How to Form a Singapore Pte Ltd Company

If you think that only big players opt for private limited company registration in Singapore, then you are wrong about it. Everyone starts small, and you too can choose Pte Ltd company incorporation to benefit from this highly dynamic and scalable legal structure.

We, at SBS Consulting, can help you in registering your business hassle-free. It is really easy to set up a Singapore company as the process for it is free of red-tape or bureaucracy. It is the most common and best option available.

What is a Singapore Private Limited Company (Pte Ltd)?

A Singapore private limited company is limited by shares which are held by private investors. It is preferred because it limits the shareholders' liability to the capital they have put in its shares.

A private limited company is responsible for its debts and losses. It means shareholders' personal assets are not at risk. The sole proprietors and members of a partnership have unlimited liability which puts their assets at risk.

Pte Ltd is a separate entity from its shareholders. It is a legal person and has perpetual existence. The company pays company income tax on its chargeable income. The sole proprietors and members in a partnership pay personal income tax on the income received from their business.

Key Pre-Registration Requirements for Forming A Pte Ltd Company

· Registered company name

· Minimum initial paid-up capital of S$1

· At least 1 shareholder

· At least 1 ordinarily resident director

· At least 1 company secretary

· A registered local office address

Documentary Requirements for Singapore Pte Ltd Registration

ACRA Approved Company Name

Choose company name with care. Avoid malicious, black-listed, or vulgar names. Choose something that is unique and describes your primary business activities. Or, ACRA has the right to reject it. Also, register a suitable domain name for your business website.

Describe Your Business Activities

Give a short description of business' activities in the application to form your Singapore company. We can help you in using the proper SSIC codes to describe it.

Shareholding

The minimum initial paid-up capital you require for Singapore company incorporation is S$1. Afterwards, you can raise more funds by on-boarding more shareholders.

Prepare Shareholders’ Agreement

The shareholders’ agreement is a legal document used to define shareholders' rights, obligations, and relationships. It helps in avoiding disputes and disagreements.

Particulars of Shareholders

For the private limited company registration, you need at least one corporate or individual shareholder. Singapore allows foreigners 100% shareholding in their company. You can have as many as 50 shareholders.

Particulars of Directors

You need to hire at least one director who is ordinarily resident of Singapore. A Singapore citizen, Permanent Resident or an EntrePass holder can act as a local director. A shareholder and director can be the same person.

Registered Local Address

You need to give a registered local Singaporean address on your application for official communication. A Post Office Box address is not accepted for this purpose. You can use a residential address with prior permission from the authorities.

Details of Company Secretary

As per the Company Law, You must appoint at least one company secretary within 6 months from the company's registration. You can also appoint a provider of company secretary services for your company.

Company Constitution or M&AA

Company constitution is a document that tells how your company will be governed and carry out business activities. We can interact with ACRA and get a model constitution for you. Or, a company secretary can prepare a customized constitution for you.

Appoint an Auditor

Appoint an auditor within three months from the company's incorporation, unless it is exempted from audit requirements. A Singapore company gets this privilege if it is a “Small Company” or belongs to “Small Group.”

Certificate of Incorporation

After the company incorporation, ACRA sends you an email containing a soft copy of the Certificate of Incorporation. If you need a hard copy, we can assist you.

You need Certificate of Incorporation for the trading agreements, business contracts, transactions with other governments. It is proof of your company's legal existence and nature.

Business Profile of Company

Our experts can interact with ACRA and pay fees to obtain your company's business profile. It details company name, Unique Entity Number (UEN), incorporation date, business activities, paid-up capital, registered office address, and particulars of shareholders, directors, & secretary.

Share Certificates

We can issue share certificates to your company's shareholders. They are proofs of their ownership in the company.

First Board Resolution

After the company incorporation, its directors need to meet and pass resolutions to facilitate its functioning. Here, they appoint the resident director and a company secretary.

Open Corporate Bank Account

The board of directors, in its first meeting, passes a resolution to open a corporate bank account and specify the signatories to the account. The company need a bank account to streamline its transactions.

The banks ask for:

· The board resolution, copies of incorporation certificate, business profile, and constitution

· Singapore citizens need to supply a copy of their national ID cards. Foreigners must supply a copy of their passports

· Proof of residential addresses of the directors and ultimate beneficiary of the company

Additional Requirements for Registering a Singapore Business

Company Stamp

Order the company stamp and company seal. These add credibility to the company's official documents and correspondence. Putting UEN, company's registered address, and official rubber stamp makes your documents authentic.

AGM and Annual Returns

You must convey AGMs as per the law. You need to convey it every calendar year except in the starting year.

You also need to prepare company accounts and table it to the shareholders in AGM. Within a month of AGM, you need to file your Annual Returns to the ACRA.

Singapore Tax Filing

The deadline for paying company income tax is 30th November of every year.

End of Financial Year

The board decides the company’s financial year-end. It can be any date meeting business needs. You can claim startup tax exemptions by keeping it 365 days long. You get, for the initial 3 years, 75% tax exemption on company's first S$100,000 of chargeable income.

Singapore ranks 2nd in the list of easiest places to do business in. You can easily accomplish a private limited company registration here. This business hub also boasts of political stability, world-class infrastructure, pro-entrepreneur attitude, communication networks, startup ecosystem, easy access to funding, links to emerging markets, and proximity to 2.5 billion consumers.

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Created on Dec 17th 2020 06:29. Viewed 187 times.

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