Singapore has a massive reputation as one of the biggest global economic hubs. This reputation stemmed from the fact that the country has the most successful economy. In addition, this economy thrives because of tourism, financial services, a cargo seaport, and machinery and electronics manufacturing experts. Besides, it’s a thriving economy, which is why many entrepreneurs are considering forming a company in Singapore.
Having said that, as Singapore has few natural resources to export or depend on, the government decided to make initiatives and extensive trade networks that have attracted the attention of many companies, big or small, from different parts of the world.
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This attractiveness of the industries and other advantages, such as a flexible immigration policy, a politically stable environment, and advanced landscape technology, are the major reasons many businesses are looking to establish a company in Singapore.
Like every other civilized and developed country, there is a need for every company to be registered and incorporated under the business and economic laws. Certain perks are reserved once a company is formed, including incentives and specific tax and capital gains extensions. Of course, you want the goodness that comes with company formation Singapore.
This article is a perfect place for entrepreneurs to start before forming a company in Singapore.
Required knowledge for registering a business
Before you can register your company with the Singaporean government and economy, there are certain things an entrepreneur has to keep in mind. You must prepare certain information to submit your application for this registration and incorporation. These requirements are almost the same for both indigenes and foreigners alike.
However, there are slight differences. A foreign entrepreneur will need local experts who work in the fields in which the company will offer services. They would also need locals who are professionals in the corporate industry and can maintain a local office.
Whether you’re a foreigner or an indigene in Singapore, incorporating private limited companies in Singapore has specific requirements listed next in the article.
1Company’s desired name
You can’t register a company for incorporation without choosing a name for it. As it is, choose a name suitable for the company, and at the same time, it must not be identical to that of an existing company. It must also not contain anything explicit or prohibited in the country.
After choosing a name, you must submit a name application on the online company registration and filing portal known as Bizfile. Specific terms require consultations with governing bodies before approval. After the company name is approved, you have 120 days to complete the company’s incorporation.
2Choosing the company’s principal activities
The reason any enterprise is established is often reflected in its primary activities. A company’s principal activities are the major activities and projects that generate the most added value. When registering to incorporate your corporation, you must list at most two principal activities in which it will be involved. These activities can be chosen from the SSIC set-out list.
3The company’s shareholders and directors
A company can’t work without a board or group of people to control and guide its major activities and work path. Hence, shareholders and directors are needed when registering the company. The criteria for directors and shareholders include having at least one director as a Singapore resident.
A director or shareholder must be a person of sound mind over 18 years, has not been convicted of fraud or dishonesty, must not be an unsuitable director of a bankrupt enterprise, must not be an undischarged bankrupt person by a Singaporean or foreign court, etc. These shareholders and directors will also have to release their details.
4Registered office
What’s the point of establishing a company in Singapore if it doesn’t have space? A registered office space or area is needed when incorporating a company. An office for an enterprise can be obtained by renting a space, applying for a home office license, or opting to run a virtual office.
Each of these advantages has its costs and benefits. However, regardless of the kind of office, a company’s registered office must be open for at least five hours during business hours on each business day. It must not be a P.O. Box but a physical office address in Singapore.
5Constitution Documents
As the saying goes, where there’s no law, there’s no offense. This is why there are company constitutions for each established company filled with the memorandum and articles of association signed at the early stages of establishment. These are essential legal documents that must be submitted after careful review.
6Question Processes
Analyzing the processes and delivery techniques of current product or service offerings can also help you find business prospects. Maintain an open mind when you assess each procedure and consider potential ways to enhance it. For example, you may ask:
- Might we be able to speed this up?
- Is there a more cost-effective way to carry out this process?
- Can we carry out this procedure in a more environmentally friendly manner?
In the end!
Due to its economic activities and successes, many companies and business owners are willing to establish their enterprises in Singapore. This is why this article provides a guide that leads you through various useful steps for forming a company in Singapore, in particular.
