Singapore Company Formation Services With Bank Account

The chances of failure in a business are approximately 95 to 99 percent depending on the business type. Still, it doesn’t stop the human race from experimenting with different things and businesses; in the end, you only need to succeed once, and the rest will be history.

Success isn’t singularly dependent on money, experience, or your will to never give up; it’s the combination of all the little contributions that count to attain a certain level of success in your life. But you must show gratitude no matter at what stage you are in your life or success.

Company formation is the first thing most entrepreneurs struggle with; it is not that they don’t know how to form a company, but the technicalities and little details that can bring a lot of impacts. Usually, they are not in the right region or country to start their company.

These times, entrepreneurs are aggressively moving and considering countries with the best ease to do business rules and less complexity. Singapore is one of the most considered places and choices of today’s entrepreneurs.

Company Formation in Singapore:

Singapore is one of the world’s trade hubs, especially in Asia; almost all the trades and cargo handling at one point get through Singapore. As per the World Bank’s ease of doing business ratings, Singapore stood at number 2, and entrepreneurs are flocking towards it.

The accounting & Corporate Regulatory Act (AC RA) describes company formation requirements in Singapore. The authority is the company registrar, who prescribes and governs the procedure for company formation in Singapore; all these terms and conditions are backed by the companies Act of Chapter 50.

Things to Know Before Getting Company Formation Service in Singapore:

The company formation process in Singapore is well-designed and optimized enough that entrepreneurs don’t have to worry about complications. It doesn’t matter whether you are a Singapore local or foreign entrepreneur; it takes 1-3 days to register and set up your company in Singapore hassle-free.

If you are a foreigner, and it’s your first time, you don’t know the registration process; the only thing you need is a registered filing agent. The next thing you need is to collect an entrepreneur pass to relocate and start work in the city-state.

Your agent provides all these documents, or you hire a company formation service in Singapore to do all the tasks and ask for customized solutions while applying for Singapore company registration.

Understanding Company Structures and Benefits:

The minimum requirement for the Formation of a company in Singapore requires the individual to be over the age of 18; if you are 18 or over 18 years old, you can set up a company in Singapore; the rule is the same for foreigners, for foreign entrepreneurs they can own 100% shares of a company.

Foreign entrepreneurs can enjoy the perks of offshore company formation in Singapore by owning 100%; apart from that, they are different company /business structures or entity types that you can register a company in Singapore and increases your tax benefits to the maximum. These types include:

• Private Limited Company (Pte Ltd)
• Subsidiary Company
• Branch Office

Private Limited Company (Pte Ltd)

The most preferred type of company that is popular among individuals, whether they are local or foreign, is a private limited company; the reason behind it’s the number one choice is due to the tax benefits that it gets and its dynamic structure that is suitable especially for entrepreneurs and business growth.

Following are the characteristics and requirements for forming a private limited company in Singapore.

• It can accommodate 1 to 50 shareholders.
• The private limited company must have at least one Singapore local or resident; it includes Singapore Citizens, Permanent Residents, or any Entrepass holder.
• A Private Limited Company is liable to pay a 0-17% Singapore corporate income tax.
• The company has its own separate legal identity, not including shareholders.
• A Private Limited Company has perpetual Existence, which means it has unlimited terms of Existence.
• It can enjoy all the legal rights just like a person or individual.
• It allows you the flexibility to buy or sells property in its name.
• In case of suing anyone, the company’s name is used to sue or be sued.
• Any company’s debt or loss is its responsibility.
• It’s easy to transfer shares ownership.
• It has no credibility issues; investors, suppliers, financial institutions, and customers trust it without any doubts.
• It enjoys all the tax benefits and incentives authorities offer because it’s a local private company.

Subsidiary Company:

If you are a foreign corporation or entity, want to explore and expand into the Singapore market, and looking for a new company formation in Singapore, establishing a subsidiary company is the most beneficial and effective for companies looking for expansion.

Following are the traits of Subsidiary Company formation in Singapore:

• The identity of the subsidiary company is separate from the parent company.
• It provides the flexibility for owning 100% shares to the parent company.
• The parent company doesn’t have to worry about taxation, as the subsidiary company enjoys and gets all the tax benefits, rebates, and exemptions offered by the authorities.
• The parent company is not affected by the debts or losses, as the subsidiary company is responsible for them; the parent company is only liable for its share capital.

