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Singapore is a great country with a booming economy that attracts top talent from worldwide. The government of Singapore is very business-friendly. They have created an environment where companies can operate in several innovative ways, for example, with their taxation system and flexible regulations.

You can easily incorporate a company in Singapore and set up a branch office or a subsidiary there. This article is an overview of company incorporation Singapore.

What is Company Incorporation?

You have an idea, a great vision, and you want to pursue it with all your heart. So what’s next? Well, if you want to turn your ideas into reality and start a company, then it’s a good idea to incorporate it.

Company incorporation is the process of creating a company or corporate entity. In Singapore, company incorporation involves creating a company and registering it under the Company’s Act.

How does Incorporation help Business Owners in Singapore?

According to the Accounting & Corporate Regulatory Authority of Singapore, incorporating a company in Singapore has many benefits.

The main benefit is that it offers limited liability protection. As a shareholder, you can only lose what you have personally invested in the company. You do not have to worry about losing your personal assets.

Another great thing about company incorporation in Singapore is that you will have access to certain tax benefits and make it easier for banks to work with your company.

Types of Entities to Incorporate in Singapore

There are three categories of entities to incorporate in Singapore: sole proprietorship, partnerships, and private limited companies.

  • Sole Proprietorship

Sole proprietorship is the simplest business structure and the easiest to set up. It’s easy to start, and the business owner has full control over it. The liability is also limited to what you have invested in the business.

  • Partnerships

Partnerships are an incredibly effective way to do business. This is because they combine the advantages of both parties to make the whole venture better. Partnerships come in many forms in Singapore; the most common ones are Ordinary Business Partnerships, Limited Partnerships, and Limited Liability Partnerships.

  • A Private Limited company

A company has several advantages over the other legal entities available to incorporate in Singapore. It’s the most flexible structure, and it gives owners complete control over their assets. However, it also comes with more complexity, and it’s more expensive to set up and maintain than other structures.

Company Incorporation

How to Incorporate a Company in Singapore

You need to do the following three steps to incorporate a company in Singapore:

  • Check for eligibility

If you are starting a new business or expanding an existing one, and need to incorporate your business in Singapore, one of the first steps is to check the eligibility criteria for incorporation.

The eligibility requirements will vary depending on whether you are a new company or incorporated overseas. The main factors determining your eligibility for incorporation are your company’s name and its proposed activities.

  • Apply for registration with ACRA and register under the Companies Act

As companies incorporated in Singapore usually do business within the country and abroad, Singaporean companies are required to apply for registration with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore and under the country’s Companies Act.

  • Comply with all requirements and provide the needed documents

Lastly, you need to meet all the requirements depending on the entity you choose to go with. For example, to incorporate a private limited company, the key requirements are:

  • 1 resident Director
  • Local registered address
  • 1 Company Secretary
  • Minimum 1 Shareholder
  • $1 paid-up capital

Depending on whether a shareholder is a resident or non-resident, there are different requirements. The main document needed for a resident shareholder or director is a Singapore ID copy. If you’re a non-resident shareholder and director, you need to submit a copy of your passport, proof of residential address, and bank reference letter.

Conclusion

Incorporating your business is a crucial step for any entrepreneur. It’s the difference between being a sole proprietor and a responsible, legally recognized business owner. So, if you’re looking for a good way to take your business to the next level, then you should consider incorporating it.