation within 120 days or lose the reservation.
3. Appoint Directors And Corporate Secretary
The rules for company incorporation in Singapore state that you must appoint at least one ordinary resident director. Other directors can be foreign-based, but one must be a local resident. Directors are responsible for day-to-day management and setting corporate strategy.
You must also appoint a corporate secretary who is a Singaporean resident. The secretary handles administrative tasks and advises directors on complying with regulations.
4. Choose Shareholders and Share Capital
Every Singaporean firm must have at least one shareholder, an individual or another registered company. You must choose a share capital (the total number of shares) and allocate specific amounts to different shareholders. The higher the number of shares a person owns, the greater their influence over company affairs.
5. Get A Registered Office Address
Every Singaporean company must have a registered office address to receive mail about corporate matters. You can rent your own office space or choose a virtual office address shared by many companies. You may also apply to use your residence as an office address.
6. Documentation
With the aforementioned requirements ready, you need to prepare several documents to submit to ACRA;
- Valid identification for all shareholders, directors, and the company secretary.
- Proof of residence for directors, shareholders, and secretary.
- Proof of a registered office address.
- Proof of name reservation.
- Articles of Incorporation: A legal document outlining the rules governing the business.
- Memorandum of Association: A legally binding document signed by all shareholders acknowledging their intention to form a business.
7. Submit Application
You can submit your incorporation application to ACRA along with the abovementioned documents. You can submit them online or in person. Online applications can take as little as 24 hours to process, while in-person applications take several days.
ACRA will review your application and decide whether to approve it. If approved, you’ll receive a Certificate Of Incorporation acknowledging that your firm is formally registered with the government.
