Registration of a Private Limited Company in Singapore
Updated on Tuesday 24th March 2020
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The private limited company in Singapore is one of the most popular business forms, owing its success to its characteristics and the fact that it has a simple set up process.
The registration of a private limited company in Singapore is performed with the Accounting and Corporate Regulatory Authority (ACRA), which has a computerized system in place that allows for a fast-track registration.
This business form is suited to investors who do not plan to open a business that will have more than 50 shareholders. An important advantage is that there are no applicable distinctions between the rights of local investors and those of foreign entrepreneurs. They both enjoy the right to open a business in Singapore and they can act as directors. Singapore has a 100% foreign ownership policy.
In this article, our agents who specialize in setting up a private limited company in Singapore describe the main pre-registration and post-registration steps as well as all of the issues that need to be taken into consideration when starting this type of business.
What are the pre-registration steps for a private limited company in Singapore?
The most important issue that needs to be handled before the actual registration of a company in Singapore is the approval of the company name. The chosen name needs to be a unique one and investors can prepare more than one option when submitting their name reservation. In general, the applicant can receive a positive or negative answer within approximately one hour after submitting the name reservation request. Names that include specific words, such as banking or law, will generally require more time for the reservation.
Reserving and securing a name is an important step for the registration of a private limited company in Singapore and investors can reach out to one of our agents for more information on the duration of the reservation and the general conditions for approved names.
Is the registration of a private limited company in Singapore conditioned?
Apart from reserving the name, investors will also need to present a set of documents and handle other issues, such as secure a registered office. Below, we list some of the issues that are required for the registration of a private limited company in Singapore :
- Draw up the company documents: these will include the company name, the address, details about the business and the founders.
- Appoint the director: the LLC in Singapore must have one director who needs to be duly appointed.
- Appoint the secretary: having a company secretary is mandatory, however, this is a step that can be handled at a later date.
- Have a registered address: the company needs to have a registered address in Singapore and this cannot be a postal box.
- Prepare the capital: this is a very low amount, a minimum of 1$ which may be increased later.
The steps outlined above are important when setting up a private limited company in Singapore. One of our agents can detail them to interested investors.
What are some of the post-registration steps for company formation in Singapore?
Opening a bank account is a step that can be handled post-incorporation. Likewise, those companies that need to obtain additional special permits and licenses will be able to apply for them once the registration certificate is issued.
The registration of a private limited company in Singapore will take only a few hours after the application has been filled in and the documents have been gathered. This can take longer when additional information is required.
Singapore is a preferred location for company formation in Asia. Some of the statistics for company registration are as follows:
- the number of new companies in April 2019: 5,182; as a comparison, this number was 4,092 in December 2018 and 4,851 in April 2018.
- number of limited liability partnerships during the first trimester of 2019: 1,410
- number of sole proprietorship and partnerships during the first months of 2019: 3,608
The data presented herein is provided by the Singapore Department of Statistics.
The private limited company remains the preferred business form because of the advantages it offers in terms of easy incorporation, a very low minimum share capital as well as the limited liability it provides to its founders. Unlike in the case of the sole trader or the partnership, the founders of a private limited company are only liable to the extent of the amount they invest in the business.
Investors who need specialized aid for the registration of a private limited company in Singapore can reach out to one of our agents who can provide complete details as well as adequate assistance.
Contact us for more information about the private limited company in Singapore and for personalized services.