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All private companies in Singapore need to be registered with the Accounting & Corporate Regulatory Authority (ACRA) and abide by the MCA Compliance for Private Limited Company in Singapore as per the Companies Act stipulated by the Ministry of Corporate Affairs (MCA). While there are five main business structures available, the most commonly set up business entities are the Private Limited Companies.
Singapore specifies Mandatory RoC Compliance for all companies to file the RoC forms, returns and documents with the Registrar of Companies (RoC), ACRA to ensure that the company is carrying out business activities in accordance with the Companies Act.
Therefore, before you start a business in Singapore, you must be aware of all post-registration compliance requirements and carefully prepare a detailed Company Compliance Checklist so that your company, once incorporated, doesn’t face legal issues.
A private limited company is a separate legal entity from its shareholders and is limited by shares. It is a taxable company, and its shareholders are not liable for its debts and losses beyond the share capital amount. The main requirements to incorporate a Singapore private limited company include the following
Singapore MCA Compliance Requirements bring certain industries under the licensing regime and you cannot begin operation unless you obtain the necessary permit or license from the relevant government regulatory bodies.
Some sectors needing business licenses are Private schools, tours and travels, liquor distributors, moneylenders, banks, financial advisers, video companies, crèches, importers, wholesalers, and retailers.
Corporate Compliance Requirement mandates Goods and Services Tax (GST) on the supply of goods and services in Singapore including imports of goods. GST is exempted on the goods exported from Singapore and international services provided from the country.
The nominal GST rate is 7% and all businesses with annual taxable revenue of more than SGD 1 million must register for GST. Companies currently making taxable supplies with projected taxable revenue of more than SGD 1 million must also register. The GST registration must be within thirty days from the time it becomes liable.
Voluntary GST registration is allowed and approval for such is at the discretion of the IRAS Comptroller. Once approved, you must remain registered for a minimum of two years.
Requirements of MCA Compliance for Private Limited Company in Singapore require you to register with the Central Provident Fund or CPF which is a compulsory pension fund scheme in which both employer and employee contribute a percentage of the monthly salary to the fund. CPF contribution by the employer is mandatory for all local employees including Singapore citizens and permanent residents, earning more than SGD 50 a month. The maximum CPF contribution rate for employer and employee is specified as 17% and 20% respectively. The rate can be lower considering certain factors such as employee age, permanent resident status, etc. Foreign employees don’t come under CPF contribution requirements.
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