Singapore ranks among elites when key global businesses come into the spotlight. Despite being a relatively young nation, it is recognized as a premier destination for business ventures for business across diverse sectors. The Singapore Business Register has actually recorded a 12.3% rise in new company formations, reaching a total of 588,764 registered companies in 2023.
This growth reflects Singapore’s favorable business environment, attractive corporate tax framework, robust IP trademark protection, exceptional infrastructure, highly skilled workforce, and supportive business environment, resulting in an enduring appeal to domestic and international entrepreneurs and investors.
The country’s strategic location near major emerging markets and its extensive network of trade agreements with over 100 regions worldwide facilitate efficient business operations. This efficiency is exemplified by Changi Airport, a global hub connecting over 152 cities across 51 countries.
This exceptional connectivity not only showcases Singapore’s world-class transportation infrastructure but also highlights its robust telecommunications systems, providing a solid foundation for businesses and professionals seeking to thrive in the region.
Discover the Reasons Why Singapore is a Fertile Ground for Innovative Tech Businesses.
Starting a Business in Singapore
Starting a business in Singapore can be both rewarding and challenging. The independence that comes with being your own boss is immensely satisfying, but it’s important to follow the rules to ensure that your business operates legally.
For those looking to incorporate a company in Singapore, understanding the Singapore Business Registry is a must. This knowledge will not only help you meet legal requirements but also set your business up for long-term success in a competitive market.
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What is the Singapore Business Register?
The Singapore Business Register, managed by the Accounting and Corporate Regulatory Authority (ACRA), is a comprehensive electronic database that holds detailed information on all registered companies in Singapore. Established in 2004, ACRA oversees company registration and regulation, while also promoting sound corporate governance practices.
The database provides important details, including:
- Company Information: Name, registration date, status, and other key details.
- Officers: Information on directors, secretaries, and their contact details.
- Shareholders: Data on shareholders and their shareholdings.
- Business Profiles: In-depth descriptions of a company’s operations, financial performance, and ownership structure.
This resource is invaluable for conducting due diligence on potential business partners or investment opportunities in Singapore.
Multiple ways to access the Singapore Business Register
Online: The BizFile Portal offers convenient direct access to the registry.
In-person: Visit the Accounting and Corporate Regulatory Authority (ACRA) office for immediate access.
Paid Profiles: Purchase detailed business profiles by registering and funding an account on the BizFile Portal.
Free Basics: Obtain a company’s name, registration date, and status free of charge.
Why do you need to register your business in Singapore?
To establish a business in Singapore you need to register your company with the ACRA. Company registration is necessary due to the following reasons:
First and foremost, it gives it legal identification and protection. Establishing a legal entity in Singapore ensures your business and its employees are protected by Singaporean law.
Second, it opens the door to a wealth of benefits and incentives. Companies established in the country enjoy attractive tax rates, extensive government support programs for startups, and streamlined regulations in key areas such as Intellectual Property and Banking.
Moreover, Singapore’s policy of allowing 100% foreign ownership of private companies makes it an ideal location for international entrepreneurs looking to maximize their opportunities in a globally connected marketplace. Lastly, establishing trust and credibility is crucial. Singaporean legal recognition boosts your business’s credibility with customers and stakeholders.
It shows that you have the resources and commitment needed to earn their confidence. With this credibility, you’ll gain greater opportunities for building customer relationships and driving business growth.
Business structure types
Have you determined the type of business you’re starting? Before proceeding, you need to identify your business structure. This decision will greatly affect your company registration process, including required paperwork, personal liability, and tax obligations.
Here are the common business types you can register in Singapore:
Sole Proprietorship or Partnerships
A sole proprietorship is a business structure owned by one person, known for its straightforward setup and management. In this structure, the proprietor has unlimited liability, as the business and the individual are legally the same. It’s a common starting point for those looking to launch a business in Singapore.
Company
This is a business structure that creates a legal entity distinct from its shareholders and directors. This separate entity status means the company can own assets, incur debt, enter contracts, and engage in legal actions, just like an individual.
Limited Partnership (LP)
This is a type of partnership that involves at least two individuals: one serving as a general partner and another as a limited partner. The general partner assumes unlimited liability and manages daily operations, while the limited partner’s liability is capped at their investment, allowing for a clear distinction between management and investment roles.
Although flexible, this structure lacks a separate legal identity, meaning the partnership cannot own assets or sue independently. Registration with ACRA is mandatory, and having a partnership agreement is advisable to clearly define the terms and responsibilities within the partnership.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a flexible business structure that combines the benefits of a partnership with limited liability protections similar to a corporation. To establish an LLP, you must register the business name and the LLP with ACRA.
At least two partners are required, and one manager must be a Singapore resident who is at least 18 years old. This structure is ideal for professionals who want to collaborate while protecting their personal liability.
Private Limited Companies (Pte Ltd)
This is a popular and flexible business structure that functions as a separate legal entity. It protects the shareholders’ personal assets by limiting their liability to the capital they’ve invested.
This structure is also recognized for its credibility and scalability, Additionally, Pte Ltd provides operational flexibility in financing, management, and day-to-day operations, making it well-suited to the dynamic needs of a growing business.
SG business registration process
Now that you’ve explored the advantages of company registration and the various business structures available, let’s proceed to the process itself. Here’s a simplified guide to incorporating a company in Singapore:
- Choose a business structure
Choose the appropriate structure for your business. See the previous section for details. - Select a company name
Choose a distinctive company name and provide two alternative options. Your name should be original and not match any existing business. Additionally, outline your business’s primary and secondary activities. - Secure an SG business address
Your registered address is used for official purposes. It must be accessible during business hours but can be different from your operational address - Designate a board of directors and shareholders
Directors must be at least 18 years old, have no disqualifications, and include at least one local Singaporean resident. Shareholders can be individuals or legal entities. Additionally, appoint a Corporate Secretary and an Auditor. - Submit your registration application
Gather the necessary documents and submit your application via the ACRA website. ACRA is the national regulator for businesses, public accountants, and corporate service providers in Singapore. Check the ACRA website for more information. - Pay the required fees
The fees are SGD 15.00 for the company name application and at least SGD 300.00 for registration. Third-party service providers may charge additional fees. - Wait for the issuance of your certificate of incorporation
A certificate of incorporation will be issued to you via email upon successful application. - Open a corporate bank account
Once you’re all set, open a local corporate bank account for all business transactions. Personal accounts are not allowed for business use.
The registration process can be completed in a few days with accurate and timely submission of all requirements. If additional review or investigation is needed, the process may take up to 60 days. The ACRA online application system offers a convenient way to review and submit all necessary documents.
Summing up…
Singapore’s supportive regulatory environment, efficient online systems, and competitive tax benefits have established it as a leading business hub. Combined with its high quality of life, it’s an excellent location for both domestic and international companies.
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