Company Formation Procedure(types of companies in singapore )
A company registration procedure is the process of registering a corporation. This procedure is simple and does not require a significant amount of time. However, in order for the process to be flawless, all formalities under the Company registration procedure must be followed. An entrepreneur must first decide on the type of company that will be formed. Based on this, the entrepreneur must proceed with the Company registration. The firm registration procedure provides several benefits. Under the company registration procedure, foreign corporations may also establish branch offices in Singapore.types of companies in singapore )
Company Types in Singapore(types of companies in singapore )
Companies in Singapore are classified as follows:
Limited Liability Company(types of companies in singapore )
A private limited company is a business that is limited by shares. Besides, a private limited company’s shares are not traded on a public stock exchange. Moreover, a private business can have a maximum of 50 shareholders. Subsequently, a private firm is exempt from some taxes. A private corporation, on the other hand, can be turned into a public firm. A certain number of directors and shareholders are necessary to register as a private limited company. A corporate entity can be a shareholder in a private limited corporation as well.
Private Exempt Company(types of companies in singapore )
Exempted Private Company (EPC) is a private company that is also exempt. An EPC, on the other hand, can only have a maximum of 20 shareholders. A corporate entity cannot be regarded an EPC’s shareholder. As a result, only individuals are considered to be members of an EPC. An EPC is someone who is a minister.
A public limited company is an entity whose shares are listed on the Singapore Stock Exchange. There are more than 50 shareholders in a public limited company. This is the bare minimum of shareholders in a public limited business. The public limited corporation can raise money by issuing shares and debentures. A public limited company must prepare a prospectus before offering shares to the public, according to the Monetary Authority of Singapore (MAS). This is in accordance with the MAS and the ACRA.
Limited by Guarantee Public Company(types of companies in singapore )
This type of company is similar to a non-profit corporation. Besides, this type of company is typically formed by its members to carry out non-profit operations. Moreover, this type of company does not have shareholders. This organisation, on the other hand, has a set number of members.
What Are the Benefits of Registering?(types of companies in singapore )
There are numerous advantages to registering a business:
Improved Reputation
When an entity registers as a corporation with the ACRA, it gains the advantage of reputation. A corporation that follows land regulations will have more goodwill in the eyes of investors.
Protection
Companies that are registered follow the rules. As a result, they are automatically protected by intellectual property regulations. The Company’s reputation and goodwill are protected under intellectual property regulations. The Company may also sue other businesses for infringement.
Limitation of Liability
The liability of the shareholders and directors is limited to the number of shares they own. This means that the members’ liability is limited. In this case, creditors will not pursue the members’ personal assets.
Permanent Succession
A company that is registered under the Singapore Companies Act has perpetual succession. This means that the company can function without the monitoring and control of its directors and stockholders. The Company can survive even if there are no directors or stockholders. The Company has the ability to enter into contracts and even purchase property. The property, however, can only be purchased through the Company’s gents. The directors act as the Company’s agents.
Who governs the company registration process in Singapore?
The Accounting and Corporate Regulatory Entity is Singapore’s primary regulatory authority for company registration (ACRA). The company registration procedure is governed by Chapter 50 of the Singapore Companies Act. The ACRA serves as a registrar for the Singapore business registration process. A prospectus is required when a public corporation wants to sell shares to the general public. The prospectus must adhere to the MAS’s format requirements.
Criteria for Eligibility for the Company Registration Procedure
The following are required for the company registration procedure:
Name of the Company
The name of the company must be distinct and distinct from the names of other companies. To improve the Company’s reputation, the name must be unique from others. The name of the company must comply with ACRA standards. The Company’s name must be filed using ACRA’s computerised site. BizFile+ is the name of this portal.
Director
A locally incorporated company in Singapore must have at least one director. The Company’s director must meet the following requirements:
- The director must be mentally sound.
- The director must be at least 18 years old.
- The director must be a Singaporean or a Singaporean permanent resident.
- The director must likewise be a bearer of an employment pass. The director may request permission from the Ministry of Manpower for special purposes.
Under current law, the director cannot be disqualified. Aside from that, the director cannot be insolvent.
Corporate Secretary
Within six months of incorporation, the company must appoint a company secretary. The corporate secretary must be a Singaporean. This position may not be vacant for more than six months. The Company’s director cannot be nominated as a business secretary during the company registration procedure in order to ensure sustainable governance.
A company can hire key management leaders such as the CEO and the Managing Director to oversee the affairs of the company.
Auditor
Within three months of registration, the Company must appoint an auditor. Companies that are excluded from audit are not needed to meet this condition.
International Investor
If a foreign investor wishes to register a local business, he or she must choose a corporate agent to handle the company registration process. A corporate agent could be a lawyer, a public accountant, or a consultant. A local business registration application in Singapore can be completed online. To carry out the business, the foreign company must employ a local director.
A corporation must appoint at least one shareholder. The Company must include personal information and a residence address when submitting the application for the shareholder’s appointment.
Capital raised
The Company’s minimum paid-up capital must be SGD 1. This is the bare minimum of capital.
Registered Address
The means of correspondence for business dealings must be the office address. This data must be sent to the ACRA. The registered office should be the location where all of the Company’s records are kept.
The Company’s Structure
The Company’s Constitution is a legal document that states the boundaries of the Company’s power. The objects of the corporation specify what type of business the company can conduct.
Company Formation Procedure
The Company Registration Procedure in Singapore is a simple procedure. A company can be effortlessly registered with the ACRAA as long as the appropriate documents are presented. For company registration, the following steps must be taken:
Request for the Name
A firm must submit a name application. This application must be submitted electronically through the ACRA portal BizFile+. Certain criteria must be met before naming the company. The following are the criteria:
- The name must be distinct from that of other businesses.
- The name must not be objectionable to any Singapore Government Authority.
- The name must not infringe on another company’s intellectual property rights.
Meeting Eligibility Requirements
After the Company has filed the name in accordance with the preceding regulations, the Company must also meet the eligibility conditions. The minimum authorised representation must be met if a company establishes a foreign branch in Singapore.
Fee for Registration
The fee for online registration of a Singaporean company is SGD 300. (Singapore Dollars). The name application price for a foreign company is SGD 15, and the registration fee is SGD 300.
Source: types of companies in singapore , nature of business list singapore
