9 Basic Requirements for Company Incorporation in Singapore

Having a great company concept is only the start. Singapore offers visionary entrepreneurs like yourself an alluring chance with its vibrant economy, friendly business climate, and first-rate infrastructure. But there are a few important things you must do before starting the exciting process of incorporating a business in the Lion City. Consider it as building a solid base for your ideal business endeavour. Together, we will explore the nine fundamental requirements for company incorporation that must be met for your ambition to become a legally recognised reality.

Name It Right: Your Company’s First Impression

There is more to your company name than just words on a page. It’s your flag you fly to the world, your brand identification, and your initial impression. It ought to be unique, distinctive, and relevant to what you do. Would someone searching the internet for your name be able to understand what you do quickly?

One essential thing to keep in mind is that the Accounting and Corporate Regulatory Authority (ACRA) has restrictions on names. Consider these as helpful directives to make sure everything goes as planned. Obviously, no slang, and it cannot be the exact same as the name of an already-existing business. But don’t worry—there are many creative options available! You can also consult company registration services in Singapore about a suitable name for your business.

Choosing Your Company Structure: The Right Fit Matters

Consider your company’s organisational structure as the framework of your enterprise. It outlines your behaviour, your obligations under the law, and even how you handle tax payments. The favourable good news? Singapore provides a range of choices:

Sole Proprietorship: Being your own boss and single owner makes a sole proprietorship ideal for small firms and independent entrepreneurs. But always keep in mind that you are accountable for everything.

Partnership: Assemble a group of friends or co-workers to divide tasks and resources. Internal disputes, though, can get complex.

Limited Liability Company (LLC): The most common option is a limited liability company (LLC), which provides limited liability protection for your personal assets. Perfect for the majority of companies with several proprietors.

Assembling Your Dream Team: Shareholders and Directors

Your directors and stockholders are the ship’s crew, and your firm is like a ship sailing it. Let’s dissect them:

Shareholders: Investors who own stock in your firm and have an economic stake in its prosperity are known as shareholders. They could be people, businesses, or even trusts.
Directors: These people are in charge of running the business and making important choices. They behave in the company’s and the shareholders’ best interests.

The Unsung Hero: Appointing a Qualified Company Secretary

Never undervalue the significance of having a business secretary! They are the binding agent, guaranteeing that your business conforms to all applicable laws and regulations. Think of them as your personal administrative wizard.

Here’s what your company secretary does:

Maintains company records, like the register of shareholders and directors.
Files annual returns and other documents with ACRA.
Convenes and attends meetings of shareholders and directors.
Advises on corporate governance matters.

Having a skilled company secretary can save you time, headaches, and potential legal concerns, yet it’s not required for all firms. They may also provide insightful advice as your business expands.

Finding Your Company’s Home: Securing a Registered Office Address

Now, onto securing your registered office address. This isn’t just a random mailbox; it’s your company’s official address, where legal documents arrive, and ACRA might contact you. Consider it to be the legal headquarters of your company.

The catch is that it cannot be a P.O. box; rather, it must be an actual address in Singapore. But don’t worry! There are choices for you:

Your own commercial space: If you have an office, that works perfectly.
Virtual office services: Rent a virtual address with mail forwarding and other perks. Affordable and flexible, especially for startups.
Co-working spaces: Many offer registered office address packages alongside flexible workspace solutions. Great for networking and community.

Remember, your choice impacts things like mail handling and potential visits from ACRA. Consider your budget, business needs, and future growth plans when deciding. For entrepreneurs, virtual office services can be an affordable choice, with monthly rates often starting at S$50. Registered address packages, which provide flexibility and networking possibilities, may be included with your membership if you choose to work from a co-working space.

Crafting Your Company’s Rules: Prepare Your MOA and AOA

Consider your company’s constitution to be contained in your Memorandum of Association (MOA) and Articles of Association (AA). They set forth the authority, internal policies, and main goals of your company. Fear not—they don’t have to be books!

The MOA details things like:

Your company’s name and objectives.
The type and amount of share capital you’re authorized to issue.
The liability of your members.

The AA, meanwhile, focuses on how your company operates internally:

How meetings are conducted.
How directors and shareholders vote.
How profits are distributed.

While you can find templates online, consider seeking professional help for drafting these documents. They ensure everything’s legally sound and aligns with your specific business goals.

Getting the Green Light: Obtain Licenses and Permits

While some businesses do require extra licenses or permissions, others do not. It depends on your industry and activities. Think food and beverage, construction, or financial services. Don’t worry, figuring it out isn’t a maze!

Here are some resources to help:

Business Pass or Employment Pass: Check if you or your employees need specific work visas related to your business activities.
Singapore Business Licence (SBL): Required for most businesses operating in Singapore. Apply online through BizFile+.
Industry-Specific Licenses: Research requirements specific to your industry by contacting relevant government agencies.

Remember that maintaining business operations and avoiding legal issues depend on meeting licensing regulations. Never be afraid to ask for expert advice from company registration services in Singapore if necessary.

Putting Money into Success: Create a Business Bank Account

Consider your business’s corporate bank account to be its own savings bank. It improves openness and professionalism by keeping your business and personal funds apart. It’s also necessary for handling corporate finances and transactions.

In Singapore, opening a corporate bank account is simple. Most banks provide choices suited to various company requirements. Consider factors like:

Fees and charges: Compare monthly fees, transaction charges, and minimum balance requirements.
Online banking features: Ensure convenient online access to manage your finances remotely.
International banking services: If you plan to do business overseas, choose a bank with a strong international network.

Look around for an account that complements your company’s endeavours and financial constraints. Keep in mind that opening a specific business bank account is an essential first step in practising smart money management.

The Last Obstacle: Register Your Business with ACRA

Ultimately, registering your business with the Accounting and Corporate Regulatory Authority (ACRA) is the final step. This officially brings your business to life!

Here’s how it works:

File the necessary forms online through BizFile+.
Pay the Singapore company registration cost which includes a S$15 name reservation fee and a S$300 company registration fee.
Sit back and relax (okay, maybe just breathe a sigh of relief) while ACRA processes your application.

Keep in mind that these are only estimates; the precise Singapore company registration cost may change based on your unique circumstances. For individualised guidance and a more precise assessment of your business registration expenses, it is always preferable to speak with expert company registration services in Singapore.

Usually, the procedure requires many days, and then it’s done! Now that your business is formally registered, it is prepared to take on the world.