Company incorporation faq
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The document provides a comprehensive FAQ about the company incorporation process in Singapore through Bestar Services Pte. Ltd. It outlines key requirements, necessary documents, and answers common questions regarding legal presence, capital, and compliance. Additionally, it discusses various grants available for small and medium-sized enterprises to aid their growth.
Company incorporation faq
- 2. • These are the list of the questions most frequently asked by the customers about the process of opening a company in Singapore. • If you can’t find an answer to your question here, please call us on +65 62994730 or email us at [email protected] and will revert within 24 hours. COMPANY INCORPORATION FAQ
- 3. The key requirements for setting up a company in Singapore are: • At least one shareholder (local resident or a foreign individual or even a company) • At least one director, who is a resident of Singapore, and over the age of 18. • At least one qualified Company Secretary, who is also a resident of Singapore. • The Requirement of a physical, legal address in Singapore for the company • Minimum paid-up capital of at least S$ 1. 1) What are the requirements for setting up a company in Singapore?
- 4. • With the help of specialist Company registration and incorporation like us – Bestar – you can have your company incorporated within 1 day. 2) How long does it take to incorporate my company?
- 5. Subsidiary company incorporation requires the following documents to be presented – • Details of the subsidiary company proposed to be incorporated. The name, share capital, key personnel, shareholders, etc. • A copy of your passport and a Singapore ID of every key personnel and individual shareholder. • A certificate of incorporation of the main, parent company along with a document producing the key personnel of the Head Company and address. 3) What documents are necessary for the incorporation of a subsidiary company in Singapore?
- 6. 4) Do I have to be present to carry out legal requirements while company incorporation? • No. • The procedure can be completed without your presence here. • We can help you carry out the procedure by sending you all the documents via courier, which you can send us back.
- 7. 5) Do I require prior approvals? • Yes, • A prior approval with ACRA will be necessary to approve the name of your company before you begin with your incorporation process.
- 8. 6) Why should I opt for a company and not other forms of business incorporation in Singapore? • A company, incorporated as a Pte. Ltd. • The Company is considered as the most powerful business entity in Singapore. • Such an entity has a prime legal status, which is separate from that of all its owners, directors, and shareholders.
- 9. 7) I do not meet the local/resident director criterion. Can I still incorporate my company in Singapore? There are other options to consider • You could relocate to Singapore via an Entrepreneur Pass to act as director later • You could take the help of someone you know in Singapore, who will be able to act as a resident director to your company • You can also seek out the help of a professional services company, and hire a nominee director to fulfill the clause.
- 10. 8) Can a Director and the Company Secretary be the same people? • Yes, • They can be the same person, provided they are qualified to hold the two positions.
- 11. 9) What do you mean by the constitution or Memorandum of association of the company? • The Constitution of the company is a legal document that is registered with the ACRA during incorporation. • The Constitution can be amended as and when required. If the company is incorporated before the date of commencement of Companies Act, 2014 (Amendment), the MOA or the Memorandum of Association of the company is required to be submitted.
- 12. 9) What do you mean by the constitution or Memorandum of association of the company? • The Constitution/MOA of the company must contain the following necessary pieces of information • The name of the company • The capital structure of the company • The liability of all the members • Details of the subscribers along with the number of shares subscribed by them • The governing rules for the internal management of the company
- 13. 10) When is the issued share capital supposed to be paid? • The issued share capital is required to be paid immediately during the incorporation stage in the Corporate Bank Account.
- 14. 11) If I have a large paid-up capital, will I be liable? • Paid-up capital is nothing but the amount which is paid by the shareholders towards the company of which they are trying to purchase the shares of. • The funds thus generated are supposed to be used to meeting the expenses of the company, including paying off any debts incurred by the company. • If the paid-up share capital amount is fully paid for by the individual shareholders, there is no need for personal liability. • However, if any amount is not yet fully paid-up, the creditors can duly demand the liability and shortfalls to be paid personally by the shareholders.
- 15. 12) How soon can I start using the money generated from shareholders, as the paid-up capital towards the growth of my company? • There is no requirement of waiting for a certain period before you can begin using the paid-up capital for your company. • You can start using the amount received almost immediately.
- 16. 13) I am a foreign individual. Can I own 100 shares in the company? • Yes. • In fact, both a foreign individual and a foreign company can own 100 of the shares of a company incorporated in Singapore.
- 17. 14) What business activities are allowed by the Government of Singapore? • There are no particular restrictions over the kind of business you want to pursue in Singapore. • However, certain businesses like travel agency, financial services agency, school, recruitment agencies, etc. are some of the businesses that require a pre-approved license to be run.
- 18. 15) Are there any cappings on the movement of funds between my home country and Singapore? • No. • There are no restrictions on moving the funds from and to Singapore, as far as legal business purposes and activities are concerned.
- 19. 16) Will the branch office I opened in Singapore be qualified under a start-up exemption? • No. • Any branch office opened in Singapore is not qualified for a start-up exemption. • However, the branch office can be considered for a tax exemption over its chargeable income.
- 20. 17) What is the current corporate tax rate in Singapore? • Corporate Tax currently stands at Exemptions, both full and partial, can be provided over taxable income of up to S$ 300,000.
- 21. 18) Can I opt for a corporate bank account in Singapore? • Yes. • Once the company incorporation procedure is completed, you can open a corporate bank account.
- 22. 19) Will my presence be required to open a corporate bank account? • This will completely depend on the type of bank you choose. • Most corporate bank accounts can be easily opened without the person being physically present, however, some banks do require your physical presence as well.
- 23. 20) Will I be required to pay taxes for hiring and staffing human resources for my company in Singapore? • As far as local Singapore citizen employees are concerned, you will be required to contribute to their Central Provident Fund at a specific rate, depending on their salary percentage. • In the case of foreign employees, The Central Provident Fund is not necessary. • Singapore is known for the independence of human resources. Here the workforce is responsible for its tax payments and as a company you are not necessarily required to withhold any percentage of their income as income tax.
- 24. 21) What all compliances need to be fulfilled? • Every compliance that is necessary will be fulfilled by the Company Secretary you hire, including AGM and return filing.
- 25. 22) How long do I have to maintain my company’s accounting records? • Any company registered as per the Singapore Company Law is required to maintain their accounting records to a minimum period of five years. • Along with accounting records, you will also be required to maintain every piece of document that supports your business operations and transactions.
- 26. 23) What kind of grants can my company receive? • Singapore Government has been placing immense attention on the development of Small and Medium-scale enterprises in the country in order to boost the economy and to achieve productivity. The Government thus provides corporates with grants to push them to excellence. • These grants have the capacity to allow small and medium scale enterprises to get all kinds of assistance when it comes to business growth. • Grants and schemes like the Productivity and Innovation Credit Scheme, Capability Voucher Scheme, and iSPRINT are known to help Small and medium scale enterprises with all the help they require to make it big in Singapore.
- 27. More questions? • Allow the experts at Bestar help you. • Reach out to us, we would be happy to serve you.
- 28. Work With Us Website Email Contact Number Follow us