If the business environment back home is suppressing your company’s success, the market share is reducing, or profits are on a steady decline, it is time to move on to the international market. Singapore is an excellent choice for your company because of its pro-business policies and straightforward tax regime. Opening a company in Singapore opens doors to endless opportunities, especially in giving your business access to a larger market.
One thing you need to appreciate about forming a company in Singapore is that registering is only the first step. The process of incorporation will not be complete without all the post-incorporation processes. Keep reading to learn more about the main things that you require to register a company and the post-incorporation procedures.
Why Open an Offshore Company in Singapore?
- Access to a larger market in Singapore, the Far East, and the entire globe.
- Enjoy better support from the Singapore administration for faster growth and success.
- Easy access to a large pool of qualified workforce.
- Enjoy lower taxes for your company operations.
- Better property rights protection.
The Main Requirements for Company Registration
To register a company in Singapore, you will require selecting the preferred business structure, name, and address. In addition, you will need:
- Company directors.
- Initial paid-up capital.
- A company secretary.
- Memorandum of understanding.
Post-Company Registration Requirements in Singapore
The process of company incorporation in Singapore is not considered done until all post-incorporation activities are complete. Let’s check at some of the processes and requirements for registration:
- Additional Business Licenses and Permits: Depending on the nature of business activities, you might require additional permits and licenses. Good examples of businesses that will require more permits include travel agencies, financial services companies, educational-based firms, cleaning companies, and restaurants.
- Goods and Services Registration: For companies that expect to hit over S$1 million, the Singapore administration requires them to register for Goods and Services Tax (GST), also known as value-added tax (VAT). This means that they are required to collect 7% of GST from clients and remit it to IRAS.
- Get a Company’s Seal/ Rubber Stamp: This is a very important requirement because it provides credibility to documents by the company. The stamp should have a name and the company’s registration number.
- Issue Share Certificates: Shareholders are very important because they provide the initial capital for the company’s operations. The company’s share certificates are issued by the company secretary to act as proof of ownership and show the distribution of shareholding.
- Hold Your First Board Meeting: Once the company is legally registered, shareholders must hold their first session, with the first agenda being to appoint directors. They have to pick at least one director to be in charge of the company’s activities. They are also required to make decisions on the employment of other key staff, including the company secretary and auditor.
Compliance Requirements for Companies Registered in Singapore
All companies registered in Singapore are required to fulfill additional annual requirements to operate legally in the country. Here are some of these requirements:
- Singapore annual company accounting: This includes maintaining annual books, including general ledgers, account receivables, and accounts payables.
- Hold Annual General Meeting: Every calendar year, Singapore companies are required to hold annual general meetings where the shareholders approve the financial statements.
- Annual Returns Filing: This is done one month after holding the annual general meeting of the company.
- File Tax Returns: Singapore requires all registered companies to file their tax compliance twice. By 30th November, you have to make paper filing and, by 15th December of every year, e-filing.
As you can see, company registration, commencing operations, and compliance require a good understanding of the Singapore business environment. It can be pretty challenging, especially for foreigners, but this should not make you give up expanding your business offshore. To get it right, you should work with an agency of experts. The experts will not only help with company registration in Singapore but also with all the compliance-related requirements.