Company Set Up

Setting up a company in Singapore involves several key steps, which are outlined below:

Choose the Type of Company: The first step is to choose the type of company that you want to set up. In Singapore, there are several types of companies, including private limited companies, sole proprietorships, partnerships, and limited liability partnerships.

Choose a Company Name: Once you have decided on the type of company, you need to choose a name for your company. The name should be unique and not already registered with the Accounting and Corporate Regulatory Authority (ACRA).

Register the Company: The next step is to register your company with the ACRA. This involves filling out the necessary forms and providing the required documents, such as the company constitution, the director’s and shareholder’s particulars, and the registered address.

Obtain Necessary Licenses and Permits: Depending on the nature of your business, you may need to obtain licenses and permits from other government agencies, such as the Monetary Authority of Singapore (MAS) or the Urban Redevelopment Authority (URA).

Set up a Corporate Bank Account: Once your company is registered, you need to set up a corporate bank account. This will allow you to receive payments from customers and make payments to suppliers.

Hire Employees (if necessary): If your company requires employees, you will need to hire them. This involves recruiting, interviewing, and selecting suitable candidates, as well as setting up payroll and benefits.

Register for Taxes: You will need to register your company for taxes with the Inland Revenue Authority of Singapore (IRAS). This includes registering for goods and services tax (GST) if your company’s annual revenue exceeds a certain threshold.

Other matters to take into consideration when setting up a company

Insufficient capital : One of the main requirements for incorporating a company in Singapore is having a minimum paid-up capital of S$1. This amount may not be sufficient for certain business activities or industries, so it’s important to assess the actual capital needs before incorporating.

Incorrect business structure : Companies can be structured as sole proprietorships, partnerships, limited liability partnerships (LLPs), or private limited companies (PrLCs) in Singapore. Choosing the wrong structure can have legal and financial consequences, so it’s important to seek professional advice and understand the advantages and disadvantages of each structure.

Lack of understanding of local regulations : Singapore has strict regulations on areas such as employment, taxation, and intellectual property. Failure to comply with these regulations can result in penalties or legal issues, so it’s important to familiarize oneself with local laws and regulations.

Poor choice of company name : The name of the company can impact its brand and reputation. Businesses should avoid choosing names that are similar to existing companies, offensive or obscene, or misleading in nature.

Lack of preparation for compliance requirements : Companies in Singapore are required to comply with annual filing requirements such as submitting annual returns and holding annual general meetings. Failure to comply with these requirements can result in penalties and legal issues.

To avoid these common pitfalls, it’s recommended to seek professional advice and work with a reliable service provider that can guide businesses through the incorporation process and ensure compliance with local regulations.