So you’ve gotten around to wanting to register a company eh? Congratulations! It’s a huge step in the right direction, but it’s important to do so correctly, so before you head over to incorporate your business, let’s go over some details that are worth knowing of.
First of all, the type of business or company you want to start depends on a number of factors. Are you the only one starting the enterprise, or do you have partners and co-founders? Do you want to have a formal board of directors or shareholders, or do you wish to be 100% in control of all decisions yourself?
It’s also important to know where the liability should lie. If you register a single person company it’s possible to be indebted privately for the company’s losses. But on the other hand, you can also take profits when you wish and how you wish.
Tax is another important concern. Let’s take Singapore for an example. The way the government has set up tax deduction on companies, is simple. Up to S$100.000 can be exempt during the first 3 years, if you qualify for this package. The government rolled out this scheme to help Singaporeans bootstrap small businesses, and also foreigners have taken kindly to this idea.
So let’s take a look at what’s requires for incorporating a company in Singapore:
- ACRA is an organization run by the government to help oversee businesses and their incorporation. They require 3 different company name proposals. This is because names have to be approved beforehand.
- You also need to appoint at least one director. To start a company in Singapore you need to have one of the directors to have been born there, but it is not mandatory that they control a part of the company or shares.
- You also need a real registered address for your business. This address can often be just a rented office address, or anything more than that.
- You also need to open a back account in the country, and use that for your businesses interactions.
- Finally, it is mandatory to choose a company secretary, and if the company is a single person business, the owner cannot also be the secretary.
These are some of the requirements, now let’s take a look at the benefits:
- Any private limited company in Singapore is their own legal entity, which means that directors and shareholders will not be held personally accountable for any losses, lawsuits or other liabilities incurred by the business itself.
- Singapore has offered a S$100.000 tax exemption scheme for new businesses for the first 3 years, which means making money is easier than ever.
- Many companies in the country offer to appoint Singaporean residents to your company, and be there physically when required by law. This means you can open a company as a foreigner, without ever setting foot in the country.