Foreigners registering a business in Singapore

Before registering your business with ACRA, you need to register your business name. As an employer, the broad considerations you would likely have to take into account are largely detailed in the Employment Act – the key legislation governing the employer-employee relationship. 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. If you intend to expand your business and would like to raise capital more easily in the future, you may wish to incorporate a Singapore company.

What Is a Corporate Secretary?

Alternatively, you would require Halal Certification should you wish to serve food to Muslim customers due to religiously prescribed requirements on the food they consume. For sole proprietorships or partnerships, you must notify ACRA that the business has ceased by filling in the “Cessation of Business” transaction online via BizFile+. Additionally, for a sole proprietorship or partnerships, the registration will expire what is a contra revenue account — definition and example once it has lapsed and was not renewed. However, the business name remains registered until the registration is cancelled. The first important choice to make would be to choose a business structure based on your considerations regarding capital, number of owners and risks.

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. However, certain types of inktothepeople business require approval from certain regulatory authorities before they can be registered.

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.

Starting an Exempt Private Company in Singapore: Benefits and Process

1. For instance, raising debt capital is relatively cheaper to obtain in comparison to share capital, as the latter requires listing costs and other expenses.
2. For more information on what businesses are eligible and the application requirements, you can visit MOM’s website here.
3. This would be a separate legal entity which would similarly allow you to limit your liabilities.
4. This is because although shareholders who provide capital are entitled to be paid dividends (i.e. a cut of the company’s profits), these dividends can only be paid out of the company’s profits.

That being said, should you wish to change your business’ FYE, the change must be filed with ACRA . Following which, the Inland Revenue Authority of Singapore (IRAS) will update its records based on the information filed with ACRA. The various differences between the business structures have been summarised by ACRA general ledger vs trial balance here. You may also refer to our other article detailing the differences between a sole proprietorship and a private limited company. MOM approves EntrePass for eligible foreign entrepreneurs starting businesses in Singapore with venture backing or innovative technologies. You can apply if you have started or plan to start a venture-backed or technologically innovative private limited company registered with ACRA.

Accounting and Corporate Regulatory Authority

Getting such approval may require an additional 14 working days to 2 months. If you are the only person running your business, you may wish to register as a sole proprietorship which has less administrative requirements. With its streamlined company registration process, coupled with its business-friendly environment, robust legal framework, and competitive corporate tax rates, Singapore continues to be a magnet for entrepreneurs worldwide.

The company should be less than 6 months old or can be registered after EntrePass approval. The application fee for sole proprietorships and partnerships, LP and LLP is $100. 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. A corporate secretary, also known as a company secretary, is required by the Companies Act of 1967. 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.

Singapore boasts one of the most attractive corporate tax rates at 17% on chargeable income. That being said, there are certain obligations that businesses must meet in order to operate in Singapore. A business’ FYE is determined entirely by the business itself based on what best suits its business operations.

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Cet article a été écrit par inedits