Company Incorporation Singapore Gets You Private Limited Company & Success
The suitability of a private limited company for the purposes of trading is immeasurable. It is a form of a limited liability company. It is the most used business structure for the company incorporation Singapore by local and foreign entrepreneurs. It limits the risk born by the owners (shareholders or members) of the company to the capital they have invested in shares.
A Singapore private limited company is easily identifiable as its name contains terms like “Pte Ltd” or “Private Limited” in its name. The use of such terms is mandated by ACRA (Accounting and Corporate Regulatory Authority), the Company Registrar of Singapore.
Why Should You Incorporate a Private Limited Company?
A private limited company has a separate legal existence from its owners. It can buy or sell properties in its own name. It can sue and be sued by other entities. In short, it has the rights of a natural person. It is a characteristic much favored by the entrepreneurs interested in Singapore company registration.
The private limited company is a dynamic and scalable business structure. The lower rates of corporate income tax and availability of various tax exemption schemes, rebates, and incentive that these companies can get, attract the entrepreneurs and corporate to Singapore.
Minimum Requirement of a Company Incorporation Singapore
- At least 1 shareholder
- At least 1 Company Secretary
- At least 1 local resident director
- Minimum S$1 of paid-up capital
- Registered address for the Singapore office
Registering a Private Limited Company
ACRA insists to the foreigners to take professional help from Singapore incorporation services. These firms employ specialists that assist the entrepreneurs in their Singapore company incorporation. The incorporation process is simple and consists of only 2 procedures; registration of company name and registration of the company.
BizFile+ and SingPass ID
The ACRA also functions as the Company Registrar of Singapore. It is very strict about maintaining unique company names and in giving each a distinct identity. It has also provided an online portal, BizFile+. It is necessary to visit this website and determine the availability of the name for the proposed company which your incorporation expert can do for you. The entrepreneurs need to shortlist and pass on a list of 3 – 4 names for the proposed company, to their incorporation agent.
In addition, the entrepreneurs should also give their details and incorporation documents to the professional assigned to them by the service. The Bizfile+ website asks for SingPass ID at the time of login. Singapore Personal Access (SingPass ID) is necessary to access all the e-services made available by the Singapore governments and other agencies.
Time Required for a Company Registration Singapore
The Company Registrar has the authority to reject the company name proposed by the entrepreneur on various grounds. After the Company Registrar approves the company name, it is time to apply to the ACRA for the registration of the company. It takes only 1-3 days to successfully set up a Pte Ltd company in Singapore.
Business Activities of the Company
Singapore government keeps a strict control over a few business domains. The approval of applications for the registration of businesses in the bank, school, restaurant, financial institutions, and insurance domain takes time. The concerned ministries review the applications for these businesses and the process takes time.
Minimum Paid-up Capital
The minimum amount of the paid-up capital for a Singapore company registration is S$1. However, it is advisable to arrange for more capital and deposit it in the corporate bank account at the earliest opportunity. The entrepreneurs holding EntrePass need to arrange S$50,000 as the minimum paid-up capital at the time of Singapore company incorporation.
A private limited company is the best proxy that the investors or the entrepreneurs could have. It can have 1 – 50 shareholders. The Company Act of Singapore, Chapter 50, permits an individual or a corporate entity to own 100% of its shares.
ACRA demands the relevant details of the shareholders of the company. They also need to include the amount of their paid-up capital. The corporate shareholder also needs to submit their details as per the ACRA’s recommendations.
A Singapore citizen, permanent resident, an Employment pass, or a Dependent’s pass holder can act as the local resident director. If the need arises, a foreigner can also acquire an Employment pass or Entrepass and be the director of the company.
After the successful company incorporation Singapore, it is necessary to open a corporate bank account. The task needs the physical presence of the company owners. They need to visit Singapore and sign the relevant documents. Most of the Singapore incorporation services assist with it. They also help newly formed companies in ordering Company Seals and Stamps and in applying to the concerned authorities for the permits and licenses.