Important Information About Company Formation

There are numerous reasons why company formation in Singapore is popular. Because it is a modern country with first-class infrastructure and technologically state-of-the-art telecoms and internet industry, it is really a superb area for business proprietors.

Forming your own company in Singapore implicates that you abide by certain rules. Refer to the Companies Act (CAP 50 of the 1994 Revised Edition of the Singapore Statutes) which, in general, is anchored on rules established in England.

There are three popular types of commercial business units, specifically, private limited company, limited liability partnership and sole proprietorship. The private limited company is the most common and preferred type of business on which the foregoing guidelines are centered.

These are the fundamental legal requirements for company formation in Singapore: (1) At least one shareholder who can be either be a local or foreign individual; (2) At the least one director who should be a natural person At the least 18 years old; (3) At least paid-up capital of S$1; (4) Locally registered address; (5) Eligible company secretary to be employed within 6 calendar months of incorporation; (6) Approved company name that is unique and with no unpleasant words; and (7) Validated licenses and permits for specific businesses like private educational institutions, childcare and video companies.

The shareholder can likewise be the director. Nevertheless, because banks and other financial institutions will usually necessitate 2 signers, it is best to have at least 2 directors for the easy processing of company formation.

For proper company formation with regard to the private limited type of business, it is essential that the director has good credit standing and abides to the following criteria: (1) A Singaporean citizen; (2) A Singaporean permanent resident; (3) An Employee Pass bearer; (4) An Approval-In-Principal Employment Pass holder; and (5) A Dependant Pass holder.

There are circumstances where there is a need to hire the services of a consultancy firm for your company formation venture. Foreigners are mandated to get the services of professional consultancy firms. Local residents of Singapore may opt for self-incorporation, wherein the directors, secretary and shareholders must all be either Singapore citizens or permanent residents.

Sandhurst Consultancy Pte Ltd offers expert and high quality accounting services. Contact us today and let our able professionals also guide you through your company incorporation endeavor. Unique version for reprint here: Important Information About Company Formation.

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