How to Establish a Company in Singapore: A Detailed Guide

Singapore is renowned as an attractive destination for international investors due to its business-friendly environment, favorable tax system, and modern infrastructure. Consequently, setting up a company in Singapore is a top choice for many businesses looking to expand their market to the Asia region.

This article will provide a detailed guide on the procedures for establishing a company in Singapore, helping you step by step to complete the process quickly and efficiently.

1. Choosing the Type of Business Entity

The first step in the process of establishing a company is to choose the type of business entity that suits your needs and business goals. Some common types of business entities in Singapore include:

• Private Limited Company (PLC): This is the most common type of business entity in Singapore, suitable for small and medium-sized enterprises. PLCs have limited liability for shareholders, meaning their personal assets are protected from the company’s debts.
• Public Limited Company: This type of business entity is suitable for larger companies planning to raise capital from the public through the issuance of shares.
• Partnership: This type of business entity is formed by two or more individuals who contribute capital and jointly operate the company. Each partner has unlimited liability for the company’s debts.
• Sole Proprietorship: This is the simplest type of business entity, owned and operated by a single individual. The individual has full control over the company but also bears full legal responsibility for the company’s debts.

2. Naming Your Company

Your company name must meet the following requirements:

• Unique: The company name must be distinct from other registered company names in Singapore.
• Appropriate: The company name must not violate laws or public morals.
• Available: You can check the availability of the company name on the website of the Accounting and Corporate Regulatory Authority (ACRA).

3. Preparing Registration Documents

The registration documents for establishing a company in Singapore include:

• Registration Form: This form provides basic information about the company, including the company name, address, business activities, etc.
• Company Constitution: This document outlines the company’s objectives and business activities, as well as the rights and obligations of shareholders and directors.
• Information on Directors: Provide detailed information about the company directors, including name, address, nationality, etc.
• Information on Company Secretary: Provide detailed information about the company secretary, who is responsible for ensuring the company complies with legal requirements.
• Business Plan: The business plan outlines the company’s business strategy, including financial forecasts and marketing plans.

4. Submitting Registration Documents

You can submit the company registration documents online through the ACRA website or directly at the ACRA office.

5. Opening a Bank Account

After receiving the Certificate of Incorporation, you need to open a bank account for the company. Several banks in Singapore offer business bank account packages with attractive incentives.

6. Other Considerations

• It is advisable to consult a lawyer for legal advice regarding the establishment of a company in Singapore.
• You must comply with reporting requirements.

Compiled from ACRA and the Singapore Investment Portal