How to register a business( types of companies in singapore)
A procedure for registering a company is called a “company registration procedure.” This process is easy and doesn’t take a lot of time. But all of the steps in the Company registration process need to be taken in order for the process to go smoothly. A business owner must first decide what kind of company they want to start. Based on this, the business owner needs to move forward with registering the Company. The process of registering a company gives different benefits. As part of the company registration process, foreign companies can also open branch offices in Singapore.( types of companies in singapore)
What Kinds of Businesses are in Singapore( types of companies in singapore)
Companies in Singapore can be put into the following groups:
Company with limited liability( types of companies in singapore)
A company that is limited by shares is a private limited company. A private limited company’s shares are not traded on a public stock market. In a private company, up to 50 people can own shares. A private company enjoys specific tax benefits. A private company, on the other hand, can become a public company. For a private limited company to be registered, there must be a certain number of directors and shareholders. A private limited company can also have a corporation as an owner.
Private Company Not Required( types of companies in singapore)
A company that is also a private company is called an Exempted Private Company (EPC). But an EPC can have no more than 20 shareholders at most. A corporation can’t be thought of as an EPC shareholder. So, only single people are thought to be members of an EPC. An EPC is something like a minister.
Share-Holding Public Company( types of companies in singapore)
A Singapore Public Stock Exchange is where the shares of a public limited company are listed. There are more than 50 people who own shares in a public limited company. This is the least number of people who can own shares in a public limited company. By selling shares and debentures, the public limited company can get money. The Monetary Authority of Singapore requires a public limited company to make a prospectus before selling shares to the public (MAS). This is in line with what the MAS and ACRA say.
Guaranteed Public Limited Company( types of companies in singapore)
This kind of company is like a corporation that doesn’t make money. This kind of company is usually set up by its members to do things that don’t make money. In this type of business, there are no shareholders. Instead, this group is made up of a certain number of members.
What are the good things about signing up?
When a business is registered, it gets a lot of good things:
Gained more respect
When something registers with the ACRA as a company, it gets the benefits of reputation right away. A company that obeys the laws of the land will look better in the eyes of investors.
Companies that are registered follow the law. Because of this, intellectual property laws would automatically protect them. As long as the company follows the laws about intellectual property rights, its reputation and goodwill will be safe. The Company can also sue other companies if they are infringing on its rights.
Limited liability means that shareholders and directors are only responsible for the amount of shares they own. This means that the members have a limited amount of risk. In this case, creditors won’t be able to go after the members’ personal assets.
The status of perpetual succession is given to a company that is registered under the Singapore Companies Act. This means that the Company can keep going even if the directors and shareholders don’t keep an eye on it or control it in any way. The Company can keep going even if there are no directors or shareholders. The Company can make deals and even buy its own property. But the only way to buy the land is through the gents of the Company. The directors are the Company’s representatives.
Who is in charge of Singapore’s company registration process?
Accounting and Corporate Regulatory Authority is Singapore’s main company registration regulator (ACRA). Chapter 50 of the Singapore Companies Act is the law that says how a company can be registered. The ACRA is in charge of the process of registering a company in Singapore. A prospectus is made when a public company wants to sell shares to the public. The format for the prospectus has to match what the MAS says.
Procedure for registering a company and who can do it
The following have to do with the process of registering a company:
Name of Business
The Company’s name must be different from the names of other companies. For the Company’s reputation to grow, it needs a name that stands out from the rest. The ACRA has rules about what the name of the company must be. The company’s name must be filed through ACRA’s online portal. BizFile+ is the name of this site.
In Singapore, a company must have at least one director if it is formed locally. The person who runs the company must meet the following requirements:
- The person in charge must have a clear head.
- The director must have been older than 18.
- The director must be from Singapore or live there permanently.
A person with an employment pass must also be the director. The director may need permission from the Ministry of Manpower for certain things.
No law can be used to get rid of the person in charge. Besides that, the director can’t be broke.
Secretary of the Board
Within six months of being formed, the Company must hire a company secretary. The company secretary has to be a Singaporean citizen. This job can’t go unfilled for longer than six months. As part of the company registration process, the Company’s director can’t be named as the company secretary. This is to keep good governance in place.
Chief Executive Officer (CEO) and Managing Director (MD): A company can hire key managers like the CEO and the Managing Director to run its business.
After the company is registered, it has three months to choose an auditor. Companies that don’t have to be audited don’t have to meet this criterion.
If a foreign investor wants to register a business in a local country, they must hire a corporate agent to handle the registration process. A lawyer, a public accountant, or a consultant can be the corporate agent. Online forms can be filled out to register a local business in Singapore. A local director must be chosen to run the business for the foreign company.
At least one shareholder must be chosen for a company. When the Company sends the application for the shareholder’s appointment, it must include information like the shareholder’s name and address.
The company must have at least SGD 1 in paid-up capital. This is the least amount of capital you can have.
Place of Registration
The business correspondence must be done through the office address. The ACRA needs to get this information. The registered office should be where all of the Company’s records are kept.
How the company is set up
Constitution of the Company is a legal document that says what the Company can and can’t do. The company’s goals tell what kinds of businesses it can do.
How to register a business
The procedure for registering a company in Singapore is simple. As long as the required documents are sent to the ACRAA, registering a business is easy. For a company to be registered, the following steps must be taken:
Request for the Name
A company has to fill out a name application. This application has to be done online through the ACRA’s BizFile+ online portal. Certain rules must be met by the name of the Company. The following things must be true:
- The name must stand out from other business names.
- The name can’t be offensive to any Singaporean Government Authority.
- The name can’t violate anyone else’s intellectual property rights.
Meeting the Criteria for Eligibility
After the Company has filed its name according to the above rules, it must also meet the eligibility requirements. If a company wants to open a foreign branch in Singapore, it must meet the minimum number of authorised representatives.
The cost to register a local Singapore company online is SGD 300. (Singapore Dollars). The name application fee for a foreign company is SGD 15, and the registration fee is SGD 300.