Singapore has a stable political environment and a sound financial system that provides one of the best platforms for businesses to thrive. The government offers attractive corporate tax, top infrastructure and the availability of human capital.
Register Company in Singapore
When you want to open new company in Singapore, you will need to submit some documents to the Accounting and Corporate Regulatory Authority (ACRA). The company needs to be registered and incorporated before it can start operating. This is done by submitting an online application form through BizFile, an ACRA’s online filing and information retrieval system. The application for approval and reservation of the company name is also submitted online through BizFile.
The notification for the company name rejection or approval will be sent in one hour unless the proposed name requires the evaluation and approval of other government authorities. In such a case, the name approval may take several days. An approved name is reserved for 60 days from the date of application, but you can file for extension request before the expiry day extending the period for another 60 days.
When you want to register company in Singapore, the incorporation can be done by logging into BizFile using your SingPass and your Identification Number to submit the online transaction. ACRA will forward an official electronic mail notification to you or the professional firm that you engaged for the purpose of registration, approving the incorporation of your company.
The email will include the company registration number and is used as the valid certificate of incorporation in Singapore. After you register company Singapore, you may begin doing business. However, this is only possible if the firm does not need additional approval or license from other government agencies to do business.
Registration for Goods and Service Tax (GST)
Bear in mind that after you open new company in Singapore, check if it’s predicted annual income is more than SGD 1 million. If it exceeds, your firm must register for goods and service tax (GST) also known as Value Added Tax (VAT) or Sales Tax in various countries. If your firm is GST-registered, you will have to charge a special tax (currently 7%) to your customers on the goods and services provided and then dispatch this amount to tax administrators. If your company annual turnover is not more than S$1 million, you do not need GST registration.
Section 19(1) of the Companies Act mandates all newly registered company to submit their proposed company constitution to the Registrar. For a private company limited by shares, Section 18 of the Companies Act demands that the company constitution restricts the right to transfer its shares, and limits the membership to a maximum of 50 people.
It is also important to familiarize yourself with the Work Injury Compensation Act (WICA) that is under Section 23(1) Chapter 354 of Singapore laws. It demands that every employer must insure and maintain insurance under one or more approved policies with an insurance company against all liabilities that the company may incur under the Act with regard to employees of his/her company unless the Ministry of Manpower waives that insurance.