Private limited company is the most flexible business entity, which can be launched in Singapore. However, it is necessary to get it registered first with ACRA and follow Companies Act, stringently.
Incorporation process can be done with the help of professionals. Actually, it just takes a few hours, but all the required details and documents need to be complied in advance.
Private limited company means limited by shares. On its own it is a recognised taxable entity. Shareholders of private limited company in Singapore are not responsible for losses and debts beyond their share capital amount. The major requirements for registering a company in Singapore are –
- 1 shareholder [minimum]
- 1 resident director
- 1 company secretary
- $1 initial paid share capital
- Physical office address in Singapore
Considerations and Documents needed for company incorporation in Singapore
Name of the company –
The name needs to include business activities and match the domain name. This is crucial for creating brand awareness.
Describe business activities –
Use the SSIC 2010 code for choosing business activities to engage in.
Shareholding pattern –
One or more shares can be subscribed to initial members. Capitalization can be increased by issuing more shares.
Total number of existing shares multiply by each share’s nominal value is equal to the company’s issued share capital.
Shareholders agreement –
Shareholder’s agreement defines the respective rights and responsibilities of a shareholder. Therefore, it needs to be appropriate, so as to avoid disputes in the future.
Shareholder details –
Shareholder and director can be a different or the same person. 100% foreign or local shareholding is allowed, but maximum number of shareholders in private company is just 50.
Director’s details –
One director needs to be a citizen of Singapore holding employment or entrepreneur pass or dependant pass with home address in Singapore.
Registered address –
A valid physical address needs to be included in the application form because all legal correspondences will be mailed to this address.
Appoint a Secretary –
A company secretary with domain knowledge needs to be appointed within 6 months of incorporation.
Appoint an auditor –
An auditor needs to be appointed within 3 months of an approved registration process unless your business is not liable for audit needs. Your company can come under exempted category, if there are less than twenty shareholders and the annual turnover is less than $5 million.
MAA [Memorandum & Articles of Association] –
Memorandum specifies the business activities and Articles of Association defines rules governing internal company management.