Singapore is one of the finest countries to develop based on its competitive growth regarding its successful economic status. The Lion City's thriving financial hub continues to grow over the years because of its popularity; it remains a melting pot of prestigious businesses, may it be domestic or international companies. Moreover, Singapore is also widely known as one of Asia's "rising tigers" due to its economic growth in businesses, such as agriculture, electronic manufacturing, and many more. Along with it is the country's booming and convenient corporate tax rates that numerous business holders follow through accordingly.
Indeed, it is the most recommended country to start a business in, especially for international companies planning to create a name in the said country. With Singapore's business-friendly atmosphere — and just like ants on a candy, Singapore continues to attract various clients for long-term investment in the country.
The question now is, how does one start a company formation in Singapore? What should one be aware of when it comes to the business industry of the Lion City? Below are some of the must-knows one should keep in mind when it comes to Singapore company formation.
Essential Stages for Company Formation in Singapore
As mentioned above, incorporating a Singapore company is an excellent idea as it is considered one of the top locations for long-term business investments in the Asia-Pacific region. That is why it is important to know the required steps for company formation in the said country.
1. Having the company name approved is the first step
All business companies in Singapore must be registered and approved by the Accounting and Corporate Regulatory Authority (ACRA), the statutory board of the Ministry of Finance of the Singapore Government.
ACRA oversees the regulation of all local business entities, corporate providers, and public accountants nationwide, so before you can start your business, you should register on their online website given that all the terms and guidelines have been read upon registration, such as:
- Not having a name that's identical to any existing business in the country;
- No trademark infringement; and
- Must not be vulgar
Once the company name is approved, a local company reserves the name for up to 120 business days.
2. Preparation of the company's registered documents
After getting the first step done, The Accounting and Corporate Regulatory Authority will immediately notify business owners of the documented requirements that should be present for the registration. These documents are namely:
- Company Constitution;
- Signed Consent to Act as Director and Company Secretary; and
- Identification and residential address information of each officer of the company
It is also essential for individuals to keep in mind that all requirements above should be in English. Furthermore, the exact list of requirements may vary from Corporate Service Provider to Corporate Service Provider depending on the internal procedures.
3. Choose the right agency for a smoother company formation process
After everything is settled, a company can be officially approved and registered with ACRA. The online registration may take more or less than an hour; however, in other cases, the registration is referred to another government agency, thus taking a few more weeks of processing.
