Singapore is one of the countries you should consider investing in because it has been ranked as the world’s leading business hub. it is highly urbanized and has a high income per capita. From the different business entities you can set up in Singapore, a private company is more secure and likely to attract more investment because it is limited by shares, and investor properties are protected in case the company lands into financial challenges. To start a limited company, you need to know and follow a few guidelines that are necessary for the formation of a private limited company. Here are some of the requirements that you should fulfill to be eligible to start a business in Singapore.
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Choosing the business name
Choose a business name that is short and pleasant to attract your target customers and to build your brand. Your name should also match an available domain name to increase the chances of your business being searched on the web. As you know, many businesses are doing well online.
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Choosing your business activities
These entail all the activities carried out in the course of business with the aim of generating profits. Business activities should be legal.
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Shareholders pattern
This shows how the shares of the company have been split among the owners. In Singapore, it is a must that the initial members are given at least one or more subscriber shares. You can register your company with a minimum paid-up capital of $1.
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Shareholder agreement
It defines the specific rights and obligations of each shareholder in order to avoid future disputes—both during the relationship and after it ends. It is advisable to seek legal advice when drafting this document to protect the rights of all parties.
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Shareholders’ details
The business requires at least one shareholder who can act as both a director and a shareholder. The private limited company can have from 1 to 50 shareholders, who can be all locals or foreigners.
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Detail of directors
There should be at least one director who is ordinarily a resident of Singapore. In the case that they are a foreigner, they should hold an employment pass/entrepreneur pass, or a dependent’s pass.
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Registered address
It is beneficial to register with a physical address to receive correspondences from your customers and for official purposes.
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Company’s secretary
The company is required to appoint a secretary within six months of incorporation. They are responsible for all the company’s regulatory compliances.
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Memorandum and Articles of Association
You can choose to get a standard M&AA (Memorandum of Association and Articles of Association) that is designed to suit companies in most instances. The Memorandum specifies activities the company may get involved in, while the Articles of Association outline internal management.
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Appoint an auditor
A company should appoint an auditor within three months of incorporation.
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Company profile
The Singapore Company Registrar will issue an email to confirm incorporation, which is the identification number issued by the government.
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Incorporation certificate
This is a hard copy of the certificate of incorporation.
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Share certificate
This indicates shares distribution to the shareholders.
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First board resolution
It shows the appointment of directors and shareholders.
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Bank account opening resolution
The company should have its own bank account because it is a separate, legal entity from the shareholders and directors.
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Company seal and stamp
These two are not a must, but it is advisable to have them to affirm the business’s credibility when you start a business in Singapore.
