In Singapore, it is clear that of the five diverse business entity types, the most flexible and common business to set up is the Private Limited Company. It is mandatory that all companies be registered with the Accounting and Corporate Regulatory Authority (ACRA) and as such, are subject to the companies act.
What is a Private Limited Company?
It is a company limited by its shares and is a separate legal entity from its shareholders. A Private Limited Company in Singapore exempts its shareholders from responsibility for any losses incurred above the amount of their share capital.
What are the minimum setup requirements?
- An office address situated in Singapore.
- One company secretary
- One resident director
- Minimum of one shareholder
- At least S$1 paid-up share capital
Documents required to start a private limited company in Singapore
Choose a company name
To build your brand, it is important that you carefully choose the name of your company. As a way of promoting your business, make an attempt to include the activities of your business.
Directors details
It is required that the company has a minimum of one director who is a resident in Singapore.
Companies registered address
For a business to be incorporated in Singapore, a registered address is required. Some types of businesses may be allowed to use a residential address needed. For more information, visit Visa Express to learn more about this procedure.
Describe what you do
It is important that you use the Singapore Standard Industrial Classification Code (SSIC) 2010 to select your company’s activities.
Shareholding pattern
In Singapore, it is required that a company be registered with at least $1 paid-up capital. It must also issue a minimum of one subscriber share to its initial members. The share capital issued is the totality of the existing shares multiplied by the nominal value of each share.
Secretary particulars
A Company Secretary must be appointed within six months of its incorporation. It is required that such an individual be knowledgeable in the field and must make sure that all regulatory directives are being adhered to.
Shareholders agreement
It is important to define the duties and roles of each shareholder to avoid disputes. It is advised that as the initiator of the business, you have the controlling rights to protect your interest.
Shareholders details
For a private limited company, the Companies Act allows for up to 50 shareholders. A minimum of one individual or corporate shareholding is needed. Absolute foreign or local shareholding is also permitted.
Appoint an auditor
It is required that all companies in Singapore must appoint an auditor with 3 months of incorporation. For a company to be exempted, the company will have no corporate shareholder and must have fewer than 20 individual shareholders. It should also be noted that its annual turnover must be less than $5 million.
Memorandum and Articles of Association (MAA)
A standard MAA document that applies to all situations is usually provided for by the Singapore Company Registrar. It states the rules that guide the internal running of the company and also specify the activities of such a company.
Starting a business in Singapore generally takes less than a day if all necessary documents are prepared well, and all requirements are met before application.
For more great business tips, check out the other blogs on Career Geek.
