The Asian market has seen a lot of growth in the best decades. In fact, the countries in Asia are swiftly adapting to technological change and are becoming more open to global economic competition. One of the leading countries in this growth in Singapore. Singapore is known as the business capital of Southeast Asia. That is because the company incorporation Singapore process is one of the simplest applications in the world. This resulted in many businesses emerging in the country.
The company formation Singapore procedure is relatively easy since it can be done online. It usually takes only one to two hours to get your business registered. It can be a lot faster if you hire the services of a company incorporation Singapore firm. However, many business owners had stated that the difficult part of the company formation Singapore process is meeting the requirements. If you are interested in starting a business in Singapore, here are the 5 company incorporation Singapore requirements.
Requirement #1 – Paid-up capital
The paid-up capital requirement in Singapore is actually the lowest in the world. You only need 1 Singapore dollar to get a company registered in Singapore. The Singapore government had observed that the biggest reason why people are not thinking of starting their businesses is because of the capital that they need to provide.
Having the capital to cover all your initial expenses is important. That is why to lessen the cost, Singapore only requires a minimum of SG$1 for the company formation Singapore application. As a result, an entrepreneur doesn’t need to provide a large amount of capital upfront for the company incorporation Singapore registration.
Requirement #2 – Shareholder
The shareholder serves as the owner of the company in Singapore. In Singapore, a private company can have up to 50 shareholders. However, in the company formation Singapore application, you only need one shareholder. Other countries will require that the majority of the shareholders should be citizens of theirs. However, in Singapore, it is allowed for a foreigner to own 100% of his or her company. For that reason, the foreign business owner can be the sole shareholder of the business.
Requirement #3 – Director
Every company in Singapore needs to have a corporate director. The director serves as the main manager of the company. He or she can either be the CEO or COO of the company thus making him or her a decision-maker. They can be selected from one of the shareholders or hire a professional for the job. There can be more than one director in a Singapore company.
However, in meeting the company incorporation Singapore requirements, the business needs to have one director that is a Singaporean citizen. That is why if the owner of the business is a foreigner, he or she can’t act as the only director of the company. They need to hire a Singaporean citizen to fill this role. In some cases, businesses hire a nominal director. This type of director is hired for the purpose of complying with the company formation Singapore qualifications. This means they only serve as directors in name and have no decision-making rights.
Requirement #4 – Secretary
Aside from the company director, every business in Singapore also needs to have a corporate secretary. The secretary is responsible for making sure that the business is following all its statutory requirements. These include annual tax filing and company incorporation Singapore annual compliances. Their other duties also involve ensuring payment of dividends to shareholders, reminding the director of compliance meetings, and maintaining company records as mandated by ACRA. For this role, only a Singaporean citizen is permitted.
Requirement #5 – Office Address
Last but not least, every business needs to have an office address. The office address should be located in Singapore and not overseas. Even if it is a remote business, there should be a physical address where all the company formation Singapore documents are found. It is stated that a P.O. Box address is not valid to be an office address. It needs to be a physical location so authorities can visit and make the necessary inspections.
Incorporate a business in Singapore with WLP Group
Once you have settled these 5 main requirements in the company incorporation Singapore application, you can now prepare for the application process. However, it is important to take note that there are more requirements that are dependent on what type of business you will register. You can research for the specific qualifications online through the ACRA website or other credible sources. If you wish for a company formation Singapore expert to help you, inquire with WLP Group.