If you are a Dependant’s Pass (DP) holder who wishes to start a business in Singapore, you can apply for a Letter of Consent (LOC) from MOM to run your business, after registering the business with ACRA. More information on the eligibility and application requirements can be found here. Another important aspect to remember is that companies, unlike sole proprietors, will require ongoing compliance submissions. As mentioned above, taxation and GST applications must be made if your company meets the requirements. However, to continue operating as a company in Singapore, there are a few other aspects that need to be complied with. Where do you see yourself in the long term, especially in terms of your business?
- To file your registration under the BizFile+ portal, log in and use SingPass.
- The company should be less than 6 months old or can be registered after EntrePass approval.
- You should run an online Google search to find out if your proposed name is already being used by a currently registered business, or if it is extremely similar to the name of such a business.
- A business may either raise capital by issuing shares in return for shareholder capital, or by borrowing from creditors.
Creating and Registering Charges in Singapore: Guide for Companies
Learn about the different business structures and find out which one best suits your business. Upon successful registration of your business entity, you may need to apply for a licence or permit from other government agencies before commencing business. In Singapore, all businesses are generally required to register with the Accounting and Corporate Regulatory Authority (ACRA). Exemptions are granted for business owners who operate their businesses using their names as reflected in their NRICs. Separately, should you wish to hire foreign workers for your business, you must also obtain work permits for these employees. The permits required for the foreign workers you intend to hire are dependent on the skill level of your workers.
Step 3: Choose a business address
Section 171 requires all companies in Singapore to appoint a corporate secretary whose main duty is to ensure that the company complies with Singapore’s laws. When the company is incorporated, Company Secretary can be left blank initially. However, the Company Secretary must be appointed within 6 months of incorporation. Before registering your business with ACRA, you need to register your business name. Additionally, there are a few exemptions to the mandatory requirement of registration. For instance, you are not required to register your business if you intend to carry on your business as an individual under your full name, or if your income is tax-exempt under the First Schedule to the Income Tax Act.
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Alternatively, you may wish to delegate this task to a corporate secretarial firm to manage your business’ obligations in this aspect. Failure to file a business’ income tax returns on time is an offence, and retained earnings equation – explanation and example you will be liable to pay a 5% late payment fee or even face legal action should your business repeatedly fail to settle the payment. MOM approves EntrePass for eligible foreign entrepreneurs starting businesses in Singapore with venture backing or innovative technologies.
The partnership is also not a separate legal entity from the business owners. To sum it up, the actual registering of your business is merely the first step when starting a business in Singapore. Taxation obligations, financing options and hiring considerations must all be fulfilled before your business can run smoothly. If you’re running a small business, go for the simplest structure which is sole proprietorship. It will fit best for those who will run their business single handedly. However, you may not gain any liability protection, so if this matters to you then look into running a private limited company.
If you require expert advice synonyms assistance in registering your business, do check out our rates or get in touch. If you had chosen to register your business as a company, you must apply to ACRA to voluntarily wind up your company or to strike it off the register. Upon registering your business, you will be issued a business profile containing details of your business as well as a Unique Entity Number (UEN) (i.e. your business’ identification number). Apart from complying with the legal regulations, registering your business is also beneficial. Remember that starting a business can be overwhelming, so be sure to have all the right equipment handy to deliver your service or products efficiently. At the same time, you might also need software to help you plan and run business operations smoothly.
A Limited Liability Partnership (LLP) serves as a chanel history business structure in Singapore, providing owners with the flexibility of a partnership combined with a separate legal identity similar to a private limited company. This allows businesses to operate with limited liability for the partners. While a Singapore Private company can have two or more partners, it is limited by a maximum of 50 shareholders. A Public Company Limited can have more than the allowed amount of shareholders for a Private company and can raise capital from the public. A key element of this business structure is its legal identity, which is separate from its owners.
Zachary Paul
Zachary Paul is an independent investigative journalist living in New York City. |