When incoporation is completed, the company will be issued the following:

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1. Company Business Profile

The company business profile will include the Unique Entity Number (UEN) which companies can use to start doing business. The document also includes the company name, registration date, paid up capital, registered address, details of shareholders and directors.

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2. First Board Resolution 

This resolution is to appoint the shareholders and directors

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3. Bank Account opening resolution

This is used for account opening purposes, some banks may not require this.

This to pay attention to for the post registration period:

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1. Annual Return filing

Companies must file annual return one month after AGM

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2. Annual General meeting (AGM)

All companies must hold its AGM every calendar year, during the AGM , shareholders will approve the financial statements and discuss matter with regards to the Financial statements of the company

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3. Tax Filing

Tax is filed to IRAS. The deadline for filing corporate tax is November 30.

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CALL +65 98638665 if you need a quote or Email Tommyksh@shkoh.com.sg

 

Bank Account Opening

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We work closely with many banks and we can assist you with this process. We will be able to assist with resolutions that the bank might need. Also to receive the M&AA from us to provide to the bank for update usage and opening of new account after you are done with your Singapore Incorporation Services steps.

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If you have questions on how best to structure your new business and is also wondering how to get your shareholding organized, you could schedule a consultation session with our consultants first before you start your company incorporation process. We look forward to working closely with you to achieve your business growth. 

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If you are keen for Singapore Incorporation Services, speak to us your Singapore Company Set Up Specialist. Register your Singapore business today!

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Understanding Singapore's Business Structures: Which One is Right for You?

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Singapore has earned a reputation as one of the most business-friendly and economically vibrant countries in the world. For entrepreneurs and small business owners, it offers a plethora of opportunities and a welcoming environment for company formation. However, before you embark on your entrepreneurial journey in Singapore, it's crucial to understand the different business structures available and choose the one that best suits your needs.

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The Main Business Structures in Singapore

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1. Sole Proprietorship: This is the simplest form of business structure in Singapore, and it's owned and operated by a single individual. While it's easy to set up, it also means that the owner is personally liable for all business debts and obligations. This structure is often chosen by freelancers, consultants, and small traders.
    

2. Partnership: A partnership involves two or more individuals or entities (partners) coming together to manage and operate a business. Partnerships can be divided into general partnerships (where partners share both profits and liabilities) and limited partnerships (where some partners have limited liability). Partnerships are a good option for businesses with multiple owners who want to share responsibilities.
    

3. Limited Liability Partnership (LLP): An LLP combines the benefits of a partnership with limited liability protection. In an LLP, partners are not personally liable for the debts and liabilities of the business. This structure is often preferred by professional service providers like law firms and accounting firms.
    

4. Private Limited Company (Pte Ltd): The most common and versatile business structure in Singapore, a private limited company is a separate legal entity from its shareholders. Shareholders have limited liability, and the company can raise capital by issuing shares. Pte Ltd companies are suitable for SMEs of all sizes and industries.
    

5. Public Company Limited by Shares: This structure is similar to a private limited company but can have more than 50 shareholders. Public companies are subject to stricter regulatory requirements and can raise funds from the public by issuing shares.
    

Choosing the Right Structure
 

Selecting the right business structure is a crucial decision that can impact your business's legal, financial, and operational aspects. Here are some factors to consider:
 

1. Liability:

• Personal Liability: If you want to limit personal liability, it's advisable to choose a structure like an LLP or a private limited company. This ensures that your personal assets are protected in case the business faces financial difficulties.

2. Ownership and Management:

• Solo or Partnership: If you're the sole owner, a sole proprietorship might suffice initially, but keep in mind the personal liability aspect. If you have partners or plan to bring in investors, a company structure may be more suitable.

3. Taxation:

• Tax Benefits: Each business structure has its own tax implications. Companies may enjoy tax incentives and exemptions, making them an attractive choice for SMEs. Consult with a tax advisor to understand the specific benefits.

4. Funding:

• Capital Requirements: If you require significant capital for your business, a private limited company is often the preferred choice as it allows you to raise funds by issuing shares.

5. Regulatory Compliance:

• Compliance Requirements: Different structures have varying levels of regulatory requirements. Companies, especially public ones, have more stringent reporting and compliance obligations.

6. Long-Term Goals:

• Future Growth: Consider your long-term growth plans. If you aim to expand locally and internationally, a private limited company offers more flexibility and credibility.

7. Industry and Reputation:

• Industry Norms: In some industries, such as finance and legal services, specific structures like LLPs are more common and may enhance your professional image.

8. Exit Strategy:

• Exit Planning: Think about your exit strategy. If you plan to sell the business or take it public in the future, starting as a private limited company may simplify the process.
   

Seeking Professional Guidance
 

Given the complexities involved in selecting the right business structure, it's advisable to seek professional guidance from a corporate services provider like Koh Management or a legal advisor. They can help you navigate the legal requirements, tax implications, and compliance obligations associated with each structure, ensuring that your business is set up for success from the start.

Conclusion
 

Choosing the appropriate business structure is a crucial step in your journey as an entrepreneur in Singapore. It can significantly impact your business's growth, risk, and regulatory obligations. Careful consideration of your goals and circumstances, coupled with professional advice, will help you make an informed decision. Ultimately, whether you opt for a sole proprietorship, partnership, LLP, or private limited company, Singapore offers a conducive environment for business success.

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FAQ

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Q1: What are the key benefits of incorporating a company in Singapore?

 

A1: Incorporating a company in Singapore offers several advantages. Firstly, it provides limited liability to shareholders, meaning their personal assets are protected. Singapore is known for its attractive tax regime, with low corporate tax rates and tax incentives for startups. It also offers political stability, a strong legal framework, and a business-friendly environment. Singapore-based companies can access a global network of double taxation treaties and benefit from a well-developed infrastructure. Furthermore, the city-state's reputation for financial integrity and its strategic location in Asia make it an ideal hub for international business expansion.

