Singapore consistently ranks as one of the most business-friendly locations in the world. Its strategic position, robust economy, efficient legal system, and attractive tax regime make it an ideal environment for entrepreneurs looking to establish new companies. Here’s a detailed guide on setting up a new company in Singapore, including a startup checklist, insights into setup company services, and an overview of the associated costs.
Starting a New Company Checklist
Establishing a new company in Singapore is relatively straightforward, yet can be perplexing for beginners. Here’s a checklist to guide you through the process of starting a new company in Singapore.
- Decide on Your Business Structure: In Singapore, the most common business entity is the private limited company due to its scalability and limited liability. Other forms include sole proprietorships and partnerships. Choosing the right structure depends on factors like the nature of the business, risks, and the number of owners.
- Choose a Company Name: The name must be approved by the Accounting and Corporate Regulatory Authority (ACRA) before registration. It should be unique, desirable, and not similar to any existing local company names or trademarks.
- Appoint a Director and Company Secretary: Singaporean law requires at least one director who is a local resident (Singapore citizen, permanent resident, or holder of an EntrePass or Employment Pass). A company secretary must also be appointed within six months of incorporation.
- Register Your Company: Once the name is approved, you can proceed with registering your company with ACRA. This process is streamlined and can often be completed within a day through ACRA’s online filing system, BizFile+.
- Prepare Company Documentation: This includes the company constitution (previously known as the articles of association), which outlines the company’s rules and regulations.
- Open a Corporate Bank Account: After registration, you will need to open a corporate bank account in Singapore. You can choose from numerous local and international banks.
- Apply for Necessary Licenses and Permits: Depending on the nature of your business, specific licenses and permits may be required before you can commence operations.
- Register for Goods and Services Tax (GST): If your company’s annual turnover exceeds SGD 1 million, you must register for GST. This is similar to Value Added Tax (VAT) and is currently set at 7%.
- Stay Compliant with Ongoing Regulatory Requirements: These include filing annual returns, holding annual general meetings (AGM), and submitting tax returns.
Starting a New Company Checklist
Setup Company Services in Singapore
To streamline the process of setting up a new company in Singapore, many entrepreneurs turn to professional setup company services. These services can assist with:
- Company Registration: They handle all the paperwork related to the registration of the company with ACRA, ensuring compliance with local laws and regulations.
- Corporate Secretarial Services: These services help manage statutory compliance issues and assist with paperwork such as the preparation of minutes of meetings and filing annual returns.
- Legal and Accounting Services: Professional advisors can provide crucial guidance on legal matters, tax planning, and financial management, which are essential for new startups.
- Office Solutions: Many service providers offer virtual office solutions or assist in finding physical office spaces, which can be beneficial for companies looking to minimize initial overhead costs.
Setup Company Services in Singapore
Setup Company Costs in Singapore
The cost of setting up a company in Singapore can vary widely depending on the type of business and the specific needs. Here’s a breakdown of potential costs:
- Company Registration Fee: The current fee for registering a company with ACRA is SGD 315, which includes the name application fee.
- Professional Fees: Hiring professional services for legal, secretarial, and accounting assistance can range from SGD 500 to several thousand dollars, depending on the complexity of your requirements.
- Office Space: Costs can vary significantly based on location and the type of office space (e.g., virtual office, co-working space, or traditional office lease). Renting a small office in a less central area might start from SGD 500 per month, while prime locations can command much higher prices.
- Licenses and Permits: The cost of obtaining necessary licenses and permits can vary. Some are relatively inexpensive, while others, particularly those related to regulated activities (like financial services), can be quite costly.
- Miscellaneous Costs: These might include initial marketing and advertising expenses, equipment purchases, and insurance policies.
Setup Company Costs in Singapore
Conclusion
Setting up a new company in Singapore involves several steps, from deciding on a business structure to handling regulatory compliance. While the process is straightforward thanks to Singapore’s efficient systems, attention to detail and proper planning are crucial. Utilizing setup company services can alleviate much of the burden, allowing entrepreneurs to focus more on strategic aspects of their business. With careful planning and understanding of associated costs, setting up a new company in Singapore can be a smooth and successful endeavour.
