How to start a new company incorporation in Singapore?
- Consider the effects of the transition
- Choose a business structure
- Select a company name
- Know the requirements
- Prepare for potential costs
Overview
- Singapre’s growing economy attracts many businesses, but establishing a presence can be overwhelming.
- This article guides readers through the initial steps for new company incorporation in Singapore.
Singapore has a vibrant business landscape that offers many advantages for aspiring entrepreneurs. In 2023, business formation across different industries reached over 70,000 new legal entities. The professional services and whole trade industries significantly contributed to this number.
With a growing and generous economy, many businesses want to establish themselves in the country. However, it can be an overwhelming venture. In this article, we will help you get started. We’ll dive into the first key steps for your new company incorporation in Singapore. Let’s navigate the complex environment to establish your brand right.
Consider the Effects of the Transition
Company formation has many advantages for owners and businesses alike, but it does come with many factors to consider. The process is taxing, requiring various legal requirements. Meticulousness is in this journey. However, being sharp has an accompanying workload and pressure.
Assessing the effects of the project is needed. This will help you make informed decisions on legal corporate separations. One of the factors to emphasise in your review is the impact on daily operations.
This transition takes time and effort for your business. It means that it can influence the quality of your products and services. Analysing if you can sustain your standards with added workload is important.
Choose a Business Structure
A business structure refers to how your enterprise operates. It is a form of hierarchy that dictates the process of your company. An understanding of organisational structure is an advantage when it comes to this step.
There are many options to choose from. In Singapore, forming a business can have one of the following structures:
- S Corporation. The stakeholders control all the financial decisions of the company.
- C Corporation. It has a double taxation situation. This is where the corporation and the stakeholders have separate taxing profits.
- Non-profit corporations. A board of directors, donors, and financial sponsors are required. They are also exempted from tax.
- Limited Liability Company. This structure prioritises the separation of the business and owner. It has a simpler financial or taxing structure.
Each of the structures has its own advantage. Rigorous research is needed to help you choose the ideal one for your long-term operations.
Select a Company Name
Another important detail for new company incorporation in Singapore is the business name. It is not only a collective label on the products and services you offer. The name is an essential part of your brand identity. Moreover, it is necessary to have a different name for your business for legal separation.
When choosing this detail, it must be unique and memorable. However, for legal reasons, it should also be an unregistered name. This means that it is not used by another existing enterprise.
You can find the availability on the name online. Singapore’s Accounting and Corporate Regulatory Authority or ACRA can help you verify if the name’s taken.
Know the Necessary Requirements
Documentation is the foundation of this process. Without it, the progression of the transition will fail or stop. Understanding the basic files is essential. This will help you gain what type of meticulous procedures to obtain the requirements.
Some basic documentation for business formation is the following:
- Minimum number of directors and shareholders. In Singapore, there is a minimum of one director and one shareholder.
- Secured Capital. The lowest capital is SGD 1. But this depends on the size and nature of the business.
- Registered office. The headquarters of your enterprise is needed. This is for receiving official communication.
These are the necessary details needed to submit. But they are only the minimum requirements. There are more documents to prepare and gather such as Articles of Incorporation.
Prepare for Potential Costs
Company establishment is a business transaction. In every transaction, costs are expected. This is one of the most crucial details to prepare for. The process involves various fees and potential ongoing expenses. This may take a toll on your budget for operations if you are unprepared.
Understanding these costs helps navigate the transition more easily. Through proper financial planning in the beginning, you can manage the costs that will arise during incorporation. This will help you make informed decisions that will not hinder daily operational costs, maintaining the quality procedures of your products and services.
Key Takeaway
This article tackled how to begin the process of a new company incorporation in Singapore. It lays a comprehensive insight into this venture. From careful consideration to preparing for additional operational costs, your company can equip itself for this transition.
Moreover, it is important to note that this is a heavy legal process. Expect a rigorous journey throughout business formation.
At Legatcy, this venture is made more convenient with a team of experts. We are one of the thousands of professional services established in Singapore. Our successful standing in this industry is a testament to meeting the meticulous standards of incorporation.
With the same determination and knowledge, our professionals can help you register your business with ease. Contact us today to learn more about our incorporation services.
