The following article presents how to set up a private company in Singapore where this article also shows how to open the company through shares for a private company.
OPENING A COMPANY IN SINGAPORE
Registering a company in Singapore it is required to register under the Accounting and Corporate Regulatory Authority (ACRA). The company should abide by the rules and regulations of the law. This registration should be done for all types of companies. There are 5 types of companies in Singapore which are Sole Proprietorship, Partnership, Company, Limited Liability Partnership, and Limited Partnership.
Singapore is a good nation to open business because the country is limited by shares since it has a separate legal entity for shareholders. It is known to be taxable with their own right. Companies in Singapore as a result of shareholders are not liable for debts and losses as the amount is more than their share capital.
PRIVATE LIMITED COMPANY IN SINGAPORE:
A private limited company is a one which is limited with shares and has a separate entity for their shareholders. This type of company is meant to be taxable. According to their company where the shareholders will be present in the private limited company (PLC) will not take liability for the company’s debts and losses apart from the shared capital amount.
RESOURCES REQUIRED FOR REGISTERING A PRIVATE LIMITED COMPANY:
- It is mandatory to have at least a minimum, 1 shareholder
- 1 director who is a resident of Singapore
- 1 company secretary
- 1 paid-up capital
- 1 registered address
DOCUMENTS REQUIRES FOR PLC:
It is very important to choose a company name. it is recommended to include the functions of the company through the name of the company. Through the name of the company, it should be understood that what type is service and product is provided by the exhibited business. it should be sure that the name is unique and should not be taken by any other company. the company name needs to be attractive, unique and suitable according to the business. It should also be known that the company chosen must be going with .sg, .com, .org or any other extensions which are to be required in the company market.
Details of Business Activities:
Detail activities need to be documented and submitted to the authority during the registration process. These documents include:
- Shareholding pattern
- Shareholders agreements
- Details of shareholders
- Details of directors
- Registered address of the company
- Company Secretaries particulars
- Memorandum and Articles of Association (MAA)
- Appointment of an auditor
- Company business profile
- Incorporation certificate
- Share certificate
- First board resolution
- Bank account opening resolution
- Company seal
- Company stamp
- Annual general meeting (AGM)
- Annual returns
- Tax files
- Fiscal year determination record
Innovation and Capability Voucher (ICV):
Companies under ICV which mean Innovation and Capability Voucher scheme is a voucher that costs around $5,000 for professional consultancy services, hardware and technical solutions. The conditions for being eligible to buy the voucher is that the company should be physically present and registered in Singapore.
In this condition at least 30% should be allocated to the local shareholding and group annual sales for S$ 100 million or employment size for not more than 200 workers. The main key point is that all purchases must be done only after the approval of indicated items have been approved in the ICV application.
Opening a Corporate Bank Account in Singapore:
It is important to choose a proper bank while opening a Company in Singapore. It is important to choose what type of bank account is needed to open for the newly opened business. It must be understood that for each type of bank account there are different procedures and the duration taken for it also differs according to the bank account.
In some banks they offer waiver period which is offered for bank charges for any banking charges like depositing, withdrawing cash and checking the status of the account. In order to open a bank account, it is generally to be resolution by the company’s board of directors. In order to open the bank account, it is required to exhibit NIC, passport, residential address proof, all company directors address addresses and beneficial owners.
RESOURCE REQUIRED FOR A PRIVATE COMPANY BY SHARES:
Having 1 director is fine when the private company is opened with shares. When the board of directors are more than a member then at least there should be 1 director should be a resident of Singapore. There are high chances that the company articles can also state that there can be more than 1 director who can be a resident of Singapore. Therefore, there can be any number of members who can be a resident of Singapore.
A person who has shares in the company can be a subscriber of the shares. The subscriber can be a natural person who can also be present in the corporation. Even foreigners can be a shareholder in the company.
The office registered in Singapore should be physically present. This is in order to keep statutory reports and accept any service in the documents. The main purpose of the registered office is for accountants, lawyers and chartered securities.
In every business in a new company it is always recommended to have a company secretary who must be the resident of the country itself.
Share Capital: Every company should always open with a share capital. When the company is operated accordingly, automatically the bank account is opened. According to the company requirements, the share capital can slowly increase.