To register a company, the directors and shareholders must agree to be bound by the Code. Even if you are the only person in your company, you are still considered the director and will be held responsible for compliance. The owner will be required to implement the Code’s provisions, maintain its provisions, and report on them to ACRA on an annual basis.
#6 Company secretary
If you are the sole director or shareholder, you will be the company secretary and will be responsible for the company’s compliance. However, if you have a company secretary, you will not be held responsible for any non-compliance.
The cost of hiring a company secretary will depend on the location and characteristics of the company. Most of the time, When one decides to pursue entrepreneurship and a new company setup process, you have already shown your ability to lead and a desire to see your project succeed. You’ve decided to take the next critical step toward realizing your vision, which is to register your company but keep in mind that this phase entails many critical stages that require careful consideration. The following article provides a summary of the four considerations you should make before your business registration Singapore process.
#1 The organizational structure
The structure or form of organization that is most appropriate for your new company setup process must be determined. This will be heavily influenced by the essence of your market and organizational strategy.
If your new company setup process is less risky and unlikely to generate legal claims, and if you plan to start small and slowly expand, you might want to consider a sole-proprietorship. If you plan to work with another person rather than going it alone, you will register your company as a partnership firm. The registration fee and annual enforcement requirements are very low and will be taxed at personal income tax rates. However, the disadvantage of these companies is their lack of immunity, which means that the owners’ personal properties will be attached in the event of any legislative claims.
If you want to limit your liability and benefit from low registration costs and minimum ongoing compliance requirements, limited liability partnerships (LLPs) are the best option. Additionally, when registering a Sole-Proprietorship, Partnership, or Limited Liability Company, it is your responsibility to keep your CPF Medisave donation current, which requires receiving a letter from the CPF Board.
What is LLC?
Among SMEs, Limited Liability Companies are the most prevalent organization category. Entrepreneurs who wish to restrict their responsibility and alienate their assets in the event of a legal claim choose this entity form. This is a perfect new company setup process because it lends the company more legitimacy and can aid in the acquisition of investments or loans. Additionally, it simplifies succession planning and ownership transition. You will be able to take advantage of Singapore’s favorable corporate tax rate and the tax exemptions open to new business registration Singapore procedures.
However, the principal incorporation fee and continuing compliance provisions for Limited Liability Companies are relatively onerous. A Limited Liability Company must have at least one director and shareholder, though they may be the same person. At least one director should be a Singaporean by birth. Foreign nationals who do not possess the required residency or employment visas can utilize the resident director services provided by corporate service providers.
Before the business registration Singapore process, you should carefully consider the essence of your company, your potential goals, and your willingness to comply with regulatory requirements. If you want to work on a very small scale or as a freelancer, a Sole Proprietorship or Partnership is adequate – this is the vehicle most self-employed people use. However, if you have ambitious growth ambitions, intend to hire additional employees, or your business entails risk, it is prudent to form a limited liability corporation.
#2 The company’s name
Although the name you select for your business registration Singapore process must be special and pertinent to it, it must also be approved by the company registrar. Choose a name that is not vulgar or obscene. It must not infringe on any current trademarks or be too similar or equivalent to those of other businesses. The approval process is fast, taking less than an hour, but if the chosen name contains such restricted terms concerning regulated and strategic sectors such as banking, law, finance, or media. The name will need to be reviewed by the appropriate government agency or authority. Approval can be postponed by a few days in such situations.
To prevent delays or disappointments, review the name available before making a selection. You can submit it online via ACRA’s website. Ascertain that the name you choose accurately reflects your business’s ideology, design, product or service, and positioning. Nowadays, it is also important to verify that the name is usable as a domain name for the website you plan to create. It is important to have a website or, at the very least, a professional-looking email address for which the domain name must be checked for availability.
A name that has been accepted will be kept for 60 days from the date of submission. You will renew the name for an additional sixty days by submitting an extension request before the expiration date.
#3 Address of registration
At the time of the new company setup registration process, you will be asked to provide a physical address in the region. All official correspondence and notifications will be sent to this address exclusively. The premises must have been licensed for commercial use by the Urban Redevelopment Authority (URA).
Any small business owner or who wants to work from home to save money on office rental costs during the early years must seek permission under the Home Office Scheme (HOS). If the residential property is an HDB flat, the Housing Development Board approval is required. If the structure is a private residence, the URA is the appropriate approval authority. Notably, businesses operating under HOS are not allowed to display signage or hire more than two non-residents at that address. Certain forms of businesses are prohibited under the program, so check that your business is not included on the list.
#4 Commercial licenses
Certain forms of companies are required to obtain licenses as a part of the business registration Singapore process. While you will be able to apply for licenses and permits only after completing the Accounting and Corporate Regulatory Authority’s (ACRA) business registration process. A business owner should familiarize herself with the regulatory regime that applies to your business in advance. This will keep you out of trouble with the law. To determine which licenses and permits are required for your particular company the owner can consult the License One website.
Restaurants, educational institutions, financial institutions, and entertainment establishments all need licenses and permits from different government agencies. A restaurant, for example, would include a Food Shop License from the National Environment Agency, as well as a Liquor License and a Public Entertainment License from the Singapore Police Force.
If your new company setup process is related to the utilities, transportation, or IT sectors, you must register with the Infocomm Development Authority (IDA). It is required to register with the Land Transport Authority (LTA) for the following businesses: operating a taxi, limousine, or school bus service. Additionally, if you want to provide telecommunications services, you must register with IDA.
You will be required to apply for a business permit from the relevant regulatory agency and a license from ACRA before you can proceed with the business registration Singapore process and obtain your UEN.
#5 Be familiar with the ACRA Corporate Governance Code
The ACRA Corporate Governance Code outlines required practices for good corporate governance and compliance for Singapore companies. It applies to all directors, board members, and key officers of a company, including the company founder. All businesses are required to adopt the Code, though certain categories such as small businesses are exempt from certain provisions.
the company secretary is a professional corporate service provider that has been registered as a company under ACRA. It is also possible to be a company secretary for your own business or to share the position with another person.
#7 Nominating a private company secretary
As the sole director or shareholder of a private company, you may nominate a private company secretary. This person should be a Singaporean or a permanent resident. It is possible to be both the company secretary and the director or shareholder. One will still be required to hire a separate company secretary and to pay the relevant fees. The company secretary is required to complete the appropriate forms and must be approved by the Internal Affairs Department (IA)
Register your business today
WLP Group is a business registration and incorporation firm that takes pride in assisting clients in dealing with relevant laws. We provide expert advice and handle regulatory and legal obligations for the business. This is to ensure that as your company grows and expands, it complies with Singapore law. Make an appointment with us today to receive reliable and high-quality services.