How to Register a Company in Singapore in 2023
Are you searching for reliable data on company registration Singapore? Yes, that is the way to go. Singapore is an excellent destination for newbie business owners to start their new companies.
Each year, as many as 3,000 Indian apply to Accounting and Corporate Regulatory Authority (ACRA) to set up company in Singapore. Flipkart and InMobi are two prime examples.
Let us see why this city-state exerts such a magnetic pull on the business owners. Why business registration Singapore is a favourite topic?
Factors that Attract Entrepreneurs to Singapore
Singapore authorities have put a lot of thought into formalising policies. You see, Singapore ranks high for the ‘Ease of Doing Business’ indicator. The corporate tax rate is only 17%, and the dividends are tax-free. Policies like these make company registration Singapore a lucrative proposition for entrepreneurs.
- Allows 100% foreign shareholding in the local companies
- Has low corporate tax rates, tax-free dividends, etc
- Provides tax exemptions, benefits, and schemes to startups
- Has a stable political environment
- Has world-class infrastructure like communication networks, harbours, and airports for foreign connectivity
Company Registration Singapore Process
First, you must fulfil the requirements listed below before applying to ACRA for business registration Singapore.
- $1 in minimum initial paid-up capital
- At least 1 local director
- At least 1 shareholder
- At least 1 company secretary
- At least 1 auditor
- A registered physical local office address
- Constitution of the company (M&AA)
Company Secretary: A company secretary takes care of lodging and filing all required documents and information as part of statutory compliance.
Director: You can hire many directors for your company. However, one of them must be a local/resident director, ordinarily a resident of Singapore. You can employ Singaporeans, Permanent Residents, Employment and Entrepreneur Pass holders in this capacity.
The directors, shareholders and secretaries must consent to act in their respective capacities. They have 4 months to do so online.
3 Steps to Set Up Company in Singapore
As a foreigner, you cannot self-register your Singapore company. You need to hire a Registered Filing Agent for the task.
1#: Get ACRA’s Approval for Company Name
Provide 3-5 company names to them. They will check, pay $15, and register the available one with ACRA for you for 60 days.
Ensure that the company name is:
- Not vulgar or obscene
- Does not violate copyrights or trademarks
2#: Singapore Company Incorporation Documents
Here is a list of documents you need to submit to your agent to kick-start the process.
- Company name approved by ACRA
- Details of business activities
- Registered local company address
- Details of shareholders, directors, & company secretary
- Foreign Individuals: A copy of their passport and proof of residential address (overseas)
- Foreign Companies: Company constitution, Certificate of incorporation
3#: Apply to ACRA to Register a new Company
With these details in hand, your provider of services for small company registration Singapore initiates the process. They visit the BizFile+ portal & upload these documents along with your application to register a new Singapore company.
ACRA takes only 1-3 days to process your application for company registration.
Cost of Company Registration Singapore
To start a new company, you only need to arrange $1 in initial paid-up capital. Later on, you can increase it.
Singapore company registration cost varies depending on your services provider, business activities, business structure and the services you need.
However, many providers provide a bundle of many services in their promotional Singapore company incorporation package. These are affordable and reduce the initial outlay of money.
The cost of business registration Singapore includes $315 in ACRA’s fee for company name registration ($15) and processing of the application ($300). It may also include fees for the secretary, registered office address and nominee director for the first year.
Many agents bundle many services in their promotional Singapore company incorporation package. These packages help reduce the initial outlay of money. And in addition, your provider may ask you for a refundable security deposit.
The alternative is to hire an acquaintance as the local director for your company. However, like other company directors, the local or nominee director is responsible for the company’s compliance.
Work Passes to Relocate to Singapore
To relocate and work in Singapore, you will need a work visa. You can apply to the Ministry of Manpower (MoM) for an Entrepreneur Pass. Or, ask your company secretary to MoM for Employment Pass.
Either of these passes enables you to act as the local or resident director. You can replace your nominee director and save money.
The official cost for obtaining both of these passes is as follows:
- $105 in application processing fee
- $225 in pass issuance fees
- $30 for Multiple Journey Visa (if needed)
You will need to pay the official fees to acquire licenses and permits. Then, there are expenses related to employees, office rent, utilities, telephone, electricity, storage space, etc.
Singapore is a valuable access point to the southeast Asian markets. As an entrepot, it serves more than 600 harbours globally. It is an essential link in the global supply chain. You only need 8-10 hours by air to reach the emerging markets of Asia.
The experts working for your agent know the process for company registration Singapore inside out. They advise you on the risk and legal aspects of starting a new business. They take care of the paperwork, reduce stress, and save valuable time.