Singapore is renowned for its robust economy and business-friendly environment, making it an attractive destination for entrepreneurs and investors looking to start a corporation. The process of forming a corporation in Singapore is straightforward, supported by the government’s pro-business policies and efficient regulatory framework. This article will cover the essential aspects of starting a corporation in Singapore, including the requirements, types of corporations, steps to formation, and the necessary documentation.
Requirements to Start a Corporation in Singapore
Before initiating the process of forming a corporation, there are several requirements to start a corporation in Singapore (1)(2):
- Company Name: The proposed company name must be approved by the Accounting and Corporate Regulatory Authority (ACRA) before it can be used for registration.
- Shareholders: A Singaporean corporation can have between one and fifty shareholders, which can be individuals or corporate entities, locals or foreigners.
- Directors: At least one resident director (a Singapore citizen, a Singapore permanent resident, or a person who holds an Employment Pass/Dependant Pass with a residential address in Singapore) is mandatory.
- Company Secretary: The company must appoint a qualified company secretary within six months of incorporation. The secretary must be an individual who is both a citizen of Singapore and resides there.
- Paid-up Capital: The minimum paid-up capital for registration is S$1, but higher capital may be required for specific business activities.
- Registered Address: The corporation must have a physical registered address in Singapore. This cannot be a P.O. Box.
Requirements to Start a Corporation in Singapore
Types of Corporations in Singapore
Singapore offers various types of corporations to accommodate different business needs and strategies (3)(4):
Types of Corporations in Singapore
Steps to Form a Corporation in Singapore
The process of incorporating a corporation in Singapore is efficient and can often be completed within days. Here are the key steps to form a corporation in Singapore (2):
- Approval of Company Name: Submit the proposed company name via ACRA’s online filing system. The name should be unique, desirable, and not misleading or reserved.
- Prepare the Necessary Documents: This includes the company constitution (formerly known as Articles of Association), which outlines the company’s rules and regulations.
- Registration: File the incorporation request with ACRA, along with the necessary documents and information about shareholders, directors, and the company secretary.
- Pay the Registration Fee: A nominal fee is charged by ACRA for the incorporation of a company.
- Open a Corporate Bank Account: Once the company is registered, you can open a corporate bank account in any of the major banks in Singapore.
- Apply for Business Licenses and Permits: Depending on the type of business activities your corporation will engage in, certain business licenses and permits may need to be obtained before you can commence operations.
Steps to Form a Corporation in Singapore
Documents Required for New Company Incorporation in Singapore
Typically, the following documents are required for new company incorporation in Singapore to ensure a seamless registration process (5):
- Company Name Approval Receipt: Obtained from ACRA after the successful reservation of your company name.
- Signed Consent to Act: From each director and the company secretary.
- Identification and Residential Address Proof: For each shareholder and director, typically a copy of the passport for foreigners or an identity card for locals.
- Company Constitution: A document that describes the company’s structure and rules governing its operations.
- Statutory Declaration of Compliance: A declaration that all the requirements of the Companies Act have been complied with, usually prepared by the company secretary or one of the directors.
Conclusion
Starting a corporation in Singapore is a relatively straightforward but thorough process that benefits from the country’s stable political environment, favorable tax policies, and transparent legal system. With its strategic location and robust economy, Singapore continues to be a top choice for businesses looking to expand in Asia and globally. By understanding the types of corporations available, meeting the initial requirements, and following the steps for incorporation, entrepreneurs can effectively establish a successful corporation in this vibrant business hub.
