A Beginner’s Guide to Everything You Need to Know to Form a Private Limited Company in Singapore
Forming a new company in Singapore can be the start of an exciting new venture for any entrepreneur. Singapore’s little island nation offers a world of opportunities and endless possibilities in business, which comes as no surprise since Singapore has been voted one of the best places in the world to do business.
While Singapore has the option of three different business entities for entrepreneurs to choose from when it comes to establishing a business, you will find that most entrepreneurs prefer the option of a private limited company because of the flexibility that it offers. A private company is a company that is limited by shares, and it is a separate legal entity from its shareholders, which means it is also recognized as taxable entity. The good news is though that shareholders of this private limited company will not be liable for its debts and losses beyond their amount of share capital.
Ready to open your first private limited company in Singapore? Let’s get started.
Singapore Private Limited Company – Getting Started
The Accounting & Corporate Regulatory Authority – also known as ACRA – is the statutory board under the Ministry of Finance Singapore by which all companies who are intending to do business legally in Singapore must be registered with. If you are not registered with ACRA, you cannot do business in Singapore, it is as simple as that.
For an entrepreneur intending to open a private limited company in Singapore, take note of the following requirements, which are the key requirements needed to register a private limited company in Singapore:
- One resident director is required
- One company secretary is required
- At least one shareholder is required which must be an individual or corporate entity
- A physical office address is a necessity; no PO Box addresses will be permissible.
- Companies are required to have an initial paid-up share capital of at least SG$1
Those are the minimum key requirements that every entrepreneur intending to open a private limited company in Singapore is expected to fulfil. Once this step has been completed, entrepreneurs can then move on to the next phase, which is getting the necessary documents ready for the Singapore company registration.
Documents Needed to Start a Singapore Private Limited Company
The documents that will be needed to register a private limited company in Singapore include the following:
- Getting a Company Name – Ensure that the company name selected is unique and not already in use by another. Choose your company name wisely as it is an important step in building the reputation of the brand.
- Describing Business Activities – The Singapore Standard Industrial Classification Code 2010 will serve as a guideline for the kind of business activities your company will be engaging in.
- Explanation of Shareholding Pattern – Singapore private limited companies are required to issue one or more subscriber shares to its initial members.
- Shareholder Agreement – A proper shareholder agreement in place is essential to avoid any potential disputes in the future.
- Shareholder Details – A minimum of one corporate or individual shareholder will be required to form a private limited company in Singapore.
- Director’s Details – The director should be “ordinarily” resident in Singapore (citizen, permanent resident or work pass holder).
- Company Secretary Details – Company secretaries must be in place within six months of the company’s incorporation.
- Registered Address Details – Remember this must be a physical address only.
- Memorandum & Articles of Association – These documents specify the activities the company is engaged in and the rules governing the internal management of the company.
- Company Business Profile – To confirm the incorporation of the company.
- Incorporation Certificate – A hard copy can be purchased if needed.
- Share Certificate – Shows proof of shared ownership.
- First Board Resolution – To make the appointment of shareholders and directors official in the company.
- Bank Account Opening Resolution – To sanction the opening of a business account.