• Skillridge Partner Blogger

6 Tips on Opening a Local Company in Singapore

Singapore is an ideal location for international businesses to host their headquarters. Singapore is known for its strong trade and investment and most competitive among Asian country and the world’s easiest place to do business.

By locating your HQ here, your company benefits from:

  • Singapore’s network of over 50 comprehensive Double Taxation Avoidance Agreements.

  • Singapore’s many free trade agreements and the Investment Guarantee Agreements.

  • Protection for your ideas and innovations thanks to Singapore's strict enforcement of its strong intellectual property laws.

Here are 6 tips for you who are ready to set up your Company in Singapore

1. Choose an Appropriate Company Name. Every business requires a name to differentiate itself so that it is easy for others to find the business. The first step is to choose a suitable name and submit a name application for approval. Once the name application is approved, you can proceed to incorporate the company.

2. Determine the company type. There are 2 types of company either Private Company or Public Company. Generally, majority of business owners would form a Private Limited Company when your business nature is in Trading, Service, Manufacturing, Construction, F&B and retail. However, if your business nature is in raising capital by offering shares or debentures to the public, non profit organisations, has members instead of shareholders then it would classify as Public Limited Company.

3. Appoint of Company Officers. The next step is to appoint Director, Corporate Secretary and Other Key Personnel. Every Company must have at least 1 director who is locally residing in Singapore. A Company must appoint a secretary within 6 months from its incorporation date who is locally residing in Singapore. A company can choose to appoint a CEO or Managing Director however it is not mandatory. Every company must appoint an auditor within 3 months of incorporation, unless it is exempted from audit requirements under relevant sections of the Companies Act. Foreigners who wish to incorporate a Local Company in Singapore must engage the services of a registered filing agent and engage a nominee director who meets the requirement to represent as a Local Director.

4. Shares and shareholders. Every company must have at least one shareholder and you will need to provide the personal identification details of the shareholder. You must too indicate the amount of issued capital and the minimum issued capital must be at least $1. However, there is no minimum paid up capital required.

5. Registered office address. The Company must provide a registered office address during the incorporation of Local Company. A registered office address could be a Virtual Office or operational office where it is accessible to the public during normal office hours but need not be where the company conducts its activities.

6. Deciding on a Financial Year End. Once the company has been incorporated, you may decide on the first Financial Year End (FYE) of your new Company. The FYE which usually cover 12 months period will determine when your corporate filings and taxes are due. Common choices by companies will include 31 March, 30 June 30 September or 31 December. Example, if you incorporate your company on 1 September 2020 by default your first FYE falls on 31 August 2021, however you decide the first FYE to be 31 December 2021 which can be done as this is the first Financial Year End for your Company.

Talk to your trusted Filing Agent today before you start to incorporate your first Local Company in Singapore.

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