What are the important things related to the formation of a company in Singapore

Posted by Smith on January 4th, 2021

We generally get to see many interested local and foreign entrepreneurs expressing their wish to form a company in Singapore. This is probably because of the fact that the companies of Singapore enjoy certain advantages. It includes tax advantages, limited liability to all the business-related debts, and bankruptcy protection. While the incorporation of a company comes with a countless list of advantages, it even has a compliance package to prevent any sort of financial abuses by unscrupulous dealings, tax evasions, or management ill practices.

Important things that are related to the incorporation of Singapore Company includes,

• Company name: All the company needs the first approval by the Accounting and Corporate Regulatory Authority (ACRA) for the business name. In order to avoid rejection, make sure it is not identical with any existing business or violating trademarks of other organizations.
• Shareholders: Private limited companies are allowed to have a maximum of 50shareholders who are strictly prohibited from trading in the stock market. Whereas the public limited companies are allowed to have more than 50 shareholders as they can rely on the public to infuse money for the expansion of a business.
• Resident directors: The Singapore Companies Act states that the company must have one resident director at least on the board. Moreover, the resident direction must own a registered residential address within the country.
• Company secretary:  A secretary needs to be appointed within the six months of the date of incorporation. Corporate Secretary for Singapore Companies need to be a resident of Singapore fulfilling all the required qualifications for the positions.
• Share capital: The minimum paid-up capital required for the natural citizen or Employment pass holder is S. However, if the company is owned by the EntrePass holder the amount specified is S000.
• Memorandum of Association (MOA) and Articles of Association (AOA): MOA & AOA are the important documents of the company which specify all the commercial activities along with the rules and policies governing the management of a company.

So, if you have any plans to set up a company in Singapore, do consider all the important requirements for the formation of a company.