How to set up company in Singapore

Incorporating a Singapore Company is a relatively straightforward process, especially compared to many other countries. Here's a step-by-step guide to help you understand the process:

• Choose Your Business Structure: Decide on the type of business entity. The most common type for foreign entrepreneurs is a Private Limited Company due to its scalability, limited liability, and professional image.

• Company Name Approval: Before registering your company, you need to get your company name approved by the Accounting and Corporate Regulatory Authority (ACRA). The name should be unique, meaningful, and free from any trademarks or existing company names.

• Prepare Company Registration Documents: You will need the following documents:

• A brief description of business activities.

• Details of Singapore registered office address.

• Particulars of shareholders, directors, and company secretary.

• Memorandum and Articles of Association (MAA).

• Appoint a Director: At least one director who is a resident in Singapore is mandatory. A resident can be a Singapore citizen, a Singapore permanent resident, or a person who has an Employment Pass/Dependant Pass with a residential address in Singapore.

• Appoint a Company Secretary: Within six months of incorporation, you must appoint a qualified company secretary who is a resident of Singapore.

• Share Capital: Decide on your company’s share capital. The minimum paid-up capital for registration is S$1, but it can be increased anytime after incorporation.

• Register with ACRA: You can register your company with ACRA online via the BizFile+ portal. This process is typically quick, often completed within hours if there are no complications.

• Open a Corporate Bank Account: After your company is registered, you can open a corporate bank account in any of the major banks in Singapore or international banks.

• Licenses and Permits: Depending on the nature of your business, you may need to obtain specific licenses and permits before commencing operations.

• Goods and Services Tax (GST) Registration: If your company's annual turnover exceeds S$1 million, you must register for GST, which is similar to Value Added Tax (VAT) in many countries.

• Understand Ongoing Compliance Requirements: Be aware of ongoing legal, tax, and regulatory compliance requirements, such as annual filing with ACRA and the Inland Revenue Authority of Singapore (IRAS).

• Hiring Staff: If you plan to hire employees, understand the local employment laws and practices. You may also need to make contributions to their Central Provident Fund (CPF), a compulsory pension fund for Singaporean employees.

• Consider Professional Assistance: Given the various legal and administrative aspects involved, it's often advisable to engage a professional firm for assistance with the incorporation process, especially if you're not familiar with Singapore's corporate regulations.

Remember, while the process is streamlined, it's important to thoroughly understand and comply with local laws and regulations. Non-compliance can result in fines or more severe penalties.

T.K is an avid writer on business topics, he writes for Koh Management