Incorporation is the procedure of forming a corporation that is the most steady and efficient type of business structure, making this the most popular setup amongst entrepreneurs operating in the medium- and large-sized enterprises in Singapore.
A business name ought to be first approved by the Accounting and Corporate Regulatory Authority (ACRA) prior to the company being incorporated. To make certain that the business name is not declined, it should not be identical to another existing business, should not be considered indecent or need to not be breaking the trademarks of other organizations.
In Singapore, a business (more commonly referred as corporation in the US and European nations) that falls under the category of a “private limited business” is permitted to have one to fifty investors who are prohibited to trade on the stock exchange. On the other hand, a “public limited company” is permitted to have only 50 investors because it can welcome the public to inject cash for its company expansion.
Under the Singapore Companies Act, a company should have at least one resident director who might be a “natural citizen” or a foreign individual who holds EntrePass, Work Pass, Dependant Pass, or PR. It is very important to note that a resident director needs to have a registered residential address in the country.
Meanwhile, there is no limit on the number of extra directors-regardless if they are a foreign or local individual as long as they are at least 18 years old, should not be “undischarged” bankrupt, and have to not be founded guilty of any criminal malpractices.
A company secretary must be a resident of Singapore and has certain credentials for the stated position. (A secretary should be appointed within six months of incorporation.).
Share capital or paid-up capital
Under the Singapore Companies Act, the minimum paid-up capital is S$ 1 if a business is owned by a “natural resident” or holder of Employment Pass. But if an EntrePass holder owns the business, the minimum paid-up capital needs to be S$ 50,000.
Registered workplace address
A registered address could be an industrial or residential address. For a residential address, the investors should seek consent from the Urban Development Authority or the Housing and Development Board.
Memorandum and Articles of Association
These documents specify the business activities of the company and the guidelines and policies governing its internal management.
It is rather easy to start a business in Singapore, and many investors see it as a great country to set up their offices.