About Post-incorporation Requirements
After your company incorporation, you must fulfil tasks for a new company before you can start operations. Some of them are setting up the statutory books, purchasing a company seal, and taxes and licenses registration. Other tasks are related to the details of the business operations like bank account opening, setting up your office, company insurance, and more.
If you want to know more about what you need to do after your company incorporation, you must read on:
The First Board Meeting
During the early stages of your new company, there must be a first board meeting that your directors should hold or pass the first resolution that relates to organizing the company. It must include:
- Adopting the company Constitution that rules over the internal operations
- Using a company seal
- Authorization of issuing shares and other kinds of securities
- Choosing officers
- Confirm the company’s registered address
- Confirm when the first financial year ends
- Choosing an auditor, if necessary
- Making arrangements with your bank
- Taking care of other business needs
Open a Bank Account for the Company
Singapore is the world’s leading financial centre and it thrives while serving Asia Pacific regions as well. The financial centres of Singapore offer a wide range of financial services that include insurance, banking, treasury services, and investment banking. For you to conduct a Singapore business, you will most likely have to open a local bank account. There are stable international banks you can choose from in Singapore.
For you to be able to open a corporate bank account, the bank will ask for the company constitution, board resolution that sanctions the bank account opening, and identity proof from the company beneficiaries. Most banks will ask for the account signatories to be physically present and the majority of the directors when the bank account is open already.
Get a Company Seal
The company could have a seal when sealing important and official documents. This is normally called a “company seal”. These are metallic, free of ink, and it leaves an embossed impression of your company and registration number. Some official documents include share certificates and loan documents. The Seal must be kept under the company secretary’s control and should be authorized by the board before using it. The documents that the seal is affixed must normally be countersigned by at least 1 director and the secretary or 2 directors.
Issue the Share Certificates
The Share Certificate is a document certifying the ownership of a certain number of shares in one company. Singapore companies are obliged to issue this certificate to all the shareholders. The issuance of these certificates must have a company seal and signed by at least 1 director and the secretary or 2 directors.
Share certificates must be in the possession of each shareholder and a reissuance must take place once the shares are split, transferred, classified, or consolidated.
Appoint a Chief Executive Officer (CEO)
A company could appoint a CEO. It is a person who is mainly responsible for managing and conducting the business. If there is a person or persons as the CEO or if there are any changes in the CEO’s particulars, the company should inform ACRA within 14 days of the change or appointment.
Set Up the Statutory Books
Statutory books are the company’s legal records that are in their Singapore office. Since it is a public document, it can be requested anytime. These books must have current records all the time. The statutory books contain:
- Statutory books contain current information about corporate officers like auditors, directors, and secretaries. This information contains appointments and resignations.
- The shareholders’ names, how many shares each one owns, and details of share transfers if there are any.
- Information regarding the floating or fixed charges and debentures for securing what the company borrows.
- Resolutions and minutes of the meetings.
The company secretary is responsible for the creation and maintenance of the company’s statutory books.
Appoint an Auditor
Dormant Singapore companies do not have to appoint an auditor or if they can satisfy at least 2 of these following conditions:
- The total company revenue must not be more than S$10 million.
- The company’s total assets for the financial year must not be more than S$10 million.
- Their full-time employees must not be more than 50 when the financial year ends.
Get a Business Insurance
You must get general liability insurance, compensation insurance for your workers, and other business-specific insurance that applies to you. An insurance broker can help you in this process. The insurance must expand while the business grows. A corporate service provider can help you find a reliable insurance broker.
Financial Year End (FYE)
All companies should have an FYE as soon as they incorporate and it is in their discretion to choose when their FYE is. The company’s financial year duration cannot exceed 18 months during the year of incorporation.
In case they change the FYE after incorporation, only the current FYE and previous financial year are allowed to have this change. This is possible as long as the statutory deadlines for the AGM, annual return filing, and sending of financial statements have not taken place yet. Otherwise, the company should apply at ACRA to approve the change.
If the change leads to an FYE that is more than 18 months or if within 5 years the FYE was changed, it will be approved.
An Accounting System Must Be Set Up
Keeping track of your business’ income and expenses is important, and it should start from the day you start operating. It helps you monitor your business profitability and tax regulations in many countries require you to have an accurate record of your company’s transactions. Using an accounting system software can help you manage this function. Setting up an accounting system is something that you must not procrastinate on. You must consult an accounting executive when it comes to choosing an accounting software because most of them need training and prior knowledge. This significantly reduces the learning time.
Have a Registered Address
A company should have a registered office in Singapore, and it must be accessible and operational on normal office hours. In case your registration is changing, you should notify ACRA within 14 days of the date change.
These are the post-incorporation requirements you must fulfil before your company can start operating. You can contact a Singapore incorporation service provider like 3E Accounting because they are experts and you will get the best assistance from them.