Lawyers in Singapore
Setting up a company in Singapore
by Business Listings EditorPhoto credit: iStock
You have completed your business plan, had your peers review it multiple times, have pitched and found potential investors, and now you are ready to start your own company. Excited? You should be.
Singapore is probably one of the best countries for setting up a new company as the process is easy-peasy so to speak, and can be completed in a few days. That said, there are still some guidelines that you have to abide when starting your company, and you will also need the help of legal advisers to help you go through the process. We share the important things to know before you start up your first company.
1. Local Directors
An important requirement is that at least one of the Directors of the company must be a local resident. This means at least one Director must be either a permanent resident or a Singapore citizen, failing which the company cannot be incorporated.
2. Registered address
Another requirement is that the company must have a registered address. If you are uncomfortable using your home address; you can pay a fee to a law/accounting firm and use their office address as your company’s registered address.
3. Purpose of the Company
It is very important to know the nature of the business you wish to incorporate the company for. The needs of a company manufacturing vehicle parts will vastly differ from an online blog shop.
4. Type of Company
Most readers know that they can limit their liability by incorporating a private company limited by shares. However, under Singapore law it is not the only incorporation option available. A chat with a law firm like Ascentsia Law Corporation may open more options; depending on your business and risk profile as to the type of company to be incorporated which is suitable for you.
Points to note: Responsibilities after incorporation
While the incorporation process is straight-forward, the responsibilities arising after incorporation often take many by surprise.
1. Filing annual returns
After the Company is incorporated, there is an obligation on the part of the Directors to ensure the annual returns for the company are filed. If done incorrectly, it will result in fines being imposed by ACRA and in extreme cases the Directors being prosecuted in Court.
2. Duties and Responsibilities of Local Directors
Local directors are responsible for both the filing and financial aspects of the Company. The decision to become a director, especially a silent / nominee director is therefore not an endeavour one should embark on without an exit plan and understanding of what is at stake.
Benefits
In spite of the responsibilities, many benefits await the brave soul taking their first entrepreneurial step. Singapore tax incentives and government grants help many new businesses to be created and grow.
About our Contributor: Cannis Seng is an Advocate & Solicitor at Ascentsia Law Corporation. He specializes in advising entrepreneurs and existing business owners on the broad range of legal issues which arise from starting and operating their companies. He also takes a keen interest in assisting his clients to sort through and apply for the multitude of government grants available. Feel free to contact him if you would like to know more about incorporating your very first company.
Are you a budding entrepreneur looking to incorporate your company? Visit Business Directory to help you select a good lawyer in Singapore who can help you set up your company today.