Singapore, the headquarters of the Asia-Pacific Economic Cooperation (APEC) and a revered global financial hub, is a highly developed free-market economy. The open market design makes it one of the most pro-business jurisdictions in the region. With its strategic location, which makes it pretty easy for companies to reach the neighboring markets, there is no doubt that Singapore is the perfect point for offshore company registration.
So popular is Singapore as a foreign destination for investors that its foreign direct investment (FDI) value has grown significantly since 1995. In the first quarter of 2022, Singapore reported an increase in FDI by USD27 billion compared to USD25 billion reported over the same period in 2021. This is only one of the indicators showing Singapore is the place to be, but first, you need to incorporate your company into the country.
In this post, we take a closer look at the most important things to get right when registering a company in Singapore.
The Main Advantages of Opening a Company in Singapore
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Singapore has a very supportive administration.
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The jurisdiction boasts of a large pool of qualified workforce.
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Singapore has a highly developed infrastructural network.
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It is one of the most open economies on the globe.
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Singapore has signed multiple bilateral trade agreements with other countries in APAC and across the globe to help companies registered there access a larger market.
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Low corporate income tax.
The Most Important Things When Registering a Company in Singapore
To be able to register a company in Singapore, it is important to start by understanding the company law. Then, ensure to get the following things right:
The officers of Your Company
For your company registration in Singapore to go through and operate securely, it requires a number of officers, including the following:
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Director/s: The company you are registering in Singapore is required to have at least one director. If you are the sole shareholder, it is possible to also serve as the director.
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A company secretary: After getting the certificate of incorporation, your company in Singapore is required to get a Company Secretary within six months.
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Shareholders: These are the original owners of the company because they provide the capital that will be used to drive the company. You will need to capture their details accurately, such as copies of their passports and proof of residence, to be allowed to register.
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Auditor: Every company registered in Singapore is required to appoint an auditor within three months of commencing operations. Only avoid this if you are exempted from audits.
The Company’s Name and Type
According to the Companies Act in Singapore, every business should have a unique name to avoid conflict of interest. Indeed, the focus on the company name should start long before submitting the documents for incorporation by submitting proposals to the Singapore Accounting and Corporate Regulatory Authority (ACRA).
To identify a good name for your company, consider checking other enterprises in Singapore and settle for something different. Here are some important considerations to factor in when looking for a company:
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Should be completely unique.
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Cannot contain obscene words.
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Should not infringe on other trademarks.
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The name should be currently reserved for other companies.
The Resident Company Director
Although Singapore allows investors and entrepreneurs to have 100% shareholding in their companies, there is one unique requirement: you must have a resident director. For companies that do not have people residing in Singapore or it might take some time before processing passes to enter and stay in Singapore, the best option is working with a nominee director.
This means that you identify a professional who resides in Singapore to act as the resident director for compliance with the Companies Act.
When selecting a nominee director, it is important to only bring on board a professional who can enrich the decisions that are employed by the board. The best way to identify a good nominee director is working with an agency of experts that have helped other companies identify top-notch nominee directors before.
In this post, we have highlighted the most important things that you should focus on when registering a company in Singapore. You should also make sure to have the right business structure and work with an agency for assistance with company registration.
The agency can help you with all the above requirements plus post-incorporation activities, such as bank account opening and strategy formulation. With the right agency on your side, you can never go wrong!