5 Points to Consider Before Business Incorporation in Singapore (With a Bonus Tip)

Unless you are a Politically Exposed Person or PEP, or on a blacklist due to certain reasons, it is quite easy for almost any individual to set up a business in Singapore.

You might choose to work with a Registered Filing Agent to incorporate your company in Singapore where the RFA will be accountable for authenticating the credentials and organizing due diligence on the shareholders and company directors.

The RFA will also be responsible for filing to the Accounting and Corporate Regulatory Authority or ACRA on your behalf.

Select a Suitable Company Name

Selecting a company name is frequently one of the most arduous tasks when you are setting up company in Singapore.

You might be thinking that the company name must reflect the brand value and goods or service that you are providing, however, a company name can be dissimilar from your business name.

Private Limited Frameworks Are the Most Common

Singapore allows several different types of entity frameworks for an individual to manage the business.

The most usual and highly suggested framework is the simple private limited company or Private Limited or Pvt Ltd).

The word “Limited” signifies that you will have limited liability protection, meaning that your assets cannot be annexed to pay off the company’s dues unless you have given a personal guarantee to investors.

Resident Director

A director has a significant role in the company as he/she is accountable for maintaining the affairs of the company.

The Companies Act states that a company must have at least 1 resident director who is a citizen or PR in Singapore.

An individual will be considered a resident if his/her permanent place of residence is within the boundaries of Singapore.

Opening a Bank Account

One of the mandatory tasks following incorporation is to open a corporate bank account and instantly start operations.

There are several factors to think of before deciding to choose a bank to work with.

You should also plan for the minimum balance necessities, bank account maintenance, and transfer charges accordingly.

Company Secretary Requirement

Companies must hire a Company Secretary. A Company Secretary should be a qualified individual under the Companies Act whose role is to help the company directors in ensuring that the companies maintain proper records and never crosses its regulatory obligations.

A company that fails to meet its obligations will be taken to answer to the ACRA.

Drawbacks of DIY payroll management [Bonus Tips]

Most small business owners in Singapore don’t know that payroll management is much more than just multiplying hours worked according to the hourly rate each pay period.

Payroll is also about maintaining compliance with federal and state taxes plus local tax laws and guidelines in certain scenarios.

If you don’t hire professional payroll management services, it might save you some money at the start, but will take out a huge chunk even if you misplace or forget to put a numeral.