Post-incorporation Requirements for Regulations

About Post-incorporation Requirements

After your company’s incorporation, you must fulfil tasks for a new company before starting operations. Some are setting up the statutory books, purchasing a company seal, and registering for taxes and licenses. 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, and your directors should hold or pass the first resolution related 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 also thrives while serving Asia Pacific regions. The financial centres of Singapore offer a wide range of financial services, including insurance, banking, treasury services, and investment banking. You will likely have to open a local bank account to conduct a Singapore business. 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 most directors will be present when the bank account opens.

 

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 and free of ink, leaving 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 being used. The documents that the seal is affixed must normally be countersigned by at least one director and the secretary or two 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 shareholders. The issuance of these certificates must have a company seal and be signed by at least one director and the secretary or two directors.

Share certificates must be in the possession of each shareholder and a reissuance must occur 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 mainly responsible for managing and conducting the business. If there is a person or persons as the CEO or 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 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 creating and maintaining the company’s statutory books.

 

Appoint an Auditor

Dormant Singapore companies do not have to appoint an auditor if they can satisfy at least 2 of the 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 exceed S$10 million.
• Their full-time employees must not exceed 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 with this. 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 it, and it is at their discretion to choose when their FYE is. The company’s financial year duration cannot exceed 18 months during the year of incorporation.

If they change the FYE after incorporation, only the current FYE and previous financial year can 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 occurred. 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, requiring 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. When choosing accounting software, you must consult an accounting executive because most need training and prior knowledge. This significantly reduces the learning time.

 

Have a Registered Address

A company should have a registered office in Singapore, which must be accessible and operational during normal office hours. If your registration changes, you should notify ACRA within 14 days of the date change.
 
You must fulfil These post-incorporation requirements 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 their best assistance.