Singapore has a huge reputation for being one of the biggest economic hubs in the world. This reputation stemmed from the fact that the country has the most successful economy. This economy keeps thriving because of tourism, financial services, a cargo seaport, and machinery and electronics manufacturing experts. Besides, it’s a thriving economy because of which many indigenes and even non-indigenes consider establishing a company in the country.
As Singapore has very few natural resources to export or depend on, the government decided to make initiatives and extensive trade networks that have attracted the attention of many companies, big or small, from different parts of the world. This attractiveness of the initiatives and other advantages such as a flexible immigration policy, a politically stable environment, and an advanced landscape technology are the major reasons many businesses are looking to establish a company in Singapore.
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Like every other civilized and developed country, there is the need for every company to be registered and incorporated under the business and economic laws. Certain perks are reserved once a company is registered, including incentives and certain tax and capital gains extensions. Of course, you want the goodness that comes with registering your company in Singapore. Â
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This article is a perfect place to start. By following the requirements and steps that will be listed in this article, your company is on its way to being incorporated in Singapore.
Required knowledge and information before registering a business for incorporation
Before you can register your company with the Singaporean government and economy, there are certain things you have to put in mind. You have to prepare certain information for whenever you have to submit your application for this registration and incorporation. These requirements are almost the same for both indigenes and foreigners alike. However, there are slight differences. A foreigner will need local experts who work in the fields that the company will be offering services in. They would also need locals who are professionals in the corporate industry and can maintain a local office.
Whether you’re a foreigner or an indigene, the incorporation of private limited companies in Singapore has certain requirements listed next in the article.
Company’s desired name
You can’t register a company for incorporation without choosing a name for it. As it is, choose a name suitable for the company, and at the same time, it must not be identical to that of an existing company. It must also not contain anything explicit or prohibited in the country. Â
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After choosing a name, you must submit a name application on the online company registration and filing portal known as Bizfile. Certain terms require consultations with governing bodies before approval. After the company name is approved, you have 120 days to complete the company’s incorporation.
Choosing the company’s principal activities
The reason any enterprise is established is often reflected in its primary activities. A company’s principal activities are the major activities and projects carried out to generate the most added value. When registering to incorporate your corporation, you must list at most two principal activities it will be involved in. These activities can be chosen from the SSIC set out list.
Company’s shareholders and directors
A company can’t work without a board or group of people to control and guide its major activities and work path. Hence, the need for shareholders and directors when registering the company. The criteria for having directors and shareholders include having at least one director being a local resident of Singapore.
A director or shareholder must be a person of sound mind over 18 years, has not been convicted of fraud or dishonesty, must not be an unsuitable director of a bankrupt enterprise, must not be an undischarged bankrupt person by a Singaporean or foreign court etc. These shareholders and directors will also have to release their personal details.
Registered office
What’s the point of establishing a company in Singapore if it doesn’t have space? A registered office space or area is needed when incorporating a company. An office for an enterprise can be obtained by renting a space, applying for a home office license, or opting to run a virtual office. Each of these advantages has its cost and benefits. However, regardless of the kind of office, a company’s registered office must be open for at least five hours during business hours on each business day. It must not be a P.O. Box and must be a physical office address in Singapore.Â
Constitution Documents
As the saying goes, where there’s no law, there’s no offense. This is why there are company constitutions for each established company filled with the memorandum and articles of association signed at the early stages of establishment. These are essential legal documents that must be submitted after careful review. Â
Conclusion
Due to its economic activities and successes, many companies and business owners are willing to establish their enterprises in Singapore. This is why this article provides a guide that leads you through various useful steps of incorporating your company.