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Setting Up a New Business in Singapore? What You Need to Know about Incorporating Your Company?

In: Corporate Functions

Singapore is consistently positioned in the first 3 slots for the past 12 years in the ‘Ease of Doing Business’ rankings in the World Bank’s annual survey of 190 economies across the globe. The government initiatives and the extensive trade networks that the country offers make it an attractive destination for companies to set up their business here.

 

One can incorporate one of the five types of business entities here. These are Limited Partnership (LP), Partnership, Limited Liability Partnership (LLP), Sole-Proprietorship, and Private Limited (Pte Ltd) company. The last option is by far the most preferred one.

 

The Incorporation Process

 All the companies operating in Singapore are registered with ACRA (Accounting and Corporate Regulatory Authority). The first step is to register the company’s name.

 

Register the Company’s Name

 The approval of the company’s name takes 1-2 hours, but there are certain words that are restricted to be used. If any of the restricted words are used in the name, then the approval process can take days or weeks as then it requires approval from a corresponding external government authority. If you hire the services of a professional firm for incorporation, then they guide you through all the statutory compliances required in choosing the name. It is mandatory by law for the foreigners to hire the services of professionals for business incorporation Singapore; however, even the local entrepreneurs prefer using it.

 

ACRA charges a nominal fee of S$15 for this and once you get the name approved you can proceed further. The approved name is reserved only for two months and you need to incorporate the company within this time frame. There is, however, an option of extending the time frame by another 60 days by filing an extension request a day before the expiry.

 

Incorporate the Company

Now that the name is approved and registered, the next formalities of incorporation can be completed in a few hours’ time if all the documents are in order. The professional incorporation service you have hired for the process makes sure of this. After paying a fee of S$300 to ACRA, it gets registered and hence legally recognized in the country. There are a few other requirements that need to be fulfilled post incorporation.

 

The incorporation process is fairly straightforward here. Still, it is always recommended to engage the services of a professional firm. This helps in sailing through the process without any hiccup.

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