Singapore Incorporation is a great
avenue for businessmen and companies to invest in. Even with the financial crisis, they have
remained as one of the world’s leading economies that even America is seeking their
graces.
Singapore, as a whole, has carved itself a fine economic
status with its lower tax rates. Hence, it is a great choice to open up a
business in this area. It is relatively easy to put up your own business here
because of their business friendly policies that encourage entrepreneurship.
There are certain legalities to be considered when investing
here. The good thing about it is that the Singapore government has made it easy
and uncomplicated. An example of this is the Singapore Companies Act, Chapter
50 which requires all companies to be registered with the Corporate Regulatory
Authority.
Another example is the legal consideration of separating the
company from its owners. This mandates that any unsuccessful financial status
of a company does not give direct impact to its investors and
shareholders.
Private limited companies are required to use Pte. Lt. or
Ltd. under Singapore Incorporation
rules and regulations. This is done to further emphasize the company’s liability
and limitations. Another regulation is not allowing any business connection with
other nations. Plagiarism of existing brands are closely monitored and noted.
For a business to be approved and become part of Company
incorporation in Singapore, certain processes are to be done. Your
business must apply in Registrar of Companies which requires presentation and
submission the Memorandum and Articles of Association.
There are two things that must be clearly stated in the Memorandum.
First is that the operation done by the company should be transparent and
second is that there should be articles done showing governance and management structure.
Shareholders and share capital has its policy as well. It is
required by law that at least one shareholder’s file should be publicized. The share
capital should have no minimum requirement but it is an unwritten rule that the
minimum you can invest with is $1,000.
Another important requirement is the residency of the
company’s director. They must be a resident and citizen of Singapore or must
possess with an approved visa or work permit.
The files of the Director must be available as a public file but may
remain anonymous through shareholder nominee.
A Director must have only one responsibility commitment, and
so is not allowed to be a company secretary at the same time. The company is
required to have their own registered office and secretary to maintain their
tax status as a Singapore
Company. Information regarding this must be part of the information
submitted to the country’s Registrar.
There is also a certain requirement with regards to annual
group meetings. It is compulsory to conduct a company meeting within one year
and six months after the company was established.
The best part in establishing a company in Singapore is the
fast processing of its approval. Unlike other countries, their approval for
application only takes only a week.
If all of the requirements are met, then welcome to Singapore Incorporation.
