Singapore is an attractive financial and economic host due to the presence of a lax tax system, flexible financial infrastructure and negligible bureaucracy.

The most common type of company setup for foreigners is the private limited company, a local incorporated company with 1-50 shareholders. There are also several advantages associated with setting up a private limited company.

As a private limited company business owner, you can protect your assets, unlike a sole proprietorship or a partnership. You will qualify for several tax exemptions under certain conditions. The dividend on the profit you are liable to pay your shareholders will further be exempted from tax, allowing foreign directors to apply for an employment pass.

If you want a company incorporation in Singapore but don’t know how to continue with the venture, fret not. This easy step-by-step review will help you get all the information needed to build your corporation within the country.

For a successful incorporation, you will need to follow a three-step procedure:

The preparation phase (In this phase, you will need to acquire approval for your company name, as well as prepare and sign all the obligatory documents)
The incorporation phase (This constitutes the submission of pre-requisite documents to the local authorities)
The follow-up or post-incorporation phase (This consists of obtaining necessary licenses and permits as well as opening bank accounts)

There are also several things that you need to consider before you incorporate a company in Singapore.

Choose the Type of Business Activity

The foremost consideration is determining the type of business that you want to establish. This can help you obtain the relevant permits from the relevant authorities in Singapore. These requirements also provide pre-requisite information for bank accounts, insurance companies, financial companies, educational and research institutions, and food-related industries.

A good incorporating service-providing company, like 3E Accounting Pte Ltd, can help you determine the type of business most suitable for your needs and advise you about the necessary conditions and permit requirements. Find the Singapore Standard Industrial Classification (SSIC) code in the Online Incorporation Form.

Choose a Unique Company Name

It is important to think of at least three or more names, just in case the first two are already taken/registered. Other reasons that can result in the rejection of your company name are infringement of rights under patent and trademark indecency. Suppose your company name includes words like school, bank or tourist agency. In that case, they will be subjected to another round of approval by the regulatory body of the Singapore Board of Registration, which can take up to 2 months. The normal name company registration process takes just a couple of hours.

Paid-Up Capital

Depending on your business type, a mere S$1 can initiate the company setup. For example, you must invest more than S$100,000 to set up a tourist agency.

Shareholders and Their Investments

You must identify and determine the number of company shareholders and each shareholder’s investment.

Determination of Directors

To comply with the Singaporean Business Regulations, your business/company must appoint at least one resident director until the interim foreign director receives an Employment Pass, after which the previous director can resign. All powers will revert to the newly nominated foreign director.

On the whole, though, a company set up in Singapore for foreigners is easy and efficient due to the number of professional firms like the 3E Accounting Pte Ltd that offer diverse services like incorporation, accounting, taxation, auditing, and immigration services. To learn more about our services, contact us today to learn how to incorporate your business in Singapore.