- January 1, 2018
- Posted by: UpVue
- Category: Business Advices
Incorporation Of Company In Singapore: Advantages
Singapore is considered to be one of the most start-up friendly countries for companies in the world. In fact, the Singapore company incorporation system is extremely advantageous that millions of companies-whether local or foreign- are being formed each year. Being popular among investors, the country has grown to be a major financial centre in Asia.
Singapore is one of the most profitable companies to set up a business in. It is said to have the least burdensome taxes in the world. Depending on the type of incorporation, companies in Singapore benefit from tax exemptions, limited liabilities, and other tax incentives. These companies enjoy the numerous benefits of friendly economic policies, diverse cultural relations, and stable political conditions.
Company formation in Singapore is regulated by the Singapore Companies Act. This law requires all companies to be registered and to comply with company formation requirements. Limited liability remains to be the most popular and advantageous type of incorporation today.
Limited liability simply means that company owners’ personal assets are protected since liabilities are limited to the assets of the company alone. There are different forms of company formation with limited liability in Singapore. These include the private limited liability company (Pte.), the public limited company (Lte.), sole proprietorship, and partnership.
Incorporation Of Company In Singapore: Basic Start-Up Requirements
Singapore company incorporation does not require a lot. Basically, a company must have a company name, a shareholder, a director, a local company secretary, a registered local address, and $1 share capital in order to be formed. The company name has to be approved by the Accounting and Corporate Regulatory Authority (ACRA). It must not be deemed indecent and must not be identical to another existing business name to avoid trademark violations.
Under the Singapore Companies Act, anyone who is at least 18 years old can become a resident director of a company. It doesn’t matter if he or she is a foreigner, as long as the required employment pass and local commercial or residential office address are provided. Furthermore, Section 171 of the Singapore Companies Act states that a company secretary must be appointed within six months of incorporation. The company secretary is responsible for making sure that all required minutes and documents are completed and filed to the ACRA.