8 Crucial Things To Look Out For Singapore Company Setup, covering names, directors, capital, compliance and more to help you establish your business smoothly.
Setting up a Singapore company requires attention to key rules such as choosing the right name, meeting director requirements, securing a registered address, and ensuring proper compliance. Understanding these essentials helps new businesses avoid delays, maintain legal accuracy, and start operations smoothly.
Things To Look Out For Singapore Company Setup
Establishing a company in Singapore is structured. But you should consider some specifics at the very beginning. Failure to consider major requirements can lead to delays or compliance problems in the future. Here are 8 considerations for setting up a company in Singapore.
Company name availability
You need to verify your name’s availability before incorporating your company. It should be:
- Original
- Not identical or closely related to existing businesses
- Not violate trademarks.
You may need further approval in case your name includes regulated words, e.g., finance or bank. Moreover, ensure that you check the availability of names at an earlier stage. This will prevent unnecessary delays.
Business activity classification
You will be required to specify your business core activities in Singapore Standard Industrial Classification (SSIC) codes. Selecting the right codes is important for company incorporation in Asia. It determines what your company can do legally.
It is advisable to avoid wrong or inappropriate classifications. They might cause compliance problems or licensing issues in the future.
Minimum paid-up capital
There is no high capital requirement in Singapore. One Singapore dollar is the minimum amount of paid-up capital required to incorporate your company. You must, however, consider a larger amount, particularly if you intend to open a corporate bank account or seek licenses.
Director requirements
One of the directors of your company must be a Singaporean resident. This may be a citizen, a long-term resident, or an approved work pass holder. You are also allowed to appoint foreign directors, but the local director requirement must be fulfilled. Directors should be 18 years old and not disqualified by the Singapore law.
Shareholder structure
The number of shareholders may be 1-50. They may be either individual or corporate. Singapore permits 100% foreign ownership. Therefore, you can own the company entirely even when you are not a resident. Shareholding proportions should also be clearly defined at the very beginning to prevent future conflicts.
Appointment of the company secretary
Within six months of incorporation, you will be obligated to hire a qualified company secretary. The secretary should be a resident of Singapore and have the required knowledge of corporate regulations in Singapore. The position is very important since the secretary will see to it that your company meets the filing and statutory requirements.
Registered office address
Your company shall have a registered office address in Singapore. It is in this address that official correspondence is dispatched and should be available within the normal business hours. A residential address can be applied in certain instances. However, you should abide by the local laws.
Continuing compliance requirements
The establishment of the company is not the end. You are required to submit annual returns, have good accounting books, and conduct annual general meetings unless you are excused. Even the inactive companies must comply with minimum standards.
Wrapping up
Note these key areas when establishing a company in Singapore. This will ensure that you do not make any mistakes or experience delays. With that, you lay a good basis for compliance and a well-structured business in Singapore.
FAQs
What to check before choosing a company name?
You must verify that your preferred name is unique and not trademarked. Singapore also restricts certain regulated words. Checking early helps prevent delays during incorporation.
How to pick the right SSIC business code?
Choose a code that accurately reflects your primary business activities. The SSIC classification determines licensing needs and compliance steps. Wrong codes can delay approvals or cause regulatory issues.
What is the minimum capital for Singapore firms?
Singapore requires only 1 SGD as minimum paid-up capital. However, certain licenses and banks may expect higher amounts. Consider your future needs before finalizing the capital structure.
Who qualifies as a local director in Singapore?
At least one director must be a Singapore resident. This can include a citizen, PR, or eligible work pass holder. Foreign directors are allowed, but the local requirement must always be met.
Why is a Singapore company secretary required?
Every company must appoint a qualified secretary within six months of incorporation. This person ensures accurate filings, statutory compliance, and proper recordkeeping. A knowledgeable secretary reduces risks of penalties or late filings.
