The anti-bureaucratic government movement and business-friendly policies of Singapore have made it a global leader in the industry. The World Bank's Ease of Doing Business ranking provides an indication of how straightforward it is to establish a company in Singapore. In addition, foreign investors favor private limited firms over the other options for setting up shop in Singapore.
So, why do so many people choose Singapore as the location for their private limited company? Why is it that so many non-U.S. investors favor this type? First and foremost, where and how can I register my Singapore limited liability company?
In this post, we'll walk you through the steps of forming a limited liability company in Singapore.
Singapore Private Limited Companies—what are they?
A private limited company has limited liability and is distinct from its shareholders. It is treated for tax purposes as a distinct legal entity. Therefore, the investors of a Singapore private limited company are immune from liability for the firm's debts and losses in excess of the value of their shares.
The following are the most important steps in forming a limited liability corporation in Singapore:
- At least 01 shareholder and a maximum of 50 shareholders (individual or corporate entity)
- 01 local director
- 01 business secretary
- A minimum of 1 Singapore dollar in paid-up share capital
- A physical address in Singapore
Singapore Private Limited Company Benefits
If you're a business owner looking to establish a holding or offshore firm, the private limited company structure is the way to go. The following are some benefits that can be gained by forming a private limited company in Singapore:
- Independent status in the law
- Lessen Your Exposure to Financial Risks
- Boost Trustworthiness
- Easy Fundraising
- Profit from Potential Tax Deductions
- Changing Ownership Easily
Formalities for Forming a Limited Liability Company
If you want to form a private limited company in Singapore, you'll need the following papers:
- A name for a company that is both unique and memorable.
- Details about the Director's Background
- Details on each shareholder's identity
- The Company Constitution (previously the Memorandum and Articles of Association) defines the management structure, operations, and ownership of the company.
- The actual location of the business.
- An established agreement between shareholders
What Steps Should Be Followed When Establishing a Singapore Limited Liability Company?
A Certificate of Incorporation, a Certificate of Shares, and the firm's business record are all provided to you after forming a private limited company in Singapore.
Post-registration requirements for private limited corporations must be met before establishing a Singapore Limited Liability Company. Here is a checklist of things to do after forming a corporation:
- Submit software development license applications. These licenses will be made available through the assistance of a single IBC.
- The first Board Resolution should be held within the founding month. Company directors will be confirmed at this special meeting.
- Establish a business checking account at any one of Singapore's many domestic or foreign financial institutions.
- Within the first three months of incorporation, the company must appoint an auditor.
- Within the first six months after incorporation, appoint a company secretary.
- If your firm has taxable income of more than S$1 million per year, you must register for Goods and Services Tax (GST).
- Sign up for the CPF retirement plan in Singapore.
- Keep the Annual Shareholders' Meeting (AGM) on an annual basis.
- Within 30 days of the AGM, please provide the previous year's financial statements.
- Corporate income tax returns must be filed yearly by November 30.
- Make use of government assistance and incentive programs. The Business Grants Program, Startup SG Tech, and the Startup SG Accelerator are just a few options. There is a great deal of variation in Singapore.
Start now with Singapore Company Formation
Following these rules, both Singaporeans and foreigners should have little trouble establishing a private limited business in the Lion City. However, using a professional agency like Singapore Company Formation that specializes in incorporating businesses can make the process much more streamlined, efficient, and comprehensive.
Singapore Company Formation is fully versed in the ins and outs of setting up a company in Singapore, as well as the procedures necessary to ensure ongoing corporate compliance.
We can help you open a bank account, do your accounting and auditing, get your business licensed, register your trademark, and even set up a virtual office in addition to forming a company in Singapore and 27+ jurisdictions.
