Want to start a business in Singapore? The most popular one here is a Private Limited Company (Pte Ltd), and it has every reason to be so. It creates a professional image for you, secures your personal assets, and ushers you into tax discounts and finance. However, before you hurry off to register, you will need to learn the bare minimum that the government will expect of you.
At Least One Shareholder:
All Pte Ltd companies in Singapore are required to have one shareholder. It may be any person or organization, including another company. They can also be foreign or Singaporean. You are allowed a maximum of 50 shareholders, but it is good enough to have one when you are just beginning.
The company will be owned by your shareholder(s) in shares with the minimum issued share capital at SGD $1. Yes, you can start a company in Singapore with the cost of a cup of coffee. This is one of the lowest entry points for company incorporation in Asia.
A Local Resident Director:
There must be at least one director who resides in Singapore. This implies they should be:
- A Singapore citizen
- A permanent resident
- Someone who has specific work passes, such as an EntrePass.
What if you are a foreigner without permanent residence in Singapore? You can get a nominee director, who can satisfy this legal requirement. You still can remain a 100% shareholder in your entire firm, but you need to have someone locally to suit the director rule.
A Qualified Company Secretary:
You are required to have a company secretary within six months of incorporation. This individual does the following:
- Ensures that your business does not operate contrary to the regulations
- Maintains your statutory books properly
- Submits required documentation to the ACRA (the Accounting and Corporate Regulatory Authority).
The company secretary should not be a company but a person residing in Singapore. Just visualize them as your compliance co-pilot.
Registered Local Address:
All firms in Singapore are required to have a registered local address. It is the formal address to which all your company’s notices and letters are to be posted. It has to be a physical address in Singapore, not a P.O. box.
If you are operating your company at home, you can use your residential address as part of the Home Office Scheme, provided you satisfy the stipulations.
The Right Name and ACRA Approval:
Prior to incorporation, you should first choose a name for your company and obtain its approval from ACRA. Your name should be:
- Distinctive
- Not very close to other names
- Should not include some offensive or restricted words.
When it is approved, you can hold it up to 120 days as you manage the remaining set-up for your company.
The Wrap-Up:
The process of establishing a Private Limited Company in Singapore is surprisingly easy. The only requirements to be met are one shareholder, one local director, a company secretary, a registered address, and an approved name.
Check these boxes, and you are already halfway to having your business official. It is then simply a matter of filling in the incorporation documents and preparing to open your doors to the world.
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