Even if you’re just starting out, you need to understand the legal responsibilities involved in running your own business. Many people believe that they can just register their company online, and they’ll be good to go—but that couldn’t be further from the truth! In order to have any chance of success, you need to know these five things about business incorporation in Singapore and how it affects your legal responsibility as an entrepreneur.
- Getting a Company Tax Number
Business incorporation in Singapore is a process that takes about two weeks. The first step is to get a company tax number from the Inland Revenue Authority of Singapore (IRAS). This can be done online or at the IRAS office. Once you have your company tax number, you will need to submit a Business Profile with the Accounting and Corporate Regulatory Authority (ACRA). The Business Profile will include information such as the company’s name, address, directors, shareholders, and type of business. After your Business Profile is approved, you will need to pay the incorporation fee and submit the required documents to ACRA. Once your company is incorporated, you will need to open a corporate bank account and apply for a business license. If you are starting a limited liability company, then you will also need to register it with the Monetary Authority of Singapore. You may also want to consider having an insurance policy on your property or liability coverage if someone gets injured on your property during work hours. If there are any changes to the company like new shareholders, location change, alterations in scope of operations, etc., then you must submit notification to ACRA and update them by filling out another Business Profile form.
- Registering your Name as Trademark
Business incorporation in Singapore is a process that allows businesses to operate under a legal entity. This process can be complicated, but there are a few things you need to know before you start.
First, you need to choose a business name and register it as a trademark. This will prevent other businesses from using your name and confusing customers.
Second, you need to decide on the business structure. There are four main types of business structures in Singapore: sole proprietorship, partnership, limited liability partnership, and company.
Third, you need to open a corporate bank account. This account will be used for all financial transactions related to the business.
Fourth, you need to apply for the relevant licenses and permits. Depending on what type of business you have, this could include an employer’s license or certificate of fitness. Finally, once everything has been sorted out, you can submit your application for registration with the Registry of Companies. Once approved, this registration will allow you to use Pte Ltd after your name when conducting business.
- Registering your Business Name with ACRA
1. Every business in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA).
2. You can register your business name online through BizFile+, which is ACRA’s e-services portal.
3. The process is relatively simple – you just need to choose a business name, provide some personal information, and pay the registration fee.
4. Once your application is approved, you will receive a confirmation letter and an official Certificate of Registration.
5. Keep in mind that you will need to renew your registration every year.
6. You can do this online through BizFile+ or by submitting a paper form
- Establish your business location
When incorporating your business in Singapore, you’ll need to provide a registered address for your company. This is the address where official correspondence from the government and other businesses will be sent. It can be a residential or commercial address, but it must be a physical location – P.O. boxes are not allowed. Once you have your registered address, you’ll need to update it with the Companies Registrar whenever you move locations. The easiest way to do this is by completing the change of registered office form on their website.
- Decide on an official working address
Your business will need an official registered address in Singapore. This is where your company will be based and where all official correspondence will be sent. You can not use a P.O. Box as your registered address.
Your business must have a physical presence in Singapore, meaning you’ll need to rent or lease office space. The amount of space you’ll need will depend on the size and nature of your business.
You’ll also need to appoint at least one director who is a Singapore citizen, resident, or EntrePass holder. This person must be above the age of 18 and cannot be an undischarged bankrupt.
Shareholders are not required to reside in Singapore, but at least one director must be a local resident. If you are setting up a partnership, there must be at least two partners. If setting up a private limited company, there needs to be at least one shareholder and one director.
A limited liability partnership (LLP) can either have 2 partners and 1 director or 1 partner and 2 directors. If it’s just 1 partner and no directors then it’s called an unlimited liability partnership (ULP).
When incorporating your business in Singapore, there is no restriction on shareholding percentage for any type of legal entity – if you want 100% ownership of the company then this is possible with any type of legal entity including a sole proprietorship.