incorporate company In Singapore

7 Things to note before you incorporate company In Singapore

Deciding to incorporate company in Singapore requires extensive study and understanding of Singapore’s corporate rules and regulations. To assist you, we’ve prepared a list of requirements, processes, and information to incorporate company in Singapore while staying inside the regulatory framework. Here are seven things you should know before starting a business in Singapore.

#1 Create a business strategy and a framework for your company

The first step in forming a business in Singapore is to prepare a well-documented business plan. A business plan is a roadmap for your company’s overall idea. It should be able to respond to the following queries.

  • What is the nature of your business?
  • How much money do you require?
  • Who are your main rivals?
  • What is your sales forecast?
  • What marketing tactics do you employ?
  • How quickly do you want your business to expand?
  • What is your expected number of partners or shareholders?

Knowing each of these elements is crucial because it will help you select the appropriate legal structure for your needs.

#2 Decide on a business name that is appropriate

Choosing the proper business name is critical for approval as well as commercial success. ACRA is the regulating authority for company formation Singapore procedures. The following requirements must be met in order for your business name to be approved:

  • It shouldn’t be too identical to any other company formation Singapore entity.
  • Shouldn’t infringe on other people’s trademarks.
  • There must be no obscene language in the text.

Preparing a list of at least three business name ideas that you like is a smart idea. For Singapore company formation services, ACRA would reject a proposed business name if it is:

  • Identical to a company formation Singapore name that already exists.
  • Identical to well-known brands or logos.
  • Undesirable.

#3 Establish a legal business address

During the company formation Singapore procedure, ACRA asks you to provide an official Singaporean business address for your firm. All official papers pertaining to your business will be delivered to this address. The following are the ACRA’s criteria for a typical office address:

  • The location of the office should be in Singapore.
  • It should be a building that serves as an office, commercial, or industrial space.
  • During each working day, the office must be open and accessible for at least 5 hours.
  • A real address, not a P.O. Box should be used as the registered address.

#4 Hire a secretary for the business

All Singapore companies must employ a professional Company Secretary, according to the Singapore Companies Act. The secretary should be able to:

  • Competent and above the age of 18
  • Knowledgeable with Singaporean business procedures
  • Must be appointed within six months of the company formation Singapore procedures and offer regulatory compliance direction and advice.
  • Must have a permanent residency in Singapore, be a Singapore citizen, or have a Singapore Pass, such as the Entrepreneur Pass.

#5 Organizational structure

You’ll require the company’s governance structure before you can formally start a business in Singapore. The business’s constitutional papers, the Memorandum of Association and Articles of Association, as well as the requirements of the Companies Act, regulate the company’s governance structure and the connection between the firm and its shareholders. There will also be a cost for forming the business.

#6 Hire local directors

The hiring of a resident director is the next stage. Every Singapore Private Limited Company must have at least one director who is a Singapore resident with a Singapore address. The following requirements must be met by the director:

  • You must be a permanent resident of Singapore, a Singapore citizen, or have a Singapore Pass, such as the Entrepreneur Pass.
  • A director must be 18 years old or older.
  • A director must first get a Letter of Consent (LOC) from the Ministry of Manpower, and he or she must also have an Employment Pass (EP).
  • It is not permitted to declare bankruptcy.
  • Must have a clean criminal record, with no prior convictions for criminal misconduct.

You may employ as many local or international directors as you need as long as they meet these requirements.

#7 Find out how to register for Singapore’s goods and services tax

GST (Goods and Services Tax) is a tax on the supply and import of goods and services that all Singapore companies must pay. You’ll need to learn about Singaporean GST and employ a competent accountant and secretary to manage accounting and tax issues to incorporate company in Singapore.

For example, if your yearly income is between S$100,001 and S$300,000, you will be taxed at an 8.5 percent rate, and if your annual income exceeds S$300,000, you would be taxed at a rate of 17 percent.

It’s worth noting, though, that you won’t be taxed on business dividends that are distributed to shareholders. Furthermore, Singaporeans working overseas are not required to pay taxes in Singapore.

Bottom line

Starting a business is a tough task. An entrepreneur’s choice has the ability to have a major impact on the company’s future. The procedure to incorporate company in Singapore is the first step in establishing a successful business. As a consequence, it’s essential that you understand the registration procedure and your choices.

The majority of international firms desire to move and incorporate in Singapore since the country provides many benefits to businesses. For as long as anybody can remember, it has been one of the world’s most prosperous economies. Its economy has proved to be robust in the face of many economic crises, which is why a few more companies are looking to grow here.

Apart from that, in 2020, it was voted the best business-friendly nation. Singapore was named the third most corrupt-free nation in the world the same year, making it an even more appealing site for companies.

Start incorporating today

WLP Group is the most popular company creation service in Singapore. We can help your firm with a broad variety of services, including work visas and relocation, accounting and taxes, business licenses, company secretary, and trademark registration. All of this for a reasonable service charge. Contact us now to begin the process of forming your business.

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