Branch Office:

Another type of entity or company that any foreigner or foreign company can set up in Singapore to do business is the branch office; they can open a branch office in Singapore, and you don’t have to set up a whole new corporation in Singapore, but it has its own do and don’ts.

Following are some important points for opening a branch office in Singapore.

• A foreign parent company and a branch office are not separate entities if you consider a branch office.
• The branch office is treated as the extension of the Parent company.
• All debts and losses of the branch office are liable to its Parent Company.
• The management handles all the issues of shareholders, structure, and business activities at the Singapore branch office under the parent company’s memorandum and Article of association.
• As the branch office is part of the parent company and is not treated as a separate entity, it is not liable for any tax exemptions, benefits, or rebates offered by local authorities.
• Before applying for the Formation of a company in Singapore, discuss your requirements and needs with your agent and get insights on whether it will be beneficial to open a branch office or opt for other options.

Minimum Requirements for Company Formation in Singapore:

Singapore company formation for non-residents requires the following documents; you don’t need any lengthy statements or a plethora of papers, but these five things:

• You require a minimum paid-up capital of one dollar ($1).
• A minimum of one shareholder.
• At least one local director or Singapore resident director.
• At the minimum of one company secretary.
• A local registered address.

Company Formation Singapore for Expats:

Appointing a Registered filling agent: Are you a foreign individual, entrepreneur, or business entity wants to form a Singapore company? If yes, then the best way to do it is by appointing a registered filling agent; your agent knows all the rules and requirements and guides you better. There is several Singaporean accounting, law, or Singapore secretarial services that can help you.

Appointment of Local Director:  Appointing a local Singapore resident as a director is the next important step, you can consult with your filling agent for this purpose also, or if you have any local lead, then this will be the best scenario. Entrepass holders are also eligible for this post, per Singaporean company formation law.

3 Step Method for Company Formation in Singapore:

We divided the new company formation in Singapore into three basic steps: gathering information, preparing Company documents, and submitting them to ACRA (Accounting & Corporating Regulatory Authority).

Step 1: Applying and Getting Company Name Approval:

Applying for the company name is not difficult, but your company name must be unique and flourish 3-5 names to your agent; they will check them all in BizFile and on the portal. They will tell you the many names available from the ones you provide. It involves the following:

• For a unique name, consider one that goes with your business nature.
• Don’t consider any vulgar or obscene words; ACRA rejects them immediately.
• The name should not violate or contradict any trademarks or copyrights.
• Upon refereeing to higher authorities, the approval process can take up to 2 months.

If your provided name gets approved, it is reserved for 60 days, but if you still need more time to decide among the approved names, you can extend this period by applying to ACRA.

Step 2: Documents Required for Company Formation in Singapore:

So, if you were thinking, “what are requirements for the formation of company” the document required for company formation in Singapore is minimalist and concise. You don’t need a lot of papers and stuff, and the following is the list:

• Approved Company name (approved by ACRA).
• Description of your Nature of Business and Activities.
• A Registered local address. (Your agent can arrange it for you).
• List of Company Hierarchy, especially Shareholders, directors, and company secretary.
• For foreign nationals, identity proof, passport, or foreign residential address
• For foreign companies, Article of Association and Memorandum (Certificate of Incorporation).
• For Singapore Residents: A copy of their valid identity card.

Step 3: Application Submission to ACRA:

Singapore is one of the few countries where you can apply and choose online company formation in Singapore; you don’t need to present or submit the documents all by yourself physically, you can provide your documents to your agent, and he visits the online portal BizFile+ on your behalf and complete the task.

There are many options available for cheap company formation in Singapore. You can contact and choose any of them, but keep a rough budget of $600 to $1000 in your mind, including all taxes as Singapore company formation cost.

Post Company Registration Documents:

During your Bvi Company formation in Singapore, you must endorse a company constitution (Memorandum or Article of Association). It states all rules and regulations, SOPs, and other processes that describe how the company will run, the purpose of the company, and its rights and responsibilities.

The choice of drafting company standard procedures and working principles is entirely up to you; either you can go with the company constitution model by ACRA, or you can make a custom set of rules as per your requirement; you can hire an agent to help you in drafting a custom set of procedures. These documents address:

• Company Name
• Liability of its Members
• Names, Addresses, and nature of business/ profession/occupation of the company founder and shareholders.
• A statement depicts the wish or reason of the first shareholder to form a company according to the constitution and states the number of shares they own in its capital.

