Singapore is one of the most advanced and economically developed Asian country. The commerce and business environment of this country is rated as one of the best in Asia Pacific.
The welcoming tax laws and favorable intellectual property laws of Singapore has made it one of the most sought after business haven for businessmen.
Apart from the national residents, people from different countries are interested in Singapore company setup so that they can make the most out of their business investment.
This tiny Asian country is flocked by industrialists who are interested in business conglomerates and starting small and medium sized businesses.
Starting up a company in Singapore:
Before one considers taking Singapore company formation services, they should know that the majority of businesses in Singapore are registered and recognized as private limited companies.
This type of company is highly favored by most of the people and it is also the most common type of structured tax entity. Singapore company setup is an easy process if one knows how to go the right way.
Any local or foreign entrepreneur above the age of 18 years can legally register and start a business in Singapore. In order to fully operate a legal business in this country, one must fulfill legal and regulatory requirements through a professional firm.
It is important to take Singapore company formation services from a professional firm in order to fulfill all the legal processes. A professional registration company has the authority to get a company registered or incorporated in Singapore.
Prerequisites of Singapore company setup:
There are some prerequisites that need to be fulfilled before starting up a company in Singapore. They are as following:
Company Name: The name of the company is very important for any new business startup. Before Singapore company setup, the name of the incorporation must be approved.
Directors: Directors are an indispensable part of any company. The appointment of a resident director is absolutely necessary before one can start a business in Singapore.
According to Singapore company law, a resident is the one who is a Singapore citizen, a permanent resident, or a person holding passes like Dependent Pass, Employment Pass.
The legal minimum age of the director is 18 years; and there is no limit on the number of additional directors that can be appointed. It is not necessary for the directors to also be shareholders of the company.
One can be appointed as a director even if he is not a shareholder of the Singaporean company. The director should not be bankrupt or convicted in any legal case.
Shareholders: When a person takes Singapore company formation services then the concerned person is notified that there should be at least one shareholder of the company. The maximum number of shareholders is 50. The shareholders can be both national citizens and foreign nationals.
Company Secretary: Every company in Singapore must appoint a qualified secretary within 6 months of incorporation, as per Section 171 of the Singapore Companies Act. The appointed secretary must be a national resident.
Paid-up Capital: Paid-up capital, also known as share capital, is important for any business incorporation. The minimum capital for Singapore business setup is S$1 which can be increased anytime after company setup.
Registered Address: One must provide a local national address before starting a business in Singapore. One cannot give a P.O. Box address but have to give a physical address that is either commercial or residential.
Taxation: There are various incentives and tax exemptions for Singapore registered companies. These attractive tax benefits are the reason why so many international businessmen choose to invest in and start a business in Singapore.
Chris Kam is the Director at Budget Accounts Pte. Ltd., Singapore. He provides expert advice in areas of corporate accounting, tax planning and cost savings. With his extensive experience in this field, he is successfully guiding clients in Company formation and setup services in Singapore and helping investors to achieve their financial goals.