Singapore is a very attractive destination for people globally who wish to set up their business or a company. Do you know that it has been ranked as one of the best country in the world for doing business by World Bank as for 10 consecutive years? Some of the factors for this are:
When a business is a separate legal entity, which is distinct from the company’s shareholders and directors, it is known as a Limited or (LTD) company. One of the main features of a limited company is that it has the power to sue or be sued in its own name and can own properties in its own name. The members of the company are not liable for the company’s debts or losses.
The types of Limited Companies in Singapore are as follows:
A company incorporated in Singapore, in which the maximum number of shareholders cannot be more than 50. According to the memorandum or articles of association (MAA) of a private limited company, its members cannot transfer their shares in the company.
Any company incorporated in Singapore in which the number of shareholders could be over 50. This kind of companies may or may not be listed on a stock exchange. If they are listed, they are known as “listed companies”. The company is permitted to raise capital by offering shares and debentures to the public. It is mandatory for a public company to register a prospectus with Monetary Authority of Singapore (MAS) before planning a public offering of shares and debentures.
A company incorporated in Singapore, which basically is involved into non-profit activities with either national or public interest like charity. When this company is being registered, a Minister can allow adding the word “Limited” or “Berhad” to the company name.
After you select a company name, it must be approved by the Accounting and Corporate Regulatory Authority (ACRA) first and then you can get it registered. Any name that is similar or phonetically identical to any registered company will be rejected by ACRA. There is a free Singapore Company Name Check tool, which you can use to check if your selected company name is not already registered by someone else.
Also note that using some words like “bank”, “education” or “insurance” can invite control and regulation by some Government authorities and in that case, you would need permission before you incorporate your company. Once the company name is approved, you have to wait for 60 days and then file an extension of an additional 60 days, if needed.
No. To get an Entrepreneur Pass (EntrePass), you need to apply for it separately.
Your application is then reviewed on the existing criteria by three government agencies, namely, SPRING Singapore, the Infocomm Media Development Authority (IMDA) and the National Research Foundation (NRF).
Some examples of businesses, which do not qualify for Entrepreneur Pass (EntrePass) include:
A resident company of Singapore will be the one whose business’ control and management is exercised in Singapore. Whereas a non-resident company will be the ones which are not resident in Singapore and hence are not subject to its tax system; for example, branch offices of any Foreign Company.
But there are many benefits that only to a resident company gets and therefore a lot of companies opt to become resident companies.
Some of the benefits of becoming a resident company are:
If a foreign national wants to relocate to Singapore and register a company in Singapore, he or she could opt for one of the two main work visas options – Entrepreneur Pass (EntrePass) or Employment Pass (EP).
But, if the foreign national does not wish to relocate to Singapore, then it’s better to engage a professional service provider like IMC and take our Nominee Director Service.
Some mandatory requirements for forming or setting up a company in Singapore are as follows:
A Singapore company must: