How To Register a Company in Singapore Complete Guide
Most of the privately registered companies are registered as Pte Ltd, including us Piloto Asia. Shareholders of the company can be individuals or corporate entities, or a mix of both. After the name is approved and the documents are prepared, accounts payable ap definition a new company can register officially with ACRA. If your name is approved, you can reserve the name for up to 120 days, and need to register your business within 120 days or less.
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Private limited companies find it easier to raise capital to expand the company or bring in new shareholders or by issuing more shares to the existing shareholders. A public company limited by guarantee is another type of business structure that is meant for non-profit organizations. A limited partnership is an alternative form of the general partnership structure.
Register your business
New shares can be issued or existing shares can be transferred to another person after the company has gone through the incorporation process. However, companies have many more compliance requirements as compared to sole-proprietors and partnerships. These include filing annual returns and holding annual general meetings, and a failure to do so would result in disciplinary action from the Accounting and Corporate Regulatory Authority (ACRA). It also involves more work to wind up a company – it can take 5 months for the company to be removed from the register. If you’re looking to expand sometime soon, structuring as a private limited company gives you more credibility.
The email notification will include basic company details such as the company registration number. Once the fee has been paid, the company will be set up within 15 minutes. Should the application be sent for a review for approval, in the instance where the intention of the company is to set up a school, the set-up process could take from 14 days to 2 months. To set up a Singapore company, the proposed name for the company must first be approved. Company name approval is obtained by filing an application with ACRA.
This was after trying to apply via the ACRA portal directly, which ended up being extremely difficult due to the poor UI/UX (not recommended for beginners). The Sleek platform and interface was also extremely user friendly. He (Oswyn) understood the urgency of setting up the account quickly and expedited the request, resulting in the entity being set up in less than 3 hours. Very professional, responsive, and setting up a company was extremely seamless. Highly recommend Sleek to online invoice generator all entrepreneurs and companies setting up in Singapore. This excludes Singapore’s Accounting and Corporate Regulatory Authority (ACRA) fee of S$375.
- Every business must appoint a company secretary residing in Singapore.
- For more information, you may refer to our article on registration and compliance fees for Singapore companies.
- A partnership structure addresses the sole proprietorship’s limited ability to expand.
- On the other hand, Singapore digital banks generally offer remote account opening.
- ACRA, a statutory board under Singapore’s Ministry of Finance, serves as the national regulator for business entities, public accountants, and corporate service providers in Singapore.
It’s easier to navigate banks and financial institutes’ bureaucracy when your business is a Private Limited Company. Sole proprietors and partnerships will have to pay a personal income tax of up to 22% on their business income. As LLP, owners have the flexibility of operating as a partnership but also enjoying the benefits of a corporate structure like a Pte Ltd. Like the other partnerships, LLP requires at least two partners at all times during the business is in operation. Business owners who want to register their companies need to get their negative retained earnings company names approved by the ACRA.
Do note that Housing Development Board (HDB) flats and private residential properties are intended for residential use, and there are conditions and guidelines that need to be followed. Most importantly, the property must still be used for residential purposes and the business activity must be kept at a small scale to avoid causing disamenities to your neighbours. If you’re starting a business in Singapore, the first question to consider is whether you need to register it. With its minimal requirements, it’s one of the easiest places globally to start a business, even bagging the #2 spot in the World Bank’s Doing Business rankings. If you’re not Singaporean and you want a hassle-free experience, you might want to consider hiring a qualified company secretary..
Determine the business structure and collect supporting documents
One of the basic requirements of opening a company in Singapore is that one of the company directors or authorized representatives is a resident of Singapore. This person can be your authorized representative that manages your business. Once you have all your documents together, a company can be incorporated within one to three business days, as long as you have all of your documentation ready and ACRA does not cause any delays.
What are the ongoing compliance requirements after company registration?
Partners can be held liable for the actions of the other partners. What this means is that because you’re registered as a sole proprietor, your liability is unlimited. If the owner can’t pay the business debt incurred, the creditors will come after your personal assets.