INCORPORATION
A Must-Know Guide to Incorporation
Incorporation may be a foreign term to you, but there’s no need to worry! With this guide, we’ll make sure you leave the page with all you need to know. Yes– it may seem like a complicated process, but with ScAilable, we streamline and simplify it just for you! Everything can be done online with ease, with our seasoned professionals.
Before we dive in, you may be wondering: What’s the difference between Incorporation and Registration? Are they interchangeable? The answer is: not quite. Incorporation is a more general term which refers to creating a legal business entity. Registration, on the other hand, is a step in the incorporation process, referring to the specific process of “signing up” your company with the government.
Why Register Your Company in Singapore?
If you’re an aspiring entrepreneur who is looking to up your business game, and you’re looking for the perfect place to start your business and grow exponentially, Singapore is exactly what you’re looking for.
A Gateway to Asia-Pacific
- Singapore is strategically located in the heart of Asia. It connects businesses to economic powerhouses like China and India, making it a vital trading hub in the global scene, especially with the long list of trade agreements Singapore has signed with over 100 countries. Choosing Singapore will undeniably give you an upper hand when it comes to scaling and expanding your businesses.
Business-Friendly Environment
- Taxes are a make or break in the business world. Good thing is, Singapore has one of the lowest corporate tax rates in the world– at just 17%. This gives aspiring entrepreneurs like you a conducive environment for your start-up. Incorporating in a country like Singapore with the help of a company like ScAilable means you can enjoy a hassle-free registration process.
Political Stability and Transparency
- Singapore is known to be one of the most politically stable countries in the world. The transparency and stability in Singapore ensures that your company is in good hands and saves you from any risky gambles or additional worries. Registering your company in Singapore is a safe bet.
Company Registration Requirements
Company Name
- Must be unique and approved by ACRA, and cannot be identical to existing names, or infringe trademarks.
- Use our online checking tool to check the availability of your company’s name.
- Not sure what company name to pick? Our team at ScAilable are happy to help you find the perfect name that sets you apart
Directors
1. At least one director must be a Singapore resident (Singapore Citizen, Singapore Permanent Resident or an EntrePass/Employment Pass holder)
2. Directors must be at least 18 years old
Shareholders
1. Have at least 1 shareholder (individual/ corporate entity)
2. Private Limited Companies (Pte Ltd) can have up to 50 shareholders
3. Shareholders can be local or foreign, 100% foreign ownership is allowed in Singapore
Company Secretary
1. A qualified company secretary must be appointed within 6 months of incorporation (must be a Singapore Resident). If you’re not sure where to find one, ScAilable has skilled Company secretaries who are more than happy to help.
Click here for more information.
Paid-Up Capital
1. Paid-up Capital is the amount of money shareholders invest in a company when it first begins. There is a minimum paid-up capital of SGD 1.
Registered Office Address
- It is compulsory to have a local physical address.
Company Constitution
- A Company Constitution must be prepared, which outlines the regulations and rules a company must follow.
Compliance with Licensing and Permits
1. Depending on your business type, you may be required to apply for specific licenses or permits upon registration
Tax Registration
1. Businesses with an annual turnover of over SGD 1 million must register for GST via the IRAS website.
What Company Types are there?
There are various types of structures you may choose to start, and each type carries its own set of advantages and requirements. They broadly fall under these 4 main categories:
Companies
- Private Limited Companies (Pte Ltd)
- Exempt Private Companies
- Subsidiary Companies
- Limited Companies
- Holding Companies
- Family Offices
- Variable Capital Companies
Offices
- Branch Offices
- Representative Offices
Proprietorships
- Sole Proprietorship
Partnerships
- Partnerships
- Limited Liability Partnerships
How do I pick the right one for me?
Each company type comes with its own set of pros and cons. Here are 4 questions you can ask yourself when picking a company type:
How much of a risk do I want to take?
Different company types come with different levels of risks. Take for example Partnerships. There is a higher individual risk as compared to Private Limited Companies as each partner is liable for the action and decision of the other partners. This means that if one of your partners is in debt, every single partner will be responsible for paying it, even if it wasn’t their fault.
How much control do I want?
What are my plans for my company's growth?
What levels of tax, compliance and requirements am I willing to handle?
Reading and complying with the long lists of regulations can be a headache, and some company types have it worse than others, so it is crucial to consider how much you can handle. Companies like Private Limited Companies and Variable Capital Companies are more highly regulated and thus have to comply with more requirements, such as extra licenses, whereas Branch Offices and Representative Offices are not subject to the same level of compliance, and the regulatory oversight is very minimal.
Nominee Directorship
What is a Nominee Director? Do I need one?
At ScAilable, we provide pre-approved expert nominee directors who will help you navigate through the business scene with their rich knowledge. Ultimately, their role is to always do what’s best for the company.
A Step-by-Step Guide to Incorporation with ScAilable
Step 1:
Do Up a Business Strategy
If you fail to plan, you plan to fail– which is why making a game plan for your business is a must. With our experts at ScAilable, we will help your company dream big. It always starts with a vision, and then a concrete plan on how to reach that vision. We will guide you through every step of the way and ensure your dreams become a reality.
Step 2:
Create a Unique Brand Identity
No one likes copycats. If you’re no different from all the other companies, it’s easy to blend into the background. Having a distinct and original identity for your company ensures you stand out in the crowd of millions. This makes sure you have a key selling point, and a reason for your customers to love you.
Step 3:
Prepare the necessary documents
Paperwork is the boring but crucial bit of incorporation. The necessary documents are the core of the registration process and ensures your company is compliant with the law. ScAilable will ensure that every document is precise and ready as soon as possible, which makes the job 10 times easier.
Step 4:
Registering with ACRA
Registration occurs online via ACRA’s BizFile+ portal. ScAilable will efficiently navigate the portal for you and go through the registration process — not missing any steps along the way. We ensure our services are swift, without compromising on quality.
Step 5:
Post-Registration Tasks
Your journey doesn’t end after registration — it’s just beginning. After registration, there are more crucial steps such as opening a corporate bank account and applying for the necessary business licenses. ScAilable will take you through the many next steps, one by one, and help build a strong foundation for your business.