Setting up a company in Singapore is an exciting prospect for entrepreneurs, as it offers one of the most conducive business environments in the world. Besides the well-developed infrastructure and a government that supports business, Singapore’s proximity to Asia’s 4.68 billion people is a key advantage for many companies.
The first step in Singapore business incorporation is identifying the best structure for your business. Here are the most common choices:
Private company limited by shares – This is the preferred business entity for local and foreign investors alike. This is because unlike sole proprietorships and partnerships, a private company has a separate legal identity from its shareholders, making it responsible for its debts only up to the value of shares that it holds. It can also receive tax benefits from the Singaporean government, which reduces the overall corporate taxes.
Joint venture – The joint venture is another popular choice for companies in Singapore. This allows you to leverage the expertise of local partners, while keeping your financial risks low. Joint ventures are also subject to greater statutory regulations, so it’s important to seek advice from professionals before proceeding.
A professional firm you engage with will help you draft a company constitution. This document outlines your company’s values, expectations and processes. It must be submitted to ACRA together with your business registration application. Once approved, the constitution becomes a legally binding document. Generally, it will state your company name and the type of business you intend to do. You must also declare the minimum paid-up capital of your company. setting up a company in Singapore