Singapore Pte Ltd
Formation of Private Company Limited by shares (Pte Ltd) in Singapore.
A Singapore Limited Liability Company is an effective business tool for starting a business due to minimal business restrictions and tax exempted non-local business operations. The company is usually used for holding and investment companies or regional headquarters.
FACTS & INFO
There is no offshore legislation in Singapore. All private limited companies are incorporated under the same legislation - Singapore Companies Act, Chapter 50, whether they are doing business locally or offshore.
A private limited company is incorporated under the Singapore Companies Act, Chapter 50 and registered with Accounting & Corporate Regulatory Authority (ACRA).
A Singapore Company is a separate legal entity from its owners and as such the owners of the company are generally not liable for the debts of the company.
The most common type of company to be incorporated in Singapore is the private company limited by shares, commonly known as a private limited company. Shareholder’s liability, in most cases, is limited to the amount they paid into the company.
Singapore private limited companies must use the suffix Pte. Ltd or Ltd. to denote limited liability. Names which suggest any connection to the UK head of state are generally prohibited and certain words which suggest specialist activity can only be used when the appropriate licenses have been obtained e.g. bank, financial institution, insurance, fund management, university, Chamber of Commerce and other similar names. Name resembling names of existing companies or which are undesirable or politically sensitive will be rejected.
MEMORANDUM AND ARTICLES OF ASSOCIATION
A company is incorporated in Singapore by an application made to the Registrar of Companies. Memorandum and Articles of Association must be logged with the Registrar. Memorandum specifies the activities in which the company may engage and Articles of Association specify the rules governing the internal management of the company.
With effect from 1 April 2004, there must be at least 1 shareholder who can either be an individual of any nationality or a corporate body. Details of the shareholders must be filed and appear on the public file, but anonymity can be preserved by the use of nominee shareholders. Shares must be expressed in a fixed amount. Bearer Shares or No Par Value shares are not permitted.
There is no specific minimum capital requirement. The recommended authorized share capital is SGD$ 1,000. The minimum issued capital is one share of par value.
With effect from 1 April 2004, a Singapore private limited company is allowed to have a minimum of one director who must be “ordinarily resident in Singapore” i.e. a Singapore Citizen, a Singapore Permanent Resident or a person who has been issued an Employment Pass/Approval-In-Principle letter/Dependant’s Pass. It is usual practice to have more than one director in the company, where foreign directors can be also appointed. Details of the directors appear on the public file, but anonymity can be preserved by the use of nominee directors. The director and the company secretary cannot be the same person. Corporate directors are not permitted.
REGISTERED OFFICE AND SECRETARY
Every company, registered in Singapore is required to have a registered office and address there, which should be notified to the Registrar. Companies are required to appoint a qualified resident company secretary, who must be a natural person.
Company meetings need not be held in Singapore. A new company must hold its first Annual General Meeting (“AGM”) within 18 months of incorporation. Thereafter, the company must hold subsequent AGMs in every calendar year, and not more than 15 months from the last AGM.
Incorporation takes between 3 – 7 working days.
RECURRING AND MAINTENANCE FEE AS FROM 2ND YEAR
- Payment of the Government License Fees and provision of registered office and agent must be renewed by December 31 irrespective of the date of incorporation and annually from January to December thereafter
- Recurring Maintenance Fees as from the 2nd year - $4000
- Provision of Secretary and registered office
- Provision of Local Individual Director
Singapore registered companies enjoy very attractive tax exemptions and incentives. The company pays less than 9% for the first SGD$300,000 annual profits and 17% flat after that on income sourced in Singapore. There are no capital gains or dividend taxes on Singapore companies. Excellent tax benefits and the business reputation of Singapore are the key reasons why entrepreneurs from around the world prefer to form a company in Singapore.
To support entrepreneurship and to help Singapore local enterprises grow, a newly incorporated company that satisfies the qualifying conditions can claim for full tax exemption on the first SGD$100,000 of normal chargeable income (excluding Singapore franked dividends) for each of its first three consecutive Year Assessments.
