Singapore is a popular destination for entrepreneurs who want to start their businesses. It is known for its strong economy, political stability, favorable tax regime, and strategic location in Asia. In this article, we will provide a comprehensive guide on how to incorporate a Business Incorporation Singapore.
Understanding the Types of Business Entities
Before starting the process of incorporation, it is important to understand the types of business entities available in Singapore. There are several options to choose from, including:
Sole Proprietorship: This is the simplest form of business structure where the business is owned and run by a single individual. The owner has unlimited liability and is personally responsible for all debts and obligations of the Business Incorporation Singapore.
Partnership: This is similar to a sole proprietorship, but with two or more individuals sharing the ownership and management of the business. Partners share profits and losses and are personally liable for the debts and obligations of the business.
Limited Liability Partnership (LLP): This is a hybrid structure that combines the flexibility of a partnership with the limited liability protection of a company. Each partner has limited liability for the debts and obligations of the business.
Private Limited Company (Pte Ltd): This is the most popular form of business entity in Singapore. A Pte Ltd has a separate legal entity from its owners and shareholders, which means that the company is liable for its own debts and obligations. Shareholders’ liability is limited to the amount of their shareholdings.
Choosing a Company Name
Once you have decided on the type of business entity, the next step is to choose a company name. The name must be unique and not already registered with the Accounting and Corporate Regulatory Authority (ACRA). It should also not be vulgar or offensive.
It is advisable to conduct a name availability Business Incorporation Singapore search on the ACRA website to ensure that the name is available for registration. You can also reserve the name for up to 120 days by paying a fee of S$15.
Appointing Directors and Shareholders
Every Singapore company must have at least one director who is a Singaporean resident. The director must be at least 18 years old and cannot be an undischarged bankrupt or convicted of any criminal offenses. If the director is a foreigner, they must hold an Employment Pass or Ent repass.
A Singapore company must also have at least one shareholder, who can be an individual or a corporation. Shareholders can be Singaporean or foreign, and there is no requirement for minimum share capital.
Registering the Company
The next step is to register the company with ACRA. You can do this online using the BizFile+ portal. The registration process typically takes one to two days, provided that all the required documents are in order.
The documents required for registration include:
- Company name
- Description of business activities
- Registered address
- Details of directors and shareholders
- Memorandum and Articles of Association (MAA)
- Opening a Bank Account
Once the company is registered, the next step is to open a corporate bank account. You will need to provide the bank with the company’s ACRA registration number, MAA, and other documents as required by the bank.
It is advisable to choose a bank that has Business Incorporation Singapore experience working with small businesses and startups. You should also consider the bank’s fees, services, and reputation.
Obtaining Licenses and Permits
Depending on the nature of your business, you may need to obtain licenses and permits from government agencies. For example, if your Business Incorporation Singapore are starting a restaurant, you will need to obtain a food establishment license from the National Environment Agency (NEA).