- May 9, 2020
- Posted by: coseclinicadmin
- Category: Sharing
The Local’s Guide on Incorporating a Private Limited Company in Singapore.
If you’re planning to register a business or you need to form a private limited company in Singapore. This guide will help you in the process and explain about company incorporation in brief.
Forming a private limited company is a brilliant way to establish a business in Singapore and tap into the land of opportunities and growth. This form of company incorporation is flexible, provides limited liability to the shareholders, and considered as a separate legal entity.
The private limited company incorporation is achieved in compliance with ACRA, a national regulator of accounting and corporate service providers in Singapore. Read on to know more about a private limited company, its advantages, and the incorporation procedure.
What is a Private Limited Company?
A private limited company is a legal entity and provides limited liability to its shareholders. This means the shareholders are not personally liable for the debts and losses of the company. Most businesses in Singapore are incorporated as a private limited company and have a suffix of Pte Ltd or Ltd in the brand name.
Minimum Set Up Requirements
The minimum requirements to incorporate a private limited company are listed below:
- One resident director
- One qualified resident company secretary
- Physical office address
- At least one shareholder, it can be an individual or corporate entity
- At least S$1 as initial paid-up share capital
Documents Required To Incorporation A Private Limited Company in Singapore
To incorporate a private limited company, you will require the following documents and considerations.
For the successful incorporation of your company, you will require a company name. Make sure it is unique, not identical, or reserved by an existing local company. Your company name is the identity of your business in the market, so choose it wisely.
Brief Description of Business Activities
Follow the Singapore Standard Industrial Classification Code (SSIC) 2020 to determine the category of business activities your company operates in.
Explanation of Shareholding Structure
You have to provide the shareholding structure of your company, meaning how shares are distributed among the shareholders.
It is important to provide a shareholder agreement to form a private limited company. It specifies the rights and relationships between shareholders as well as avoid potential or future disputes.
Details of Shareholders
To incorporation a private limited company in Singapore, you need to provide personal identification details, residential address, and contact information of shareholders. Also, a private limited company can have a maximum of 50 (local or foreigner as 100% non-local shareholding is allowed) shareholders and need at least one shareholder to qualify for the incorporation process by ACRA.
Details of Directors
Details of directors are required to incorporate your company. Also, you need to appoint at least one director who is a Singapore resident or citizen and at least 18 years old.
Company Secretary Details
You need to appoint a qualified company secretary within six months from the date of incorporation. The company secretary should be a Singapore resident and can be the director or shareholder of the company. However if there is only 1 director, then that director cannot be the company secretary.
Registered Address Details
A physical registered address is required to successfully incorporate a company in Singapore. This is where every communication and notices are addressed. It should not be a P.O Box address.
Constitution of Company
The Consitution of Company is required to apply for the company incorporation process. These documents specify the company activities and rules governing the internal management of the company.
Incorporation Process of Private Limited Company
The incorporation process is fully computerized by ACRA and consists of two steps:
Company Name Reservation
Your company name needs to be approved by ACRA before forming a private limited corporation. Make sure it is unique and not already in use for fast approval.
Once the name is approved, you can complete the incorporation process by submitting all the required documents.
After your company is successfully incorporated, you may purchase the following documents from ACRA:
- Certificate of Incorporation
- Company Business Profile
Private Limited Company Incorporation Services By CoSeClinic
The incorporation process of private limited companies is easy in Singapore. We will guide you through the incorporation steps and help you incorporate your business in Singapore with our company incorporation services. Contact us today!