Singapore is unquestionably regarded as one of the top countries in the world when it comes to doing business. It has a strong and prosperous economy, which opens doors for people who want to start a business – from the smallest to the largest and most prestigious companies. You might as well not be surprised that Singapore also welcomes many individuals each year who are interested in starting their own businesses.
Singapore is known for its reputable and credible standing as a place to do business, as well as having well-developed financial and trading centers that provide funding for new and established businesses. Company incorporation in Singapore could be the hardest to accomplish, however, this is not the case. In fact, Singapore offers friendly rules and simple steps to take to become one of the world’s top business players!
Types of business structures in Singapore
There are three different business structures in Singapore that you might want to consider as soon as you decide to opt for company incorporation in Singapore. It can be a sole proprietorship (LP), limited liability proprietorship (LLP), or private limited company.
It refers to a business structure where just one person owns and manages the company. This implies that the person or owner of the business and the business itself are just the same. The registration process for a sole proprietorship is the easiest and the cheapest. However, one downside is that revenue generated from the business would be taxed at personal rates, and it would not be eligible for the tax benefits that most companies enjoy.
Limited Liability Proprietorship (LLP)
This is a type of business structure in which individuals from different professions such as Certified Public Accountants (CPAs), architects, lawyers, etc., are brought together to form practice in their shared field. The compliance requirements for this corporate structure are moderate, and each member has limited liability. It has, however, no corporate tax benefits.
Private Limited Companies (Pte. Ltd)
It refers to a business structure with fewer than 50 shareholders and shares that are not available to the general public. With this business structure, company incorporation to Singapore is relatively simple. The costs of incorporation and administration, on the other hand, might be expensive.
Key procedures to company incorporation in Singapore
As has been mentioned, Singapore has friendly rules and simple procedures to be followed to incorporate your company in Singapore.
- All companies in Singapore should have an approved company name by ACRA – the Accounting and Corporate Regulatory Authority of Singapore.
- Prepare and submit all necessary documents for company incorporation in Singapore.
- A corporation can be officially registered with ACRA after completing the first two procedures, which can be done online and takes only a few minutes.
Necessary documents to incorporate a company in Singapore
- Minimum of at least one shareholder
- One Director residing in Singapore and one Corporate Secretary
- Company registered address
- Paid-up capital
Additionally, you will need to submit documents such as a copy of your passport ID, evidence of residence address, and a residency card for those residing in Singapore to attain successful company incorporation in Singapore.
A certificate of registration, an authorized person resolution, and a copy of a document that accurately displays the company’s name and address are required for corporate shareholders.