Singapore is famous for having some of the cleanest streets in the world and is notoriously renowned for being a country where it is illegal to spit your chewing gum in the street. But over the years, Singapore’s economy has become an eminent factor that sets the country apart from other countries. In fact, in 2021’s last quarter, Singapore’s Gross Domestic Product expanded by 2.6%, propelling growth for the entire year to 7.2%, making it the fastest growth rebound in over a decade, according to Bloomberg. According to the World Bank, the country’s highly developed free-market economy positions it as the second-best country in the world for ease of business.
Singapore’s strategic location in the heart of Southeast Asia and pro-business environment makes it an attractive destination for global organizations looking to expand into the Southeast Asian market. However, incorporating a company in Singapore can be challenging and time-consuming. This article provides the much-needed guide and processes for global organizations to set up a company in Singapore.
Requirements for incorporating a company in Singapore
Before a company is incorporated in Singapore, the organization must submit some documents to the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. These documents include:
- The company’s name
- The shareholders’ information
- Description of the organization
- The company’s registered office address
- The company’s mission statement and constitution
- The directors’ information
- The company’s share capital
- The company’s secretary's information
How to set up a company in Singapore
Incorporating or registering a company for business purposes in Singapore is solely approved by the ACRA. The ACRA incorporation of companies in Singapore involves the following steps:
- Getting the approval of the company’s name,
- Submission of the detailed company constitution and related documents, and
- Final registration with the ACRA.
Getting the approval of the company’s name
The first step in incorporating a company in Singapore is registering its name and getting it approved by the Accounting and Corporate Regulatory Authority (ACRA). Once a company sends a chosen name to the ACRA for approval, it usually takes a couple of hours to receive the approval or rejection notification. However, in cases where the company’s name has words like bank, finance, media, law, and so on, it will require the review and approval of external official authorities, thereby taking several weeks to get the approval or rejection notification.
When choosing a name for a company in Singapore, there are a few rules to follow:
- The selected company name can not be obscene or vulgar
- The company’s name cannot be identical to an existing company’s name
- There is no infringement of any existing trademarks
- The chosen name is already in use by another company.
Once the ACRA approves the company name, it will reserve the title for 60 days. The company can extend this period by sending a request before the period expires.
Submission of detailed company constitution and related documents
The submission of relevant documents is a crucial part of the ACRA company registration. After the company’s name approval, the organization must forward the company’s constitution to the ACRA. The company’s constitution is the legal document that outlines the company’s structure, the shareholder’s rights, how the company governs its internal affairs, and every other document to the management.
Other documents required by the ACRA include:
- The Consent to Act form from each director in the company,
- The Consent to Act form from the Secretaries, and
- Proof of residential address for all shareholders in the company.
Final registration with ACRA
Once the ACRA approves the company’s chosen name and required documents submitted, the ACRA shortlists the company for registration. The company receives an ACRA registration number and usually takes an hour but, in some cases, can take up to several weeks, especially when directed to an external government authority. After successfully registering with the ACRA, the company receives a certificate of incorporation and a company business profile. These two documents are sufficient for all business, legal, and contractual duties by the organization in Singapore.
Building a team in Singapore with Skuad
Singapore is an attractive destination for organizations planning to expand into the Southeast Asian market. However, incorporating a company in Singapore requires a myriad of processes which can be challenging and time-consuming.
Organizations planning to expand into or engage in virtual team building in Singapore can make the process easier by partnering with Skuad’s global employment and payroll platform. Skuad simplifies hiring international talent, paying employees and contractors, and ensuring compliance with Singapore’s employment laws without setting up a subsidiary or an entity.
With Skuad, you will save time and money while enjoying the benefits of top-notch HR administration and a brilliant team in Singapore.
To know more about Skuad, book a demo today.