Singapore – a popular business destination among the global entrepreneurs

Singapore ranks 2^nd in the latest “Ease of Doing Business” indicator list. Singapore stands out as a favoured destination among entrepreneurs seeking global business expansion due to its reputation for a business-friendly atmosphere, robust infrastructure, and supportive governmental policies. Additionally, Singapore serves as a pivotal hub for global trade, boasting a well-established financial and legal framework.

Distinguishing between the types of companies applicable in Singapore is crucial before delving into the registration process. Private Limited Companies (PLCs) and Limited Liability Partnerships (LLPs) emerge as the two predominant structures. Private Limited Companies, being the most prevalent, offer a distinct legal identity separate from owners and shareholders, providing limited liability protection. Conversely, LLPs, function as partnerships where each partner enjoys limited liability protection.

Understanding the prerequisites for company registration in Singapore is imperative for prospective entrepreneurs:

1. Company Name: The initial step involves selecting a unique name for the company, ensuring it is not already in use, offensive, or in violation of trademark or copyright laws. Checking name availability through the Accounting and Corporate Regulatory Authority (ACRA) website is recommended.
2. Directors: Singaporean companies must have at least one director who is either a citizen, permanent resident, or Employment Pass holder. The director must meet specific eligibility criteria, including being 18 years old, free from bankruptcy, and without criminal convictions. Foreign individuals aspiring to be directors must obtain an Employment Pass.
3. Shareholders: A private limited company in Singapore can be formed with just one shareholder, and can have a maximum of 50 shareholders. Shareholders, who may or may not be directors, can be individuals or corporate entities. Residency in Singapore is not mandatory for shareholders.
4. Company Secretary: Within six months of incorporation, every Singaporean company must appoint a company secretary, who must be a Singapore resident and cannot simultaneously be a director or shareholder.
5. Registered Address: A physical address (not a PO Box) is a mandatory requirement for a company's registered address. It should serve as the location for official correspondence and the safekeeping of company records and registers.
6. Paid-up Capital: A minimum paid-up capital of S$1 is mandatory for a private limited company in Singapore, with the flexibility to increase it post-incorporation.
7. Incorporation Documents: To register a private limited company in Singapore, the following documents are required:
   1. Details of Shareholders & Directors: Submission of identification documents for directors and shareholders is a key prerequisite for company registration in Singapore. This includes a certified copy of their passport, proof of address, and other identification documents issued by the government. Certification can be done by a notary public, advocate, attorney, or certified public accountant.
   2. Company Name Approval: Business owners must select a unique company name that is not already in use, offensive, prohibited, or similar to existing business names. The registration documents should also encompass a brief description of the company's intended activities.
   3. Company Registration Form: The Singapore Registrar of Companies (Accounting and Corporate Regulatory Authority (ACRA)) issues a Certificate of Incorporation upon registering a new company. This certificate acknowledges the establishment or incorporation of the business on a specified date, confirming compliance with all legal requirements.
   4. Memorandum and Articles of Association: Legal documents outlining the company's objectives, rules, regulations, structure, share capital, and management structure are crucial. Entrepreneurs must ensure that the Memorandum and Articles of Association (M&AA) comply with Singapore's Company Law and are signed by all shareholders. Submission to ACRA during the registration process is mandatory.
   5. Details of Company Secretary: Within six months of incorporation, every company must appoint a Singapore resident as a company secretary. The appointed secretary should possess the necessary knowledge and experience, and entrepreneurs can engage a professional company secretary to fulfil this requirement.
   6. Business Licenses and Permits: Certain business activities necessitate specific licenses and permits before legal operations in Singapore. Entrepreneurs should research and obtain applicable licenses and permits for their business activities before commencing operations.
   7. Details of Bank Account: Entrepreneurs must furnish the company's bank account details during the registration process. The account should be opened with a local Singapore bank in the company's name.
8. Registration Fees: Setting up a company in Singapore incurs registration fees, encompassing a name reservation fee, incorporation fees, and a charge for issuing the Certificate of Incorporation. The overall cost of company registration in Singapore fluctuates based on the specific type of company and the requisite services.

Benefits of Registering a Company in Singapore

• Strategic Location: Positioned in the heart of Southeast Asia, Singapore is a global trade hub with excellent connectivity, making it an ideal location for businesses seeking global expansion.
• Business-Friendly Environment: Singapore's business-friendly environment, marked by a low tax rate, streamlined regulations, and supportive government policies, ranks it as one of the most accessible places for global business.
• Protection of Intellectual Property: Singapore's robust legal system ensures the protection of intellectual property, with strict laws against piracy, counterfeiting, and trademark infringement.
• Skilled Workforce: Singapore boasts a highly skilled and educated workforce, emphasizing education and training, with a substantial pool of experienced professionals in diverse fields.

Registering a private limited company in Singapore is a straightforward process when adhering to the necessary steps and requirements. Leveraging the strategic advantages offered by Singapore, including its location, business-friendly environment, intellectual property protection, and skilled workforce, can be particularly advantageous for entrepreneurs seeking to expand globally. UBCS stands ready to facilitate a quick and secure start to your business in Singapore.

Contact UBCS today to discuss how to proceed with your company formation in Singapore – LET’s TALK.