Other than that, the company also issues details on rules and SOPs to run company operations daily and how to handle issues if they occur; the following are some details in the company constitution.

• Detail of Company Shares issuance and their sale.
• Company meetings or minutes of meetings
• Company Directors
• Company Secretary
• Company Seal stamp
• Company Financial Statement
• Company Dividends
• Company winding up procedures

Documents Provided by ACRA on Successful Company Registration:

Certificate of Incorporation:

The first and far most document that ACRA issue is the certificate of incorporation after your successful registration process. An email is sent to your provided address where you can get a certificate of incorporation in soft form with the company registration number, date, etc. In Singapore, a soft copy of the certificate of incorporation is enough, but you can also apply to ACRA for a hard copy.

BizProfile (Company Business Profile):

The whole Singapore company formation for the non-resident registration process is online, and after your successful company formation, you can log in to your Bizportal, where you can download your company business profile in PDF format; the file contains the following information:

• Company Name
• Company Registration Number
• Any Previous Company  Name, if any
• Date of Registration
• Principal Business Activities
• Paid Up capital
• Company registered address
• Particulars and details of company shareholders, directors, company secretary

The reason for having a company profile is its a requirement for opening a corporate bank account; it is necessary for signing your office lease documents and while availing or subscribing to utilities.

To do Tasks After Company Formation in Singapore:

Once you are done with the company formation in Singapore, you need to do some necessary post-company incorporation task; that includes:

Passing First Board Resolution: The first task on the to-do list is passing the first board resolution after the shareholder’s meeting to hire and expedite hiring directors, secretaries, auditors, etc.

Apply for Licences and Permits: Apply for licenses and permits as soon as you get your certificate of incorporation; licenses and permits are necessary to operate.

TAX (GST) Registration: The GST registration only comes if your company expects to exceed $1 million annual turnover. Get your company registered for GST if that is the case.

Company Seal and Stamp: A company seal and stamp adds credibility to the documents; also, you need one if your company constitution says so.

Share Certificates: The share certificates prove to the company’s shareholders that they own a certain share, and the company secretary issues it.

Additional Tips for Keep your Company Compliance Intact in Singapore:

Accounting:

A Singaporean company needs to file its annual financial statement to ACRA in XBRL format; for that purpose, you must keep your company accounting books up to date and in order. Keeping your general ledgers, accounts payable, receivables, or fixed asset ledger in order would be best.

Annual General Meeting:

The service providers hold a general meeting annually if you outsource your company’s secretarial services. The companies need to share and table their financial statements for shareholder scrutiny. You can also avail of the services of Singapore company formation Services with a bank account.

Filling Annual Returns:

It’s a good practice and a must to file your annual returns within a month of the Annual general meeting.

Corporate Tax:

Keep in mind and file the corporate tax on time; the time for company tax filing is 30 November for paper filing and 15 December for e-filing.

Setting Financial Year:

It’s up to the company to set or choose the start of its financial year; it can choose from any month in the financial year.

Presence of UEM (Unique Entity Number):

Your company’s Singapore corporate secretary ensures the company name and company UEM on every company’s documents, correspondence, business cards, and letters.

FAQs:

How do I form a company in Singapore?

You can apply for company formation in Singapore by hiring an agent or company formation service at reasonable prices; you need to provide your valid identity document (passport), must have paid up capital of a minimum of $1, and a Singaporean secretary/director and address. And apply at online ACRA online portal.

How much do you need to open a company in Singapore?

The cost may vary from agent to service provider; similarly, it may also depend on the type of company formation you require, but a minimum of $600 to $1000 is required for documentation. For the rest, you can make a deal with your filing agent.

What are the steps of company formation?

You can divide the company formation process into 3 steps, from company name selection to document gathering and then applying to ACRA. Once your approved company name comes, gather and organize all the necessary documents and submit them to ACRA for approval.

What are the requirements for the Formation of a company?

The requirements are simple: you need a valid identity document, a minimum of $1 paid capital, a local Singaporean secretary or director, and a valid local office address; once you have these basic documents, you can process to further steps.

Final Thoughts:

Singapore Company Formation is a simple process; you must provide basic documents like your valid identity proof, a local address, a Singaporean Secretary, and a director. You can hire a good agent or service provider to help you and guide you further.

The registration process also involves the selection or type of company you want to register in Singapore. However, the registration process is the same, you have to apply online, and upon successful completion, you receive the registration certificate in your email and a hard copy.