If you are looking to start a business that will target Asian countries, Singapore is a great country where you can have your new company set up. Singapore’s location is in the strategic center of the Asian countries. Furthermore, it is near key Asian countries like India and China. Thus, business owners who set up company in Singapore are likely to succeed in conquering the Asian markets.
Aside from location, many businesses prefer to start a business in Singapore because of its easy registration process. In addition, foreign companies are treated similarly to local companies. They have almost the same requirements and are getting the same benefits such as tax exemptions and business loans. All an entrepreneur has to worry about is complying with the new company set up requirements which are what will be discussed in this article.
#1 – Minimum of one shareholder
To set up company in Singapore, you are only required to have one shareholder. If you are the business owner, that shareholder can be you. Whether you are a foreigner or a Singaporean, you have the right to solely own your business in Singapore. If you choose to have more shareholders, you can have at most 50 shareholders for your new company set up.
In registering your business, you need to submit the particulars of every shareholder. This includes their address and other contact details. However, once you have one shareholder, that is enough for company registration.
#2 – Minimum of SG$1 as paid-capital
In Singapore, it is encouraged for everyone to be able to set up company in Singapore. Upon analysis, the Singaporean government saw that money is the number one reason why people are discouraged to start a business. That is why they set only a minimum of SG$1 for the paid-up capital. This means that aspiring entrepreneurs won’t have to provide a large sum of money for their capital. They can always add funds to their capital after the registration process.
#3 – One Singaporean corporate director
Let us look into Henie’s case to explain this point. Henie is an American businesswoman who wants to expand her hair extension business in Singapore. For her new company set up, she needs a director. Although she is the director, she cannot be the sole director. She will have to hire a Singaporean to be the other director. That is because the government requires that every business in Singapore must have at least one local corporate director. Another option that she can try is to hire a nominal director to comply with the requirements for her to set up company in Singapore.
#4 – A Singapore company secretary
Aside from the corporate director, every company is required to have a registered company secretary. The secretary has to be Singaporean citizen who is fully knowledgeable of the statutory requirements of a business registered in Singapore. The secretary has to be registered to ensure that he or she can aid the new company set up in meeting all their obligations to the government. If you can’t find a corporate secretary, another option is to acquire corporate secretarial services from numerous firms in Singapore.
#5 – Registered Singapore address
When you set up company in Singapore, you need a place where you can hold your business operations. This will serve as your office and this should be a physical location. Whether you will be working remotely or in the office, you need to register a physical Singapore address for your business. This is where your company’s official documents should be found. That is because if ACRA will hold an audit, they can easily send someone to your company for checking.
#6 – Pre-approved company name
The last requirement and also the first step in incorporating your new company set up is pre-approving the company name. ACRA is very particular about the company name. That is why they require that all businesses that want to register with them must have their company names pre-approved. This is to ensure that there are no duplicate company names in their database. They also want to make sure that the business name doesn’t contain any vulgar or misleading terms. It shouldn’t contain any trademark issues or terms similar to an established company brand. If you want to ensure that your company name will be approved, visit ACRA’s website and read their guide before you set up company in Singapore.
Set up company in Singapore
To start a business in Singapore is not difficult as long as you have completed the requirements above. Once you have these prepared, your new company set up procedure will not have any issues. If you want to make sure that there will be no hurdles in registering your business with ACRA, you should contact company incorporation firms.