Learn About the Three Steps to How to Set Up a Business in Singapore
There are many reasons why people want to start a business in Singapore. The city is not just a global financial powerhouse, but it is also an emerging favourite for most international entrepreneurs. The government makes it simple for foreigners to start a business with very few requirements and no corruption at all. Singapore is one of the top Asian financial capitals. For interested investors, here is what you should know about how to set up a business in Singapore.
The Types of Corporate Entities You Can Register in Singapore
When thinking of setting up a business in Singapore, there are five types of corporate entities you can register. They include the following:
Sole Proprietor – setting up a single proprietorship business is quick and easy in Singapore. It is the ideal type of business to go for if you are not willing to employ anyone. Your tax regime and the tax of the company will consider as one entity. Hence, you will not have to worry about paying corporate taxes after you pay your taxes.
Partnership – a partnership business is when a group comprising of at least two people are interested in registering a business in Singapore. The maximum number of partners allowed when registering a partnership is 20, and in this case, all the partners are personally liable for the business expenses.
Limited Partnership – with this kind of business in Singapore, one partner is responsible for all the liabilities of the business. But the business may also have other partners who are not personally liable to certain extents in the business arrangement.
Private Limited Liability Company – for most people interested in how to set up a business in Singapore, their main focus is always on setting up a company. It is the most common business type most investors are interested in when thinking about starting a venture in Singapore. In Singapore, a private company has limited liability and must have at least one registered director and one shareholder. In most cases, the director is always a Singapore national. If not, then there is an additional process which you must follow to get an EntrePass. It is permission granted by the Ministry of Manpower giving non-citizens powers to act as directors of companies.
Before You Set Up a Business in Singapore
To register any business in Singapore, you must be a citizen or a resident. In most cases, you will need at least one director to be resident in Singapore or a local representative to help you meet this requirement. The requirements required to register a business in Singapore will vary depending on the exact type of business. If you are interested in registering a company, then some requirements are relatively strict. You will have to comply on those requirements before you receiving permission to start operations, and these include appointing an auditor and a company secretary.
For a simple partnership or sole proprietorship, however, the process is quite simple. Though there are fees to be incurred in the process of registering any form of business, there is no minimum capital required for one to start a business in Singapore.
The Company Registration Process in Singapore
The process of registering a company in Singapore is relatively simple, and this is usually to the convenience of those interested in how to set up a business in Singapore. You can do the entire legal process online. Then you have to submit all the required forms and made the necessary payments. It will take just 15 minutes to have your company details. Here is the entire process in three simple steps:
Step One: Choose Your Business Entity
Most people want to start a business in Singapore usually register with the Accounting & Corporate Regulatory Authority as private limited companies. They require you to submit your registration forms through this body, which will also include securing the name of your business entity. You can refer to limited liability companies as taxable entities.
Step Two: Set Up Your Company
All private limited companies in Singapore are under the Singapore Companies Act. They have a legal obligation to comply with all the laws under the Act, the ACRA, and the Inland Revenue Authority of Singapore Act. Some of the provisions of these acts for the formation of a company in Singapore include:
- The name of the company which must be approved by the ACRA
- The shareholders – must be at least one
- The list of directors – must be a citizen or a resident of Singapore
- The company secretary – must be a citizen or resident of Singapore
- Paid-up capital of at least S$1
- The registered physical address of the company
Step 3: Open a Bank Account
The next step on how to set up a business in Singapore after the company incorporation is to open a bank account. There are a variety of both local and international banks where you may open a bank account. There are no restrictions on which banks you should use for the company’s accounts.
After The Incorporation
Kindly note that the process of how to set up a business in Singapore will not end with the opening of the bank account. There are certain post-registration activities you have still have to do, and these include:
- Getting Business Licenses And Permits – these will vary depending on the nature of your activities
- Registered Office Hours – you will be required to register your office address as well as the working hours – usually at least three hours every weekday.
- Business Registration Number – this will be given by ACRA, and it must appear in all the official company documents.
- Customs Registration – if the nature of the business will involve exporting and importing items in and out of Singapore, then you will have to register with Singapore Customs.
Once you achieve all the requirements, you will be good to go as far as how to set up a business in Singapore is concerned. It should be simple and easy. If you run into troubles, don’t hesitate to seek help and avoid making mistakes that may, later on, affect your business.