There are a number of questions that arise frequently while starting a company in Singapore.
The most frequently asked questions about forming a private limited company in Singapore are addressed here.
Individuals or multinational companies interested in doing business in Singapore can choose from a variety of business structures.
We’ll look at each one separately:
Private companies in Singapore include the following:
All Singapore private limited company directors must meet specific requirements.
They have to be:
Additionally, every private limited company must have at least one director who is a Singaporean citizen, permanent resident, or holder of an EntrePass.
No. Natural persons, not corporations, must serve as directors of Singapore firms.
Foreign companies, on the other hand, can appoint a nominee (“nominee director”) to act on their behalf.
A nominee director is a full legal director with the same powers and obligations as any other director under Singapore Companies Law.
When a nominee director is appointed, the company and the nominee director will sign a contract outlining the nominee director’s responsibilities to the company.
Yes. Within six months of incorporation, all Singapore companies must appoint a company secretary.
The company secretary is in charge of dealing with Singapore regulatory authorities, filing necessary documentation, and advising directors on their legal and compliance obligations.
In Singapore, a professional company secretary firm is frequently used for this.
There must be at least one shareholder and a maximum of 20 in a Singapore-exempt private limited company.
A private company limited by shares can have up to 50 shareholders.
At least one ordinary share with full voting rights must be held by this shareholder.
Yes. However, it must be a public company, not a private company with limited liability.
In Singapore, a private limited company’s minimum share capital is one dollar, however it can be paid in any currency.
Yes, but at least one of the shares must have full voting rights.
Yes. Foreigners are allowed to own 100% of a Singapore company.
Yes, foreign companies can be shareholders in Singapore private companies limited by shares, including corporate trustees of overseas trusts (but not exempt private companies).
However, full details of beneficial ownership must be supplied to the Accounting and Corporate Regulatory Authority on the application for Singapore incorporation.
Yes. Those who want to form a Singapore company should apply for approval of their company name through the online portal before filing for incorporation.
The company name cannot be the same as that of another Singapore company.
No. Under Singapore law, approval of a name confers no intellectual property rights on the holder.
Singapore law requires all companies incorporated in Singapore to pay the corporate income tax.
The current rate of corporate income tax is 17%.
Furthermore, any multinational company with a “permanent establishment” in Singapore must pay all corporate income taxes there.
In general, a permanent establishment exists when an overseas company maintains a fixed place of business in Singapore where it conducts its core activity.
If your Singapore company is expected to generate S$ 1,000,000 in revenue, you must register for GST.
GST, on goods and services Tax, is an indirect tax on goods and services in Singapore, similar to VAT in Europe.
The GST rate is now 7%.
After receiving approval for the company name, the company must:
After it has been founded, the new private company can open a bank or business account in its name and begin trading.
It all depends on the type of business the company will be doing. Some businesses need special permits or registrations.
For example, all real estate firms must employ someone who hold a real estate agent license.
A Singapore-registered private company must have complete financial records that are audited annually by an external firm unless it is exempted.
Exempt private companies in Singapore are exempted if they meet two out of three of the following criteria:
Tax returns must be filed on a yearly basis.
Companies that are obliged to register for GST must also file GST returns on a regular basis as desired by Singapore authorities.
Yes. Every company registered in Singapore is required to file an annual return in order for authorities and stakeholders to have the up-to-date information.
The company secretary usually prepares and submits this.
It contains identification information for directors and shareholders, information about shares, and attached financial statements: A declaration must be submitted if the company is exempt from preparing audited financial statements.
We can’t answer every question that exists regarding company incorporation in Singpaore…in this article.
We can however, answer every one of your concerns if you reach out to the experts at Air Corporate, and get started by registering your business with us.
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