10 things you need to know when setting up a company in Singapore

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In this day and age, to expand the scale of your business, to take precaution against risk in business, or to make a long-term personal plan for your family (payment for your children's overseas education, housing purchase, money transfer to relatives in foreign countries, etc.); many people have chosen to open a bank account in Singapore.

In this article, let’s find out the reasons why you should open a personal bank account in Singapore, the benefits of opening a bank account in Singapore, all the top banks in Singapore, and the procedures of opening a bank account in Singapore with Global Link Asia Consulting.

1. Company Secretary

Within six months after incorporation date, all Singapore companies must appoint a Singaporean resident to be the company secretary for your Singapore companies. The company secretary must have in-depth knowledge and understanding of the Singapore Companies Act to give guidance and assistance to the Singapore company in meeting all the requirements specified by the Singapore Government. The key role of the Singapore company secretary is to make sure that the operations of the Singapore companies comply with Singapore laws; especially in fulfilling the obligation to submit annual reports to IRAS (Inland Revenue Authority of Singapore) and ACRA (Accounting and Corporate Regulatory Authority).

2. Registered Office Address

Business must have an actual address in Singapore to be registered office address of Singapore company (no post office box address accepted), and this address must be approved by Urban management agency in Singapore.

Note:
All the important mails from ACRA and IRAS will be sent to the registered office address of the Singapore company.

3. Nominee Director

All Singapore companies must appoint a Singaporean resident or a foreigner holding a work pass in Singapore (such as EntrePass or Employment Pass) to be the Nominee Director for the company in Singapore. Nominee Director must:

  • Be at least 18 years old
  • Have no criminal record
  • Cannot be an undischarged bankrupt
  • Incur no fines against the Singaporean government

The Nominee Director's primary role is to comply with the resident director requirement in Singapore. Furthermore, the nominee director is responsible for maintaining the statutory books of the Singapore company, etc.

4. Audit Exemption in Singapore

Enforced from 1/7/2015, if the company incorporated in Singapore qualifies two out of three following criteria in the last two financial year, that Singapore company will be exempted from the audit obligation:

  • Total annual revenue is not more than $10 million.
  • Total gross assets are not more than $10 million.
  • The total number of employees is not more than 50.

5. Goods And Services Tax (“GST”) Registration

If the annual projected or actual turnover of your company exceeds one million SGD, you must register (GST in Singapore, also known as valua add tax (“VAT”) in some other countries. GST registered companies must charge GST tax on the goods and services provided for their customers (the current GST tax rate is 7%) and pay this amount of money to IRAS).

6. Special business licenses for you Singapore Company

For common good trading activities, the company is not required to apply for any business license in Singapore.

However, certain business sectors such as education centers, tourism agencies, financial services for import-export-related industries, medical services, food services, and so on require the Singapore company to apply for one or several business licenses before commencing operations in Singapore. company. Upon completion of the incorporation process for the Singapore company, Global Link Asia Consulting will assist you in license application in Singapore (if requested).

7. Accounting Records requirements in Singapore

Business is required to properly maintain accounting records at least for five years to be able to explain the transactions and financial position of the company in Singapore when requested.

8. Updating changes in Company information and Company’s activities To ACRA

Business is required to update any changes regarding information of directors, shareholders, registered address, numbers of shares to ACRA. Non-compliance with the obligation of company information update in a timely manner will incur fines against ACRA.

9. Unique Entity Number declaration for Singapore company

Singapore companies must declare unique entity number (“UEN”) (specified by ACRA in the Bizfile) on any official documents issued including but not limited to commercial contracts, reports, invoices, etc.

10. Filing Annual Reports To ACRA

All companies incorporated in Singapore are required to file:

  • Annual Return (AR) and Annual General Meeting (AGM) to ACRA and
  • Estimated Chargeable Income (Form ECI) and Company Income Tax (Form C/C-S) annually to IRAS.

For individuals/businesses wanting to set up a new company in Singapore, it is of utmost importance to enquire and compile all the requirements enforced by governmental agencies in Singapore. This may result in obstacles for you when preparing papers and documents to set up your company in Singapore successfully. Therefore, seeking help from a business consultant with in-depth knowledge of Singapore governmental agencies as well as their operation procedures is your most optimal and prompt solution.

Global Links Asia Consulting Company - a consulting firm specializing in offering ONE-STOP solutions for every business in every level of your business development - is ready to support your business with the following services:

With our one-stop solutions, we pride ourselves on being a trustworthy partner - working directly with major notable banks such as OCBC, DBS, UOB, Standard Charter Bank, ANZ, etc and international payment gateways such as PayPal and many other partners. With many years of experience working in this industry and having supported many companies, Global Link Asia Consulting are confident to bring the best quality of our services to all clients.

Contact us now:

  • Vietnamese Hotline(+84) 0938 531 588 (Call/ Skype)
  • Singaporean Hotline: (+65) 3163 4102 (Call)
  • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

This article was written by Global Link Asia Consulting Pte. Ltd., and was first published on https://www.globallinkconsulting.sg/ on 9 July, 2021. Its copyright belongs to Global Link Asia Consulting Pte. Ltd.. All rights reserved. You may not, except with our express written permission, copy, modify, commercially distribute or exploit the content.

 
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