The company incorporation process is below: Singapore ranked second for ease of doing business rated by the World Bank and the country is one of the easiest places to start a company. In this article, we discuss step by step process of company incorporation in Singapore.
Most common types of business available in Singapore is, Private limited company and there is some advantage attached with these types of company; such as these private limited companies can open their business with only one shareholder and can register with only 1 Singaporean dollar.
They also got limited liabilities for any debt obligation. This means the assets related to a company is used to settle the company’s debt liability and the investors may remain protected.
So starting a business as a private limited company is a good choice in Singapore. If any business options do not go with privately limited terminology then the investor has the option to start a business with Limited Liability Partnership Company or sole proprietorship company.
Limited Liability Partnership Company is the type of company that offers incentives to their employees such as lawyers, architects etc grow them into the business partner.
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| Company incorporation process in Singapore |
Any limited liability partnership company has the similar right as private limited company and partners of the company has limited liability in case the company goes bankrupt or falls in debt.
Another benefit of LLP is that each partner of the company may decide how much he/she wants to contribute in business and there is no obligation of appointing any board directors or holding any annual meetings.
In the end, the sole partnership company is normally recommended for Singaporean citizens and they have the advantage in the registration process, the owner’s autonomy, tax benefits etc. However, the sole partnership company owner got the unlimited liability and he/she solely responsible for any loss or debt.
The process of branch office se tup in Singapore
For foreign company registration in Singapore, they use their any branch office or representative office in Singapore.
Normally, the branch office is the general extension of head office and this type of offices are not a separate entity.
So the head office of the company is responsible for any debt and liability of the branch office and branch office has the right to conduct similar business activity of head office.
The branch office has few responsibilities and they have to appoint one representative who resides in Singapore and they should have a registered address in Singapore.
They should follow the registration process same as a private limited company and the process have to do through ACRA’s office.
On another hand, the registration process for the representative is differing than the registration of branch office.
For registering any representative office the company has to register with the Singapore Representative Office Management System and this agency is governed by the international enterprise of Singapore.
The representative office cannot run operation similar to a branch office. The branch office has the authority to conduct commercial and productive operation while the representative office may only promote business, conduct market research and provide after sale services.
Any representative office may run if the company runs for three years and if any foreign company has the yearly turnover of US$250,000 plus then this company cannot open a representative office in Singapore.
Additionally, the representative office may have only 5 employees and they are allowed to conduct only small operations.
In order to do company incorporation in Singapore, Companies have to follow few steps:
- Initially, they have to prepare the documents and find a reserved name for the company.
- Then they have to visit the BizFile website and register with the website. After the registration process, they need to upload the prepared documents and pay the incorporation fees.
- That’s it! The incorporation process is complete. Usually, the process for reserving name takes one week and from the date for applying the name will be reserved for next sixty days.
- The applicant may have the name reserved for an additional sixty days more.
How to open a Bank Account in Singapore?
Baking is an integral part of the business and Singapore has one of the good banking systems in the world.
There are three major banks in Singapore and these are United overseas bank, an Overseas bank of China, Development Bank of Singapore. However, there are many international banks are operating in Singapore.
These are Standard Chartered Bank, HSBC bank, ANZ bank, Citibank and Bank of China. The Monetary Authority of Singapore is the controlling authority for the entire financial institute in Singapore and they actually provide very minor restriction for the corporate companies to have banking accounts.
Note that the anti-Money Laundering Law is strict in Singapore. There are few steps of opening a corporate bank account in Singapore and these are: prepare documents such as identity, management team details, company activities etc.
Then the company has to submit documents to the bank along with application form and attend the bank interview.
Some banks may allow the customer to submit documents online or by courier services, while others require a customer to attend physically.
Finally, the client has to deposit the initial fund and activate the e-banking facility.
Note: If anyone want to know more how to register a company in Malaysia, they can read our another article from our website.
