If you want to become a private limited corporation, you would be able to provide a highly dynamic and scalable legal system for the company formation process in Singapore. You should not need to update because it is the best alternative available. The ACRA’s company registration process in Singapore is simple and hassle-free.
What is a Singapore private limited company? What is a Pte Ltd?
The Singaporean government has a variety of corporate or legal arrangements when you start a business in Singapore. A private limited business, on the other hand, is the best choice.
Singapore Pte Ltd’s benefits include:
- Pte Ltd is a private limited by-shares entity type. Its shares are not traded on a stock exchange and are owned and sold individually.
- The main advantage of Pte Ltd is that it restricts its shareholders’ liabilities to the money invested in its shares.
- It bears the burden of its obligations and losses. Its reserves are used to cover these expenses.
- Private investments of shareholders are not intended to fund the company’s obligations and are thus not at risk.
- It is a legal body with its own name distinct from its members (shareholders)
- For the chargeable revenue, it pays corporate income tax.
- It has a good reputation and can easily raise funds for expansion.
Important Requirements for becoming a private limited company
- Name of the business that has been approved for the private limited company. Approval is done by ACRA.
- A minimum of S$1,000 in paid-up capital is required, with a maximum of 50 shareholders.
- A minimum of one local or resident controller and a minimum of one business secretary.
- A recorded physical address in the area.
Documents for a Singapore company registration
Name of the organisation
When it comes to naming your business, you must be cautious. ACRA, Singapore’s Company Registrar, rejects names that are equivalent or similar to those of registered companies.
Building a brand needs a memorable business name. It should also explicitly state what your main business operation is.
Customers nowadays want you to have a company website. As a result, file the organisation and website under the same or equivalent names. It would make branding even easier for you.
In your application to incorporate when you start a business in Singapore, you must describe your business activities. To do so, use the required SSIC (Singapore Standard Industrial Classification Code).
Participation in the stock market
You need S$1 as minimum initial paid-up capital at the time of company formation. Singapore private limited company issues one or two shares to its original owners. Later on, it will collect more funds by selling additional bonds.
A properly drawn shareholders’ agreement specifies rights and responsibilities and relationships between shareholders. It would be useful in resolving future conflicts and differences.
To register a private limited company in Singapore, you’ll need at least one shareholder (corporate or individual). In such a business, both locals and foreigners are permitted to own 100% of the stock. A private limited partnership will have up to 50 members, according to the Companies Act.
If you are new in registering a private limited company in Singapore, you must appoint at least one local or resident director. Choose a Singapore citizen, a Permanent Resident, or an EntrePass holder with a local address who is normally resident in Singapore. A shareholder will also serve on the board of directors.
Address of the registered office
To become a Singapore corporation, you must have a registered physical office address on your application. It’s used for government correspondence. It can’t be a post office box.
With prior permission from the concerned authority, you can use a local residential address under the Home Office Scheme.
Particulars of the company secretary
Within six months of your company’s incorporation date, you must name a qualified company secretary in Singapore. Alternatively, you should hire one from a reputable licensed filing agent.
Memorandum & articles of association (M&AA)
This document’s memorandum section outlines the activities that your company formation experts plan to undertake. The internal management rules are defined in the Articles of Association section.
You can pay ACRA the necessary fees and receive a standard M&AA document for your use. Hiring a professional business secretary to prepare a personalised M&AA to address your unique criteria is a good idea.
Recruit an auditor
Unless it is exempted from audit requirements, every Singaporean company is required by law to hire an auditor within three months of its incorporation date. If a private sector may be categorised as a “Small Company” or belongs to a “Small Group,” it is excluded from this requirement. Previously, audit exemption was only available to private businesses with revenues of S$5 million or less.
Certificate of incorporation
After the company has been successfully registered, ACRA issues a Certificate of Incorporation. It sends out an email with a soft copy of the document attached. ACRA will provide you with a hard copy of a certificate provided you pay the required fees.
The Certificate of Incorporation is a crucial document since it is required for trade arrangements, commercial contracts, and dealings with other governments and their agencies. The certificate verifies your company’s legitimate presence and nature.
Business profile of the organisation
You can pay ACRA fees and get your company’s corporate profile. The paper includes the corporate name, its Unique Entity Number (UEN), the date of incorporation, the planned business operations, paid-up money, registered address in Singapore, and information about the company’s owners, such as members, executives, and the company secretary.
Certificates to share
The corporate secretary distributes equity certificates to the company’s owners. It lists the number of shares allotted to each of them and acts as evidence of their stock holding.
The board’s first resolution
The board of directors of a private limited corporation shall assemble and pass resolutions on its operation within a month of its incorporation. These may be registered in the same text or indifferent ones.
They name the normally resident director to the board by the resolution. They also vote to hire a secretary for the group.
Resolution for bank account opening
A Pte Ltd corporation is a corporate entity with its own name apart from that of its shareholders. It needs its own bank account to do business. As a result, the company’s board of directors must approve the establishment of a bank account under the company’s name. They also list the account’s signatories in it.
To sum it up
There is no single feature that separates this vibrant and dynamic country as a highly sought-after investment destination; all of the above factors contribute to Singapore’s continued appeal as a top business destination. So, if you’re looking for a new place to call home, we strongly suggest you give Singapore serious thought.
WLP Group is a corporate registration and incorporation company that enjoys assisting clients with compliance issues. We provide expert guidance and oversee administrative and legislative obligations to ensure that the corporation stays in compliance with Singapore law as it evolves and expands. To get dependable and high-quality treatment, schedule an appointment with us today.