It is well known that Singapore is one of the most ideal countries for conducting business for both locals and foreigners. Singapore is equipped with modern infrastructure, advanced facilities, high-quality workforce, and well-enforced law and regulation.
Undoubtedly, there are many foreigners that are interested to start a business in Singapore. Each day, new companies are registered. If you are one of the foreigners that are tempted to open a business in Singapore but do not know how, you don’t have to worry. Here are several things you need to know and prepare before you go through the process of company incorporation in Singapore.
- Company Registration Firm
The service of a company registration firm can easily be found anywhere and it can be hired anything. If you are a foreigner, you are obliged to use this service to help you go through all the process of company registration in Singapore. They will be your guide and advisor, and they will make sure that everything goes smoothly for you.
Despite having these firms to hire to aid you through the process of company registration, there is absolutely no harm in knowing ahead of what is required for company registration in the country.
- Business type
First thing first, you have to decide on what kind of business type or entity that you want to open in Singapore. To put it simply, there are four types of business entities that you can register in Singapore as a foreigner:
- Representative Office
- Subsidiary Company
- Branch Office
Those three are the options that you can freely choose depending on your capability and goals. Each type of business entity may differ slightly in the way they operate, the liability, tax exemptions that apply, and limitations. You have to consider well before making a decision.
- Company Name
Of course, a company can not run without a name. You have to come up with a company name that is unique and easy to remember. However, the company name should not infringe any copyright, meaning that it must be original. It must also not include improper words that are obscene or vulgar. This company name is to be submitted first before anything else. After the company name is approved, then you can proceed to the next step in company registration.
There are quite a number of documents that you need to provide for the government to be able to approve your business for lawful conduct. The required documents are:
- Company Constitution
- Residential address details
- ID of shareholders and company officers
- Signed consent to act as a company secretary
- Signed consent to act as a director
The documents that are submitted must be in English. The government may ask you for more documents. In such case, you must comply and provide it to them immediately.
You need people to run the company. Before you hire workers, you must first hire the basic required staff for your company according to the law. First, you need to have a local or resident director. This person must be at least 18 years old and lives in Singapore. The director can be a citizen, a resident, of an Employment Pass holder. Next, you need to hire a secretary maximum within six months after the company incorporation. The requirement for the secretary is almost the same as a director. However, the person must be a native Singapore. Aside from those two, a company surely need a shareholder. The law requires a company to have at least one shareholder. The shareholder must have paid-up capital of S$1.