A Comprehensive Guide for Singapore Business Formation

While considering the relocation and registration of a company in Singapore, it is of the utmost importance to keep in mind that many of the companies, which are based in that area are registered as private limited companies that are called by the name of the Private Limited Liability Companies in that region. Such a company is an individual legal entity, the shareholders of which are not liable for the debts of the company beyond the share capital’s amount, which they have contributed. Hence, it is called limited liability. As per the Singapore Companies Act, any and every person, who belongs to the age group of 18 years and above are eligible for registering a Singapore company. It does not matter whether the business entrepreneur is a local person or a foreigner.

A private limited company based in Singapore, which is quite properly structured is a corporate body that is quite tax efficient as well and thus, this form is considered to be amongst the most common kind of business entity, which is registered in the place of Singapore.

However, for Singapore business formation, one needs to have a detailed overview about the different requirements of registering a company. Apart from this, the concerned person even needs to know the procedure as well as the timeline, which it necessitates. Just like the majority of jurisdictions, Singapore has got a set of ongoing as well as the initial requirements for regulatory compliance so as to start and operate a company in Singapore. Hence, both foreign as well as local entrepreneurs are suggested to engage the various services of any and every professional firm to serve the purpose.

Now, before going for a Singapore business formation, following are some of the key facts, which one needs to know:

• Company Name: It is very crucial to get an approval for the name of the company before incorporating the company in Singapore.

• Directors: It is mandatory to have at least one residential director in the company, which one is trying to set up in Singapore. The number of extra local and foreign directors that a company in Singapore can appoint does not have any upper limit. And one of the most important things is that the director needs to be within the age group of 18 years and above and neither is bankrupt nor convicted for any kind of malpractice. It is not at all necessary for a director to be a shareholder of the company though. So, non-shareholders can even be appointed as directors of the company in concern.

• Shareholders: Any and every private limited company in Singapore can have minimum 1 and maximum 50 shareholders. However, a shareholder and a director can both be the same as well as different people. A shareholder can be an individual or a different legal entity like a different trust or company as well. Singapore allows 100 % foreign as well as local shareholding. In fact, be it issuing new shares or transferring the existing ones to a different person anytime post the entire process of Singapore business formation has been completed.

This article provides some important information about Singapore business formation.

Author Bio:

Lorrie Catherine is a freelance copywriter specializing in the business start-up industry, currently writing on Singapore business formation from Contactoneps.com.sg. Contactoneps is a Singapore based company that provides company incorporation, corporate secretarial, human resource management for start-ups and small to medium enterprises.