Company Formation & Bank Requirement
As to compare the local company and foreign branch:
Local Company will be suitable for overseas investor to explore business opportunity in Singapore.
As for Branch, it will be more suitable for overseas Headquarter to create brand awareness in Singapore or having contract signed in Singapore and require branch to look after the project.
The liability for local company is separate legal entity distinct from its parent company and the liability is limited to subsidiary
The liability for Branch is NOT a separate legal entity but an extension of parent company
The allowed activities for local company can be the same or different from the parent company
The allowed activities for branch must be the same as the parent company
The local company must appoint one local director and local resident secretary
The branch must appoint at least one local authorised representative
For both local company and foreign branch can open a bank account remotely, a video call can be arranged after the entity is incorporated and business proof has been reviewed by the banker.
How to start a Business in Singapore
Despite the fact that starting an incorporated business or a smaller start-up in Singapore is welcomed by the country, you must keep some things in mind.
Like any business, your company needs to fill some kind of demand in the area or risk struggling to build up your client base. You’ll also need funding and an established network.
Here are some of the steps involved in starting a company in Singapore.
#1 Company Name
One of the first steps to a Singapore company formation is deciding on a name. After all, a name will dictate some degree of your client’s first impression towards your business.
In Singapore, companies can’t share the same name. Adding something like “corporation” won’t make a difference. As such, try to have something unique so that it stands out.
Also, keep in mind that your legal company name doesn’t have to be the same as your trading name. Both will need to avoid any copyright or trademark issues though.
After ACRA (the local business registrar) has validated the name, you can move on to the other steps.
#2 Activity Type
While you’re deciding on a name, you should also narrow down what your business actually does. ACRA will want you to pick a Singapore Standard Industrial Classification Code (“SSIC Code”), which identifies your company’s business activity.
We’ll be able to advise a suitable SSIC code, subject to your final confirmation. You’ll just need to provide the business nature or activity of your Singapore Company for our checking.
| a) | Director | Minimum of one director who has to be an ordinarily resident in Singapore (i.e. Singaporean/ Singapore Permanent Residence (PR)/ Singapore employment pass holder). In the event that there is no local director, we are able to provide a nominee director service for registration purpose. |
| b) | Shareholder | Minimum of one Individual Shareholder or one Corporate Body. (the shareholder does not need to be a local resident and the company can be 100% foreign owned). |
| c) | Initial paid-up share capital | Minimum of $1.00 (in any currency) |
| d) | Corporate Secretary | Must have one secretary who is ordinarily resident in Singapore |
| e) | Local registered office | Must have a local registered office in Singapore In case you have not decided to set up a physical office in Singapore yet, we are able to register the Company under our local office address. You may choose to change the local registered office address in the future. |
#4 Paid-Up Capital and Filing
Some of the requirements for a Singapore company formation include setting the paid-up capital and using an authorized filing agent.
The paid-up capital refers to the amount a company receives from shareholders for stock. For a start, you may set it as low as 1 Singapore dollar per share. At a later date, you may increase the sum or even change the currency it’s traded with.
It is advisable to engage a corporate secretarial services provider, like us, to prepare necessary incorporation documents that meet the compliance requirements of the Companies Act in Singapore. The corporate secretary acts as the authorised filing agent of your company, for example, to file the annual return and any changes required to be lodged through ACRA.
After everything is said and done, you should be free to recruit, advertise, and build up your business how you see fit.
Singapore Business Ideas
Starting a business in Singapore requires a good idea that’ll gain traction. If you’re still stuck on developing a business idea, there are plenty of options available.
Some of the top in-demand ideas in Singapore include agriculture, electronics, elderly care services, and biotech.
One entrepreneur from California started a catering business alone and built it from the ground up. His current annual revenue is S$240,000 a year. Another individual in Minnesota started a social media marketing service that now makes over S$600,000 a year.
Whatever idea you choose, try to focus on something you’re passionate and knowledgeable about. For example, even though advertising and marketing continues to be a lucrative industry, it helps to have some experience in the field.
[Singapore] Business Expansion for Singapore Market >>
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