Ottavia has provided this guide to help you understand the various procedures, registration requirements and lead time involved in registering a company.
A private limited liability company is the best vehicle for foreign entrepreneurs, allowing it to be recognised as a separate legal entity. This protects shareholders from any liability for debts incurred by the company beyond any share capital previously contributed. This vehicle is highly tax efficient when properly structured, providing owners with near unlimited business opportunities in Singapore.
Please refer to the following table on the comparison between Subsidiary and Branch
|Company Name||Name can be the same or different from the foreign company||Must be the same as foreign company|
|Officer||Company Secretary – Must be a qualified and local Singapore resident
Director – Must have at least one local Singapore resident
|Company Secretary – Not required
Director – As per the foreign company
Agent – Must have 1 local corporate representative
|Shareholder / Owner||Foreign company to own at least 51% shares||Owned by foreign company|
|Paid up Capital||Minimum S$1.00||As per the foreign company|
|Registered Address||A local registered address is required in Singapore. PO Box is not acceptable. The address can be commercial or residential (if conditions are met)||A local registered address is required in Singapore. PO Box is not acceptable. The address can be commercial or residential (if conditions are met)|
|Can a foreign individual setup the entity||No. The Company Registrar (ACRA) does not allow foreigners to register company themselves. You need to engage a professional firm to assist on the setup||No. The Company Registrar (ACRA) does not allow foreigners to register company themselves. You need to engage a professional firm to assist on the setup|
|Singapore New Start up Tax Incentive||Yes, if conditions are met||No, however branch office is able to enjoy partial tax exemption|
|Do you need any staff to manage the company in Singapore?||No. As long as the local Company secretary and local director requirements are fulfilled||No. As long as 1 local corporate representative requirement is fulfilled|
|Can the entity hire foreign staff||Yes, the company may apply for employment pass. Once the pass is approved, the staff may act as the local director for the company||Yes, the company may apply for employment pass. Once the pass is approved, the staff may act as the local agent for the company|
|Physical presence is required for company setup?||Not required. You may setup the company remotely||Not required. You may setup the company remotely|
|Opening company bank account||Once the company is setup, you may initiate the bank account opening||Once the company is setup, you may initiate the bank account opening|
|Timeline||Upon receiving the complete documents, it takes 1-2 working days to setup the company||Upon receiving the complete documents, it takes 1-2 working days to setup the company|
Prior to the beginning of the registration process, the applicant must provide the following documents to the company registrar:
Your professional firm will also request a number of other documents in order to prepare the registration paperwork:
Please note that should the documents be written natively in a language other than English, an officially-endorsed translated copy will be required alongside the originals.
Thanks to efforts by the Singapore Registrar of Companies to streamline the incorporation process, all registration procedures now take place online and require only one to two days before the applicant receives the completed documents.
Before a company can be setup, it needs to have an approved name which meets with a number of criteria. Obtaining approval involved filing an application with the Company Registrar which your incorporation firm will do on your behalf.
Provided that the name of the company does not include certain words alluding to a number of restricted professions such as bank, finance, law, or media, which may mean it requires approval from the relevant government authority outside of the registrar, the process is generally completed and a verdict (approved or rejected) rendered in under an hour.
To be approved, your company name is required to satisfy a number of criteria:
Your name will be reserved for 60 days counting from the date of lodging upon approval. A request to extend this period can be filed with the registrar prior to the expiry date.
Filing the incorporation request does not take long provided all documents are in order. Upon signing of the relevant documents, the request can be filed and approval from the registrar granted in just a few hours.
The registrar requires the payment of a registration fee upon granting approval. This fee ranges between S$300 and S$1,200 subject to types of entity registered.
Delays may occur if either the directors, shareholders or foreign companies are of particular nationalities or are citizens of specific countries. This is rare and generally requires additional documentation to secure approval.
Once a branch or subsidiary company is setup, a number of documents will be issued including:
For all legal and contractual purposes, the above two documents are considered sufficient for the purposes of conducting business in Singapore. Although there are a few other items which are important once your company is registered. Most notably, a company rubber stamp. Subsidiary companies have a number of additional documents including:
Once setup of the company is complete, you can establish a corporate bank account with any of Singapore’s major banks. In many cases, opening an account require you to be physically present as part of the process, but speak to your chosen bank to find out if it is required.
Depending on your industry or the scope of your business activities, you may need to obtain one or more licenses after company setup before you can commence operations. Licence regulations apply to only a few industries in Singapore including travel agencies, financial service providers, import and export entities, educational institutes, restaurants and hospitality enterprises.
Your company must register for the GST if your company’s projected annual income exceeds SGD 1 million. Also known as the value added tax (VAT) or sales tax, the GST requires you to charge your customers a percentage (7%) of the goods or services they purchase. If your projected income is under 1 million, registration is not mandatory.
Companies are statutorily required under the Companies Act to perform certain annual filing processes to maintain compliance with a number of local commercial regulators.
Ottavia provides a range of consulting and administrative services designed to help you better do business in Singapore. Contact our office today on +65 6807 0320 or send us a message via our enquiry form or through email at email@example.com and we’ll get back to you as soon as possible.