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Q2: What is the minimum capital requirement for incorporating a company in Singapore?

 

A2: Singapore does not have a minimum capital requirement for most companies. You can start a private limited company with as little as SGD 1 as paid-up capital. This flexibility makes Singapore an attractive destination for startups and small businesses. However, it's essential to note that capital requirements can change over time, so it's advisable to check with the Accounting and Corporate Regulatory Authority (ACRA) or a professional incorporation service for the most up-to-date information.

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Q3: How long does it take to incorporate a company in Singapore?

 

A3: The process of incorporating a company in Singapore is efficient and typically takes 1-2 business days. However, this duration can vary depending on several factors, including the complexity of your business structure, the accuracy and completeness of your documentation, and government processing times. Engaging a professional incorporation service can expedite the process and help ensure all requirements are met promptly.

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Q4: Do I need to be physically present in Singapore to incorporate a company?

A4: No, you do not need to be physically present in Singapore to incorporate a company. Singapore allows foreigners to register and own 100% of a company without requiring their presence in the country. You can engage a local incorporation service or a corporate service provider to assist you with the incorporation process, making it convenient for overseas entrepreneurs to establish their businesses in Singapore.

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Q5: Are there any ongoing compliance requirements for Singaporean companies?

 

A5: Yes, Singaporean companies have certain ongoing compliance requirements. These include filing annual returns, holding annual general meetings (AGMs), maintaining proper accounting records, and submitting financial statements to ACRA and the Inland Revenue Authority of Singapore (IRAS). Failure to comply with these obligations can result in penalties or legal consequences. It's advisable to engage a corporate secretary or compliance expert to ensure your company remains compliant with Singaporean regulations.

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Q6: Can foreigners own 100% of a Singapore company, and are there any restrictions on foreign ownership?

 

A6: Yes, foreigners can own 100% of a Singapore company. There are generally no restrictions on foreign ownership in most industries. However, there are exceptions, such as banking and finance, where specific licenses may be required. Additionally, some businesses may require approval from regulatory authorities. It's crucial to research and understand any industry-specific regulations that may apply to your business before incorporating in Singapore.

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Q7: What are the tax incentives available for Singaporean companies?

 

A7: Singapore offers various tax incentives to encourage business growth and investment. These include the Productivity and Innovation Credit (PIC) scheme, which provides tax deductions or cash payouts for qualifying expenditures in innovation and productivity improvements. The Development and Expansion Incentive (DEI) and Global Trader Program (GTP) offer reduced tax rates for specific industries and activities. Additionally, Singapore has a network of double taxation treaties to prevent double taxation on income earned abroad, making it an attractive location for international businesses.

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Q8: Can I use a virtual office address for my Singapore company's registration?

 

A8: Yes, you can use a virtual office address for your Singapore company's registration. Many companies offer virtual office services in Singapore, providing a prestigious business address and mail forwarding services. This option is especially useful for overseas entrepreneurs who do not have a physical presence in Singapore but want a professional address for their company's registration. However, it's essential to ensure that the virtual office provider is compliant with ACRA's regulations for company registration purposes.

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Q9: What are the types of business structures available for incorporation in Singapore?

 

A9: Singapore offers several business structures, including a Private Limited Company (Pte. Ltd.), Sole Proprietorship, Partnership, and Limited Liability Partnership (LLP). The most common choice for foreign entrepreneurs is the Private Limited Company, which provides limited liability and a separate legal entity for the business. It's ideal for most businesses due to its scalability, limited liability protection, and ease of raising capital.

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Q10: What is the role of a local director or resident agent in Singapore company incorporation?

 

A10: A local director or resident agent is a requirement for incorporating a company in Singapore. Every Singapore company must have at least one local director who is either a Singaporean citizen, Permanent Resident, or an Employment Pass holder. If you don't have a local director, you can engage the services of a professional firm to provide a nominee director to meet this requirement.

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Q11: Are there any industry-specific licenses or permits required for certain businesses in Singapore?

 

A11: Yes, some industries in Singapore require specific licenses or permits to operate legally. Examples include financial services, healthcare, education, and food establishments. These licenses ensure that businesses comply with sector-specific regulations and maintain high standards. The requirements vary depending on the nature of the business, so it's crucial to research and obtain the necessary permits before commencing operations.

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Q12: How do I open a corporate bank account in Singapore for my newly incorporated company?

 

A12: To open a corporate bank account in Singapore, you will need to provide the necessary documents, such as your company's Certificate of Incorporation, Business Profile, and the resolution to open a bank account. Different banks may have slightly varying requirements, so it's advisable to contact the bank you intend to use and confirm their specific requirements. It's also recommended to consult with a corporate service provider as they can facilitate the account opening process.

 

Q13: Can I change my company's name after incorporation in Singapore?

 

A13: Yes, it is possible to change your company's name after incorporation in Singapore. The process involves obtaining approval from ACRA for the new name, updating the company's Memorandum and Articles of Association, and updating all official documents and records to reflect the new name. It's essential to ensure that the new name complies with ACRA's naming guidelines and does not infringe on any trademarks. The change of name must be approved by the company's shareholders.

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Q14: What are the advantages of engaging a professional incorporation service in Singapore?

 

A14: Engaging a professional incorporation service in Singapore offers several benefits. These services have extensive knowledge of Singapore's regulatory requirements and can streamline the incorporation process, ensuring accuracy and compliance. They can also provide guidance on choosing the right business structure, assist with the preparation of necessary documents, and offer ongoing compliance and corporate secretarial services. This frees up your time to focus on growing your business while experts handle the administrative aspects.

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