Ambition is made to feel realistic in Singapore. And, truly, that is not much of a stretch. Taxes that make you look over your shoulder, a legal framework that is made of transparency and a business regulation environment that favors business owners like adults. No wonder, founders all over the world continue to select this small island as their Asian base. That not with standing, business-friendly does not imply figure-it-out-as-you-go. Check this out!
Start With Structure
The Private Limited Company -Pte. Ltd.—-where the great majority have their land, and with reason. It puts a clear line between your personal and business liabilities. In case business goes wrong, your personal assets will remain unaffected. The format is immediately recognised by banks and investors. Sole proprietorship may seem easier on the surface but as soon as a conflict sets in, you will be gambling away everything that you possess. It is not something that most founders with any experience consider.
The Director Requirement
Foreign founders are likely to bump into this wall at an early stage: Singapore law demands that one of the directors must be ordinarily resident in the country – a citizen, a permanent resident or a holder of an Employment Pass. In case none of the founders are qualified, a nominee director becomes the director. It is a valid, regular practice, that corporate services firms deal with regularly. But do not take it lightly. A nominee director is not a name on a form, but has actual legal liability in your company.
Registration Faster than You Think.
Any company registering is done via BizFile+ which is under the management of ACRA – Accounting and Corporate Regulatory Authority. Get your paperwork and it generally takes one to three working days to get approvals. Singapore has a silent secret that speed is one of their secrets – only when you have witnessed other nations drag the same exercise over months, do you realize it.
The rules are simple enough: to be an ACRA-approved company name, a physical address in Singapore, not a P.O. box; at least one shareholder; a company secretary must be appointed immediately after incorporation; a minimum paid-up capital of S $1. Not a misprint.
Post-Incorporation Obligations Matter
Never forget about what follows. Bank accounts of corporations are heavily vetted by banks, thus giving more time and coming prepared. Projected increased revenue of over S1 million will lead to compulsory GST registration. There are annual requirements in both ACRA and IRAS and no one is lenient with regard to submission after the due date.
Training transforms the Singapore system to awe-inspiring, to impressively efficient. The regulations are simple to understand – abide by them and the procedure has become self-regulating.