Singapore Company Formation tips by Rikvin
Moving any complex organization to a different country takes serious consideration and planning. There are a great number of variables to consider like tax rates and legal status. Due to its low tax rates and the ease of setting up and incorporating a business, Singapore has become one of the most welcoming countries in terms of supporting businesses and entrepreneurship. Below is a quick fact sheet on what to consider when thinking about transferring an existing business or a new Singapore incorporation in the global business hub in Southeast Asia. The Singapore Companies Act, Chapter 50, govern the rules on how companies are incorporated. It is also registered with the accounting and Corporate Regulatory Authority or ACRA. The company is separate from its owners, thus investors and shareholders in most cases are not liable if the company is not financially successful. They could only be held liable for the initial investment by the shareholders in private limited companies.
In setting up a private limited company under the Singapore Incorporation regulations, the business should use the “Pte. Ltd.” Or “Ltd.” which recognizes limited liability. A name that connects a business to another sovereign nation is not allowed. It is only allowed to use specialist words denoting regulated activities such as bank, finance, insurance, university and others when the necessary accreditation has been proven satisfactory by the relevant monitoring agency. It is not permitted that offensive names or those that plagiarize too closely on existing bands be used. An application must first be made to the Registrar of Companies before your business could pass the Singapore Incorporation procedures.
The Memorandum and Articles of Association also must be supplied to the Registrar. The Memorandum explicitly sets out the details of the company’s operations while the Articles supply the governance and management structure of the company.
There must be at least one shareholder that will be on file and public. Nonetheless, a nominee shareholder can be afforded some degree of anonymity. Although, there is no minimum requirement for a share capital, at least $1000 is recommended to be invested. This has been in effect since 1 April 2004.
The director needs to be a resident of Singapore, which can either be a Singapore national or an individual with the relevant visa or employment permit. The Director will also be on public file, though the individual can remain anonymous with a similar mechanism as that of the shareholder nominee. One restriction on a Director is that he cannot be made the company secretary at the same time. It is advised that a business must maintain a registered office and a secretary in the country in order for it to maintain a tax status for Singapore Incorporation. The Registrar must also be provided with this information.
Rikvin has effectively facilitated the Singapore company formation and Singapore representative office for both non-resident and resident financiers build business firms in Singapore.
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