Introduction – Doing Business in Singapore

Singapore is considered to be a rich city state with a trade and open drive economy. Today, Singapore is considered to be a leading global business hub that is located at a strategic geographical location where the major west and east shipping routes meet. Singapore is also known to have a stable government, effective regulatory system and a strong rule of law. It is also considered to be a shipping, financial and trade hub for Asia pacific region and also a great launch pad for the continent.

Singapore managed to remain relatively stable during the 1997 financial crisis when most of its neighboring nations were sliding. The nation also managed to weather the financial crisis in 2008 and came out as one of the fastest world’s developing economies in 2010. This happened at a time when both the European and the US economies were struggling with the aftermath of the economic crisis. The country managed to see it off despite the fact that it had no natural resources and a smaller land area. Singapore’s economy is driven by financial services, world’s largest cargo seaport, tourism and exports in machinery and electronics.

There are times when a local or a foreigner might be interested in starting a business in Singapore. Below are some 5 important features during company creation in Singapore.

 

 Creating an LLC – Singapore

 

The locals and foreign investors usually have several choices whenever it comes to creation of a limited liability company (LLC) in Singapore. In fact, the most preferred company type is the LLC. In Singapore, they are also known as company limited by shares whereby the shareholders responsibilities are limited to the total amount they have invested in the company. In relation to the Singapore Company Act, the Limited Liability companies are considered to be legal entities that are separated from their members and the personal assets of the shareholders which are being protected from any business liability.

 

With the company act, a minimum share capital required for coming up with a Limited Liability Company in Singapore is established at 1SGD. Hence, the shareholders are always free to determine the total amount they require in order to be able to start their business. It is a requirement that any Singapore limited liability company should have a minimum of one shareholder and a maximum of 50 though their shares can never be traded on the stock exchange. The act allows both the natural individuals and the corporate organizations to get registered as LLC companies in Singapore. The LLC is known to be a perfect choice for foreign firms that are interested in opening their subsidiaries in Singapore.

 

Registration of Company Name

 

Singapore is known to be a very attractive market for foreign business investors. The registration of companies in Singapore is usually done by the Accounting and Corporate Regulatory Authority. The investors usually have the freedom of registering the following types of companies in Singapore:

 

  • Public and Private Limited Liability Companies
  • Sole Proprietorships
  • Partnerships Limited by Shares
  • Limited and General Partnerships
  • The Foreign companies can also decide to register representative offices, branch offices and subsidiaries in Singapore.

 

The process of registering a company in Singapore takes minimal time and is usually done electronically on an online ACRA platform. There are two major steps one will always encounter when registering a company in Singapore. The first is choosing the company name and submitting it for approval. The registration file is then submitted with the Company Register in Singapore immediately the name has been approved.

Some of the major information and documents that are always submitted with the Singapore Trade Register include:

 

  • The name of the company
  • Information on business activities to be done in Singapore
  • Registration address of the Singapore Company
  • Articles of Association of the company

 

Company Name Check – Singapore

 

The process of registration a company name in Singapore can be tedious especially if the names that are preferred by the owners have already been taken or are preserved. Problems are always there especially when the one applies for a business or company name that has already been established or taken. Some of the common problems you will always face are filing of law suits or complaints, delay in approval of your application and others regarding company registration. However, the approval of the application can be smooth when the company name is unique and the scope of the business is not an issue.

 

You can always check the availability of business names by searching ACRA online directory of businesses. You need to avoid identical business names or names that might be similar to well known brands such as “Temasek”. Names that might require authority approvals might take more processing time.

 

Call Answering Service

 

Most business investors have call answering service in Singapore in order to be able to benefit from the competitive services at lower expenses. There are experienced consultants in company formation in Singapore who are always ready to help you set up a call answering service.  One of the top benefits associated with opening a call answering service in Singapore is the minimum investment you will need. Today, investors can opt to hire personnel from professional services within the call answering service. They also have the freedom of selecting the business center they are interested to have their registered address without worrying about funds since they invest in a classic office space.

 

Accounting

 

The Accounting and the Corporate Regulatory Authority (ACRA) are part of the Ministry of Finance in the Singapore government. The  ACRA are equivalent to registrar of companies in European nations since they are a statutory board. The authority has a main role of maintaining records on Singapore companies and ensuring that accounts and annual declarations are done on a regular basis.

 

These accounting and corporate regulatory measures are to ensure there is a trustworthy environment in the Singapore companies. They also have an obligation of ensuring companies respect all the disclosure requirements that have been provided by the regulations with the respect to the statutory audits provided by the public accountants.