A further 50% exemption is given on the next SGD$200,000 of the normal chargeable income (excluding Singapore franked dividends) for each of the first three consecutive Year Assessments.
- First $100,000 @ 100% = $100,000
- Next $200,000 @ 50% = $100,000
- Total $300,000 = $200,000
To qualify for the tax exemption for new start-up companies, your company must:
- be incorporated in Singapore (other than a company limited by guarantee);
- be tax resident* in Singapore for that Year Assessment. A company is resident in Singapore if the control and management of its business is exercised in Singapore.
- have no more than 20 shareholders throughout the basis period for that YA where:a)all of the shareholders are individuals beneficially and directly holding the shares in their own names; OR b)at least one shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company.
AUDIT AND FINANCIAL RETURNS
For companies with annual turnover over SGD $5m, annual audited accounts are required to be filed with the Singapore Registrar; the accounts must be audited by a qualified Singapore auditor. However, Exempt companies are not required to have their accounts audited and annual accounts can be filed without audit. To be defined as Exempt Company, the following conditions must be met: members of the company must not exceed 20, members of the company should be individuals and not corporations, and annual turnover should not exceed SGD $5m.
ESTIMATED CHARGEABLE INCOME (ECI FORM)
ECI must to be submitted 3 months after the end of the financial year. To complete it an estimate of the revenue of the company for the financial year is requested.
In order to prepare these, book keeping and preparation of unaudited accounts or audited accounts is required. The deadlines for these documents for the first financial year are based on the date of the company’s incorporation. For the next years the dates are fixed.
C-Form is the Corporate Tax Form requested by the Inland Revenue of Singapore. This is submitted on a yearly basis in November.
Our Services & Requirements
OUR SERVICES FOR THE COMPANY FORMATION IN SINGAPORE INCLUDE:
- Name check and approval
- Filling the incorporation documents with the Registrar of Companies
- Provision of registered office and corporate secretarial service for one year
- Provision of local nominee Director (obligatory) for one year. Included one off obligatory payment of Local Director Deposit for 1st year only
- Rubber stamp
- A standard set of original corporate documents:
- Registration forms
- Incorporation documents
- Service agreements
- Company profile
- Register and Minutes book
- Share Certificate
Please note: Singapore is not a member of the Hague Convention, as such documents legalized by Apostille are not available. For documents to be officially recognized outside of Singapore, you will need to legalize them by the Singapore Ministry of Foreign Affairs (MFA) or obtain an Apostille in another country.
If applying for a corporate bank account outside of Singapore you will need to order a full set of legalized company documents for the account opening procedure.
Please note that the Certificate of Incorporation is considered an additional service and therefore not included in the standard set.
DOCUMENTS REQUIRED FOR THE COMPANY FORMATION
Please provide the following documents for all Directors, Shareholders, Beneficial Owners, Authorized Signatories:
- Notarized copy of valid passport.
- Original or Certified copy of utility bill / bank statement (as verification of residential address, dated within 3 months).
- Original or certified copy of Banker’s reference letter (dated within 3 months).
- In cases where shareholders and/or directors are corporate bodies, full apostilled set of corporate documents and Certificate of Good Standing (for companies registered more than 1 year).
IMPORTANT NOTE: LICENSABLE BUSINESS ACTIVITIES
If you conduct any activity without required license or authorization granted by a relevant authority in any jurisdiction, STARTING BUSINESS will not be able to assist you with the company formation or bank account opening related to such unlicensed activity.
Licensable activities include, but not limited to: provision of financial services involving trading/brokerage in foreign exchange, financial and commodity-based derivative instruments and other securities; offering investment advice to public; insurance and banking business; operation and administration of collective investment schemes and mutual funds; payment processing services; money exchange, money transmission or money brokering; asset management; safe custody services; gaming, gambling and lotteries.
Please contact us if you need our assistance in licensing of your financial, Forex brokerage or gambling company.
Shipping of corporate documents or banking kits to your destination requires an extra charge and will be automatically added to your order during checkout. Shipping costs for international courier services are set automatically depending on geographic zones.