Anyone above 18 years of age can open a company in Singapore. Foreign entrepreneurs need to hire a reliable provider of services to start a company in Singapore.
Many local entrepreneurs also use these third-party services. Look for a promotional package that provides you with essential services like company incorporation, company secretary, and registered office address at an affordable cost.
Why Start a Private Limited Company
The business owners prefer to start a private limited company. It greatly enhances your ability to manage the risk, credibility, liability, and growth of your business. A private limited company:
Has a distinct identity from its owner
Limits the liability of its shareholders to their share capital
Is a tax-efficient entity
Foreigners are allowed to own 100% shares in a company registered in Singapore
Can claim tax exemptions, benefits, and rebates
If you start a company in Singapore you need to submit to strict statutory compliance requirements such as preparing accounts, and director's reports, holding an annual general meeting, filing annual returns and, if required, auditing company's finances.
Key Requirements to Open Singapore Company
Before you apply to ACRA to open a Singapore company, you need to make sure that you have:
A company name approved by ACRA
At least one local or resident director (a Singaporean, permanent resident, EntrePass or Employment pass-holder
At least one to a maximum of 50 shareholders
A local residential or commercial address for the company office
At least one company secretary
S$1 as minimum initial paid-up capital
The process to Start Company in Singapore
The process to open company in Singapore is straightforward. There are only two steps to complete.
Get Company Name Approved by ACRA
Prepare a list of company names and then go on ACRA's website BizFile+ and check them for availability. Your incorporation services provider can assist with this task.
They will register the available name by paying S$15 to ACRA. Then you have 60 days to open a company in Singapore. Choose a name that is:
Unique and meaningful
Not vulgar or obscene
Free of trademark and copyright issue
Apply to ACRA
With an approved company name, you can apply to ACRA to start a company in Singapore. You need to submit incorporation and KYC documents to ACRA. As long as they are in order, ACRA takes about 1-3 days to register your Singapore company.
Submit Incorporation Documents
Here is a list of incorporation and KYC documents you need to submit with your application to open a Singapore company. ACRA needs these documents in English. So, if needed, get them translated from an authorized agency.
Company name approved by ACRA
Short description of business activities
Registered office address
Details of shareholders, directors, company secretary
Foreign business owners: A copy of passport and residential address proof (overseas)
Foreign companies: M&AA, incorporation certificate
Singapore residents: A copy of the Singapore identity card
Complete Post-Incorporation Formalities
You need to complete a few post-incorporation tasks before starting your business activities.
After successfully forming your company, ACRA sends an email giving details of your company: Unique Entity Number, business profile, details of shareholders, etc.
You can use this soft copy as the Certificate of incorporation in Singapore. If you need a hard copy, you need to pay the fee, and ACRA sends you a PDF copy which you can print.
Open a Corporate Bank Account
Opening a corporate bank account for your company. It will help you separate your personal and business finances. The bank may ask for your Certificate of Incorporation and business profile.
Get Business Licenses and Permits
You may need to apply for and acquire business licenses or permits for your company. These may depend on your business activities. Approach the proper authorities, pay the fees, and get them.
Register for Goods and Service Tax (GST)
Check if you need to register your business for GST. You will need to if the company's expected annual turnover is over S$1 million.
Company Seal
Send for Company seal. The company documents with a seal look professional and authentic.
Open CPF Account
Open a CPF account and top it up by depositing the appropriate amount.
Corporate Income Tax
Register your company with IRAS. The corporate income tax is low and is charged at a flat rate of 17%. And after paying it, companies can disburse tax-free dividends to their shareholders. There is no tax on capital gains in Singapore.
It is easy to open company in Singapore. As a foreigner, you do not need to apply to any authority or Ministry for special permission. And you can own 100% of its shares. If you make a profit, you can easily transmit it out of Singapore.
