Requirements For Company Formation In Singapore| All Guidance

Incorporating a business in Singapore is one of the smartest decisions you can make. The country is a top destination for investors because of its favorable business environment.

Moreover, the government provides invaluable support to both local and foreign investors.

The country’s pro-business tax regime and ease of doing business have seen it rank highly in most investment indices. For this reason, business enthusiasts are looking for company formation in Singapore.

The Accounting and Corporate Regulatory Authority (ACCRA), which is empowered by the Companies Act, Chapter 50, governs all business registrations.

The entire process is online, with clearly outlined steps, requirements, and fees.

However, this guide explains everything you need to know about company formation in the country. 

Why For Company in Singapore?

Singapore has emerged as one of the prominent business destinations not only in Asia but around the world.  

For that reason, business enthusiasts from different countries are looking for a company formation in Singapore.  

Here, we provide quantifiable figures, or economic indicators, to highlight Singapore’s evolution as a top business destination.  

Singapore’s GDP has been thoroughly consistent over the years, enabling it to achieve the status of a global economic powerhouse.

Despite the challenges hurled by the COVID-19 pandemic in 2022, the GDP contracted by 5.4%.  

In addition, Singapore’s business-friendly landscape has enabled it to attain the status of a business-friendly country. Over the years, it has grown itself as an industry-friendly nation.

The country attracted an FDI of 6 Bn euros back in the year 2020. It is an indicator of strong investor confidence.  

Even Statista says that Singapore received U.S. investment amounting to approximately 309.44 billion U.S. dollars.  

Hence, these figures vindicate Singapore’s capacity to hold foreign investors.  

Types of Business in Singapore

Before we start the discussion on company formation in singapore, you must understand the basics. Yes, here we mean the different types of business structures, basically.  

There are different business structures you can choose from: 

• Sole Proprietorship

• Partnerships 

• Private Limited Companies (Pvt Ltd)

• Public limited company 

In addition, there are some additional business structures for foreign companies: 

• Subsidiary company 

• branch office 

• Representative office 

The private limited company is the most popular form of business structure compared to sole proprietorships and partnerships.  

The company is a separate entity from the shareholders, and you’re not personally liable for liabilities. 

Besides, your new company also enjoys tax incentives and tax exemptions.

However, as a more formal business recognized by financial institutions, you’ll find it easier to raise capital.  

Transfer of ownership is also easier in a private limited company, and there’s guaranteed business continuity even if management or shareholders leave. 

If you want to consider forming a company in Singapore, the best choice is a private limited company (Pte Ltd). 

Requirements For Company Formation In Singapore

Before you apply to ACRA to start the company formation process, here are some requirements for company formation: 

• Minimum initial paid-up capital of S$1 

• At least one shareholder and a maximum of 50 

• One local resident director (Singapore Citizen, Singapore Permanent Resident or EntrePass holder) 

• At least one (1) Company Secretary within six months from the registration date of the company 

• Registered local office address (a residential or commercial address, but not a P.O. Box.) 

For foreigners, the additional requirements are: 

• Appoint a registered filing agent to help you through the company registration process. (Under Singaporean law, non-resident individuals or entities can’t self-register a company) 

• Appoint a local director (a resident of Singapore. Singaporeans, Permanent Residents, and EntrePass holders) 

For the company formation process, there are two fees required ACRA: 

• Name approval fee- S$15 

• Company Registration fee- S$300 

The Company Registration Process

Now that you appreciate the initial requirements for a company formation in Singapore, here’s a step-by-step review of the process: 

1. Name Reservation

Start with an inline business name application through Singapore’s Accounting and Corporate Regulatory Authority (ACRA).  

Name reservation is a simple process that takes less than an hour unless the name includes industries such as banks, law, media, or finance.  

However, in such a case, the process might take longer as another government body will have to check the name. 

ACRA can reject the company name if it’s not unique, if it’s vulgar, or contains copyrighted material.  

Thus, the authority reserves the name for 120 days and then releases it to other investors. 

2. Documents For Company Incorporation

Once you have the business name, you can now apply for the business incorporation. However, you need to produce some documents for the company’s formation in Singapore. They include: 

• Approved company name and registered with ACRA.

• Business description. 

• Registered local address. 

• Signed Consent to Act as a Director for each director. 

• Consent to Act as Company Secretary signed by the company secretary. 

• Shareholders, directors, and company secretary particulars. (Residential address proof, Brief professional background 

• Memorandum & Articles of Association, Certificate of Incorporation (for foreign companies).

• Singapore identity card for Singapore residents.

• A copy of passport & proof of residential address (overseas) for foreign individuals. 

3. Submission Of Application To Acra

Once you confirm all documents are in order, the last step is the actual application through BizFile+, ACRA’s online portal.

Your filing agent will be in charge of the process and will guide you through every step until you receive confirmation about the business registration.

ACRA emails confirm a successful application, and the company’s registration number and date are in it.  

This is your certificate of incorporation in Singapore for all official transactions.  

For a fee, you can request a hard copy of the certificate from ACRA. 

Using A Professional Agent For Company Formation

The company formation process in Singapore is easy but also detailed. You need multiple documents, and this is where the input of a company incorporation service comes in handy.

For a foreigner, the professional services offered by these filing agents save you a lot of trouble.

You don’t have to travel regularly to complete the process. Also, the companies offer a comprehensive range of custom company formation solutions.

Wrapping Up

Registering a company in Singapore promises great rewards for entrepreneurs. There are many MNCs and other foreign-owned businesses thriving in the country, and you can join them too. With this insight into company formation in Singapore, you’re now ready to get started on an exciting investment journey. 

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