Starting a business is no easy feat, especially when it comes to legal formalities and paperwork. Business Incorporation Singapore is a crucial step towards establishing its legal identity and protecting yourself from personal liabilities. If you’re looking to start a business in Singapore, you’re in the right place. In this article, we’ll take you through the process of business incorporation in Singapore, from the legal requirements to the necessary documentation.
Why Singapore?
Singapore has become a hub for entrepreneurs and businesses from all over the world, thanks to its strategic location, low taxes, and pro-business policies. The country has consistently been ranked as one of the easiest places to do business in the world, with a transparent and efficient legal system that makes it easy for businesses to incorporate and operate.
Types of Business Entities
The first step towards Business Incorporation Singapore is to decide on the type of business entity that best suits your needs. The most common types of business entities in Singapore are:
- Sole Proprietorship
- Partnership
- Limited Liability Partnership (LLP)
- Private Limited Company (Pte Ltd)
Sole Proprietorship and Partnership are suitable for small businesses with a few owners, while Limited Liability Partnership and Private Limited Company are better for larger businesses that require more protection and flexibility.
Legal Requirements
Once you’ve decided on the type of business entity, you need to ensure that you meet the legal requirements set out by the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. Here are some of the key requirements:
Company Name: You need to choose a unique name for your company that is not already taken or infringes on any existing trademarks or copyrights.
Directors and Shareholders: Every company must have at least one director who is a resident of Singapore and at least one shareholder.
Registered Address: You need to have a physical address Business Incorporation Singapore that can be used as your registered address.
Company Secretary: Every company must appoint a qualified company secretary within six months of incorporation.
Memorandum and Articles of Association: You need to prepare a memorandum and articles of association that outline the rules and regulations of your company.
Paid-up Capital: You need to have a minimum paid-up capital of S$1 for a Private Limited Company, while Sole Proprietorship and Partnership have no paid-up capital requirement.
Licenses and Permits: Depending on your industry, you may need to obtain licenses and permits from the relevant authorities.
Documentation
The next step is to prepare the necessary documentation for Business Incorporation Singapore. Here are the documents you need to submit to ACRA:
Incorporation Application: You need to fill out an online application form on the ACRA website.
Memorandum and Articles of Association: You need to prepare a memorandum and articles of association that outline the rules and regulations of your company.
Declaration of Compliance: You need to sign a declaration of compliance stating that you have met all the legal requirements for incorporation.
Identity and Address Proof: You need to provide identity and address proof for all directors and shareholders.
Company Constitution: You need to prepare a company constitution that outlines the internal rules and regulations of your company.
Board Resolution: You need to pass a board resolution approving the incorporation of your company.
Incorporation Process
Once you’ve prepared all the necessary documentation, you can submit your application for incorporation to ACRA. The process typically takes 1-2 days for online applications, and 14 days for manual applications. Here are the steps involved in the Business Incorporation Singapore process:
Name Reservation: You need to reserve your company name through the ACRA website. The name reservation is valid for 60 days.
