Singapore takes pride in being one of the world’s most business-friendly locations. Business owners will find the Lion City an ideal destination to set up their companies, thanks to its impressive transport and infrastructure support, technology readiness, and tax leniency that make doing business easier, whether you’re a startup or an offshore firm. Whilst the government has made it more convenient to set up a business in Singapore, there are still plenty of ways to make company incorporation much easier.
Here, we give you a few simple tips to ensure hassle-free company formation in Singapore.
1. Make an in-depth research on the business you want to engage in
Singapore is a competitive business environment and so you must not go in unprepared. Make sure you have done your homework in knowing the right business you should engage in to ensure a profitable and sustainable venture in the long run. Come up with a good business plan and strategies that will make it easier for your new company to generate more clients and income.
2. Prepare your documents and requirements ahead of time
Filing and approval of your business registration is quite easy in Singapore, and it usually takes only a few hours to complete. There could only be a delay when there are documents that have not been accomplished correctly or if you’re lacking on some important requirements. Obviously, fast approval of your company incorporation depends on how quickly you can prepare all the documents and requirements that are essential for company registration.
If you’re planning to put up a limited private company in Singapore, you need to prepare documents that will detail your company information such as your company name, business activity description, shareholding pattern, shareholders’ agreement, shareholders’ and directors’ information, company secretary details, registered business address, and memorandum and articles of association. You must also prepare the paid-up capital.
If you’re a foreigner who wants to set up a Singapore company, know that you are required to have a local resident to assist you in doing such. Under the law, non-residents are not allowed to self-register any business in the Lion City. Make sure to prepare all the needed documents and requirements ahead of time, and then have a local who’s an expert in registering a company in Singapore for foreigners.
3. Categorise your business correctly
It is important to identify the right business structure for your company as this will determine the right tax and incentives that are applicable to your business.
The most popular option for new companies in Singapore would be a limited private company, which sets restrictions on the liability of the business owner to the assets of the company. This is the preferred business structure as it is the safest form of legal entity and offers owners more flexibility and sustainability with the variety of ownership options for transfer and growth that it provides. Tax-wise, it gives business owners more incentives and tax discounts.
4. Appoint key people right away
Singapore company setup involves filling in important positions in the company that are vital to company formation and the overall health and sustainability of the business. Upon incorporation, you must make sure to appoint a company secretary who will serve as compliance officer of your company. This position is mandated by law and should be filled in within six months of incorporation.
Another key role you should fill in immediately is the auditor position, which you should accomplish within three months of incorporation. If you’re exempted from audit requirements, you don’t have to appoint an auditor right away. Those who can be excluded from this requirement should have less than 20 shareholders and none of them should be a corporate one. In addition, your annual turnover must only be less than S$5 million.
5. Engage a company incorporation firm
Probably the best way to not only simplify but also streamline the whole process of company incorporation is hiring a professional services provider who is experienced in incorporating Singapore companies. Engaging a local firm is ideal as it can offers you the services of its experts who have accumulated skills and knowledge in efficiently and legally forming a Singapore company.
Incorporation services firms mostly provide a comprehensive portfolio of services to enable fast and hassle-free company formation. Engaging one which offers all the services you might need saves you time and effort in dealing with numerous documents and requirements for registering your company.
If you’re an offshore firm looking to establish a presence in the Lion City, you will find partnering with a company incorporation firm more suitable as you can have a local resident handle all your incorporation requirements. Look for professional services providers who specialise in offshore incorporation who have the know-how and years of industry knowledge and experience in enabling fast, legal, and hassle-free offshore company formation.
The ultimate benefit you can get from hiring an incorporation services firm is the valuable insights it can provide you. A local firm can advise you on everything you need to know about running a company in the Lion City – from Singapore company formation cost and the legal requirements you should accomplish to tax strategies and incentives you can receive, all within a legal framework, of course. Partnering with a professional incorporation company can help you run an honest and more transparent business operation in Singapore.
With these easy tips, you can now navigate the process of Singapore company formation with ease and efficiency. Exploring the Singapore business landscape would be much easier when you’ve already laid a good foundation for a sustainable business operation.