Singapore companies are allowed to have 100% local or foreign ownership. New shares can be issued or existing shares can be transferred to another person after the company has gone through the incorporation process. For businesses with a view to growth, a company would be the most suitable business structure.
What this means is that because you’re registered as a sole proprietor, your liability is unlimited. If the owner can’t pay the business debt incurred, the creditors will come after your personal assets. Example creditors include banks, utility providers, suppliers etc. After registering your company in Singapore, there’s more to do to ensure your business thrives.
ACRA mandates the inclusion of a Memorandum of Association in any Singapore company, which outlines crucial details such as share capital amounts and equity distribution. For instance, if you plan to trade overseas or accept foreign currency, you’ll need a different business account for your Singapore company. Take them seriously and ensure all the information is accurate. Your company’s name must be approved before you apply to ACRA. So, any confusion over the name will delay the process until it’s resolved.
Private limited companies in Singapore are very efficient tax entities. They enjoy a corporate tax rate of 9% for profits up to S$300,000 and is capped at 17% if it’s higher than S$300,000. Sole proprietors and partnerships will have to pay a personal income tax of up to 22% on their business income. LLP’s are meant for professional service providers such as accountants, architects, and law firms where two or more professionals build a joint practice in their field. When you register as an LLP, ACRA might require additional vetting from other agencies before your company is registered.
Like the other partnerships, LLP requires at least two partners at all times during the business is in operation. A limited partnership is an alternative form of the general partnership structure. The limited partners’ liabilities are limited to their initial investment in the partnership, be it capital or property. But limited partners cannot participate in the business management process. This makes it difficult for companies like us to recommend to our clients.
Otherwise, the applicant may also engage the services of a registered filing agent (e.g. law firm, accounting firm or corporate secretarial firm) if the applicant does not have SingPass. However, companies have many more compliance requirements as compared to sole-proprietors and partnerships. These include filing annual returns and holding annual general meetings, and a failure to do so would result in disciplinary action from the Accounting and Corporate Regulatory Authority (ACRA).
Like sole proprietorship, partnerships are ideal only for specific situations. Contact Piloto Asia today for seamless company registration and expert guidance tailored to your unique needs. Are you a foreign entrepreneur looking to establish your presence in Singapore? With Piloto Asia, registering your company and owning 100% equity is not just possible, it’s straightforward and efficient.
- As your appointed registration agent, we will prepare all necessary documents.
- You can also transfer ownership of the company, be it partial or whole, without having to disrupt your operations or going through intense legal proceedings.
- They are also subject to closer scrutiny by the Singapore government because they’re involved with raising funds from the public.
In this case, a sole proprietorship and members in an LLP’s liabilities are unlimited. For shareholders in a Pte Ltd, their liability is limited to the investments in their shares. These registers (except for the register of members for public companies) are maintained by ACRA in electronic form.
Why Register (or Incorporate) a Company in Singapore?
ACRA’s BizFile+ platform offers businesses a wide range of valuable services that are accessible worldwide. Following incorporation, ACRA will email the company’s officers and the person in charge of the filings with an e-notification of incorporation. One key requirement is to have a Singapore resident as a company director or authorised representative. These services are particularly useful for foreign entrepreneurs. A secretarial service will flatten the learning curve of running a Singapore company. Th corporate secretarial firm will keep you compliant without running the admin yourself.
Step 2 – Prepare the Necessary Documents for Singapore Company Registration
As long as the business director legally resides in Singapore, they can help you fulfil this requirement. Most likely, the company structure you need is that of a private limited (Ltd.) company. Only Singapore citizens, permanent residents, https://intuit-payroll.org/ and foreigners with a Dependent’s Pass, Overseas Network & Expertise (ONE) Pass, or Letter of Consent can register an SP business. Singapore is a fantastic place to start a business— but registering a company can be tricky.
The company should be less than 6 months old or can be registered after EntrePass approval. All companies are required to update ACRA via BizFile+ when a director joins or leaves the company, and when there are changes in the directors’ particulars. After you have submitted the relevant transaction, BizFile+ will update your company’s electronic register of directors. One of the ways is to appoint a Singaporean or Permanent Resident as one of the company directors.
The World Bank has listed Singapore as one of the most business-friendly countries for many years now. Unless specified by our clients, Piloto Asia recommends registering as a Pte Ltd because of the numerous benefits it can enjoy. If you’re starting a business in Singapore, the first question to consider is whether you need to register it.
Enjoy Tax Benefits and Incentives
If you cannot relocate to Singapore, one of the company directors or authorised representatives must be a Singapore citizen or permanent resident of Singapore. If you plan to set up a company, you may check out our Singapore Company Incorporation services for reference. If you need further advice, Piloto Asia will be more than happy to answer all of your questions regarding Singapore company registration, hiring company secretaries, Tax matters and more.
As soon as you appoint us to register your Singapore company, we will apply for the approval of your desired company name. In case your first choice name is not available, our team will apply for your other choices. After registering your company, you may need to incur certain fees in order to maintain it and ensure regulatory compliance.
If there are changes to the company’s shareholders or share capital, you should file the appropriate share-related transactions via BizFile+. A private limited company means your business is a separate legal entity. You and other members have limited liability if the company fails. A public limited company is another form of LLC, but they may offer their shares to the public instead of a private limited company.
This is perfectly acceptable to ACRA; you don’t need a premise if you don’t want one. A common route for many businesses to take is to use a company secretarial service. Your secretary will track deadlines, keep documents in order, and ensure you stay compliant so that you don’t have to worry about this aspect of your business.
This is a legal requirement; the role is critical to your business, and Singapore companies cannot operate without one. It requires here’s an example illustrating the percentage completion method various certifications and involves many responsibilities. Every business must appoint a company secretary residing in Singapore.