Singapore remains an attractive destination for opportunistic companies around the world as a prime choice to expand their businesses. Widely viewed as a strategic move, particularly for entrepreneurs and firms looking to expand their reach in Asia, there are plenty of reasons that prove it a wise choice.
Known for its business-friendly environment, political stability, and robust infrastructure, Singapore offers numerous advantages for both investors and established enterprises.
In this blog, we delve deeper into why Singapore is an ideal choice for company setup and expansion and how you can go about doing so.
Why Choose Singapore for Starting a Business?
Singapore has become one of the world’s fastest-growing countries within the Asia-Pacific region. In fact, both local and international companies that have set up in Singapore are thriving.
It also retained its leading position as the best place in the world to do business, according to the Economist Intelligence Unit (EIU), achieving top scores across the board, specifically in technological readiness, foreign investment, trade, and exchange control policies.
Compared to nearby countries, namely China, Hong Kong, and Korea along with others, Singapore has continued to flourish distinctively by not just encouraging local but international businesses. From small to large-scale enterprises, there are limitless possibilities for one to start a business in Singapore within no time.
With low corporate taxes, multiple government grants, and great infrastructure, Singapore continues to lead as a business haven and attract many foreign entrepreneurs. If you’re planning to start a Singapore company, we show you how to go about registering and what you need to get started.
Related Read: Singapore Company Registration Checklist
How to Start a Business in Singapore?
To commence a business in Singapore, follow these steps:
- Choose your preferred business structure.
- Register your company with the Singapore Company Regulator, The Accounting and Corporate Regulatory Authority (ACRA). ACRA, a statutory board under Singapore’s Ministry of Finance, serves as the national regulator for business entities, public accountants, and corporate service providers in Singapore.
- Establish your corporate bank account.
Registering A Private Limited Company in Singapore
A Private Limited Company is the most commonly chosen type of business preferred for those who want to make the most out of limited resources and long-term plans to yield higher profits.
By choosing to set up a private limited company, you can limit your liability to the subscribed share capital, access tax concessions, build a credible image, and unleash the real potential within your business to attract more investors and other financing options.
Related Read: 5 Advantages Of Setting Up A Private Limited Company in Singapore
Let us look at the process of setting up a private limited company and opening a corporate bank account in Singapore:
ACRA is the governmental agency responsible for looking after the business and corporate sector and strives to provide a vibrant environment for doing business with local and international businesses in Singapore.
By choosing to set up a private limited company in Singapore, you will need the following:
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Company Name
The first and most important step is all about choosing an acceptable company name for your business to register in Singapore. It must be approved by ACRA, only then your Singapore company can be incorporated. There are certain key elements to which your proposed company name may be rejected, as follows:
- Company names identical to other existing companies in Singapore
- Company names that appear to be socially and lawfully undesirable
- Company names that are similar to established international trademarks
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Check available company names now with our Singapore Company Name Check Tool!
Shareholder
To successfully set up a private limited company in Singapore, you will be required to have at least 1 shareholder where the director and shareholder can be the same person.
Both local and foreign individuals can be the shareholder whose details will also appear in all public records and appearances. The good news is that foreigners are allowed to have 100% shareholding in Singapore
1 Local Resident Director
You will need to have at least 1 local residing citizen of Singapore appointed as the Director of the company. If you’re planning to run your business from overseas, you can always appoint a Nominee Director to meet this requirement
Even if you plan to relocate, you can temporarily appoint a Nominee Director while waiting for your Employment Pass application to be approved.
1 Local Corporate Secretary
Next to having a local director, you will also have to appoint a local Singapore company secretary. According to the Singapore Companies Act, you must appoint the secretary within the first six months of incorporation.
Initial Paid-Up Share Capital
According to the stated law, the minimum initial paid-up capital should be at least S$1. You can increase this amount in the future once the company has been fully incorporated.
Always remember that the shares of a private limited company cannot be legally offered to the general public and shares are always transferred on the basis of a private agreement between the buyer and the seller.
Local Registered Office Address
According to the Singapore Companies Act, all private limited companies are primarily required to have a physical registered office in Singapore.
No matter which city you choose to headquarter your company, there must be a local physical address that represents the existence of your business in Singapore. All the official letters, documentation, and other things will be posted at this registered address. We provide you with a Singapore-registered office address so you can run your business from anywhere in the world.
Open Corporate Bank Account
Once everything has been done perfectly, and the company has been successfully incorporated, you can open a corporate bank account at any of the local or international banks that are based in Singapore.
In most cases, the account signatories and directors are required to be physically present at the bank to successfully open the account. However, in the new normal, we can help you get this done virtually.
How Rikvin Can Help
As a foreigner, you will need to engage a corporate service provider to register a Singapore company. Our incorporation specialists at Rikvin will provide you with the necessary expertise, adhere to compliance, and help you set up your company in just 1 day!
That’s all you will need to register and incorporate a Private Limited Company in Singapore. By choosing Singapore, you are all set to foster your strategic business development goals perfectly and continue to grow in 2024
FAQs
- All foreigners are required to engage a professional corporate service provider to register a Singapore company. This will help you to stay compliant with the regulations in Singapore.
- A private limited company is the most common entity registered in Singapore.
- You will need to meet the following key requirements when registering a Singapore company:
- Minimum 1 Shareholder
- Minimum 1 Local Resident Director
- Minimum SGD 1 Paid-up Capital
- 1 Local Corporate Secretary
- Local Registered Address
- Singapore has seen the tech, health, manufacturing and logistics industries thriving during this COVID-19 pandemic. Starting a business that contributes towards the recovery of Singapore’s economy will be a good idea to kick off soon!
Ready to Set Up a Singapore Company?
We got you covered in every step of the business company incorporation process.
Rikvin’s content team includes in-house and freelance writers across the globe who contribute informative and trending articles to guide aspiring entrepreneurs in taking their business to the next level in Asia.
