subject: Steps to Register a Singapore Company [print this page] Steps to Register a Singapore Company Steps to Register a Singapore Company
A Singapore company is a business structure that stands on its own as a legal entity separate from the shareholders and directors. With this arrangement, the shareholders and directors have "limited liability" on the financial losses and debts of their company, meaning, their personal assets cannot be used to pay off the duties and liabilities related to business.
There are two basic types of Singapore company: the private limited company which is allowed to have one and up to a maximum of 50 shareholders (individuals or corporate entities) and the public limited company which is allowed to have more than 50 shareholders.
As the name suggests, a public limited company can invite the public to inject funds through investing and trading in the Singapore stock market. This is not the case in a private limited company in which the shareholders can only raise funds among themselves or through bank loans.
Despite the limit on raising funds, a private limited company is usually ideal on medium- to large-scale enterprises because of the tax advantages and other corporate incentives offered by the government.
Private limited companies that are eligible for these advantages are called exempt private companies.
But to become an exempt private company, it should meet these following requirements:
It should have no more than 20 shareholders who are a natural person and not a corporate entity.
It should practice its management and control in Singapore.
Meanwhile, this is a guide to entrepreneurs who want to register a Singapore company or convert their business into a company:
1. Submit the proposed name to the Registrar of Companies (ROC). The company name should be unique, does not violate the trademark of other organizations, and does not connote vulgarity and indecency.
2. Open a company bank account.
3. Submit the Memorandum and Articles of Association to ROC that will explain the intent to incorporate and include the corporate bylaws governing the internal management of a company.
4. Follow the provisions under the Singapore Companies Act requiring the appointment of at least one resident director, qualified secretary, and shareholder; and the registration of an office address where the authorities can send their notification letters to a company.
a resident director may be a natural citizen, permanent resident, or foreigner who has been issued with EntrePass, Employment Pass, or Dependant Pass with a residential address in Singapore.
there should be at least one shareholder (or a maximum of 50) who may be an individual or corporate entityboth local and foreign.
5. Submit the start-up documents and other certifications required by ROC.
