No one discusses how you are three tabs into a government portal, and are asking yourself all the life choices that have brought you here. This is the true first-time experience of the Singapore business registration and it should be given a sincere discussion. It is this that counts. Read full report!
Singapore is right when it says that it is business friendly. The system is truly constructed on speed as it has continually been among the top in the world in ease of doing business. But haste will always aid you when you come ready.
All this starts at ACRA. All business registrations in Singapore are regulated by the Accounting and Corporate Regulatory Authority whether it is a sole proprietorship, partnership or a private limited company and all of this is done via their portal, BizFile+. Registration normally takes one day. Often faster.
The structure of Private Limited Company still seems to be the obvious favorite of founders who are serious about the creation of something. It shields individual responsibility and the dialog with investors significantly simpler, and access to a valuable pool of government grants. Minimal entry requirements are required: one director that is a resident of the country, a registered Singapore address and paid-up capital of SG100,000.
The director requirement is one of the areas that foreign entrepreneurs often come to a dead end. The absence of a local director implies nothing is done. The solution to this issue is nominee director services, but it should be a decision that is thought of. Making an appointment of another as a formal directorship is no transaction, but a transfer of actual responsibility.
Seriously consider your SSIC code. Majority of individuals choose an option that appears to be reasonable and proceed. That will give silent service against you. This six-digit industry classification code is far-reaching than meets the eye, affecting your access to banking, the ability to grant eligibility and foreign manpower rights. Not fitting well will not result in penalties, but will impose invisible ceilings on you at the most inappropriate time.
Many of the proud founders have been brought down on their knees by corporate bank account applications. The compliance teams pose some sharp questions related to your business model, source of revenue, and expectation of transactions. Indistinct responses bring about delays. Proper documentation, which has been well prepared can save the process by several weeks.
People are also caught unawares with GST registration. It becomes compulsory when it has annual turnover of over S $1 million. Thereafter, it is purely optional. Other businesses voluntarily register as a way of indicating size and reputation; others do so when the size requirement dictates such. Both ways are not necessarily right – what is right is your customer profile and your market situation.