Title: COMPANY INCORPORATION FAQ
1COMPANY INCORPORATION FAQ
Bestar Services Pte. Ltd
2COMPANY INCORPORATION FAQ
- These are the list of the questions most
frequently asked by the customers about the
process of opening a company in Singapore. - If you cant find an answer to your question
here, please call us on 65 62994730 or email us
at admin_at_bestar.com.sg and will revert within 24
hours.
31) What are the requirements for setting up a
company in Singapore?
42) How long does it take to incorporate my
company?
- With the help of specialist Company registration
and incorporation - like us Bestar you can have your
- company incorporated within 1 day.
53) What documents are necessary for the
incorporation of a subsidiary company in
Singapore?
- Subsidiary company incorporation requires the
following documents to be presented - Details of the subsidiary company proposed to be
incorporated. The name, share capital, key
personnel, shareholders, etc. - A copy of your passport and a Singapore ID of
every key personnel and individual shareholder. - A certificate of incorporation of the main,
parent company along with a document producing
the key personnel of the Head Company and address.
6 4) Do I have to be present to carry out legal
requirements while company incorporation?
- No.
- The procedure can be completed without your
presence here. - We can help you carry out the procedure by
sending you all the documents via courier, which
you can send us back.
7 5) Do I require prior approvals?
- Yes,
- A prior approval with ACRA will be necessary to
approve the name of your company before you begin
with your incorporation process.
8 6) Why should I opt for a company and not other
forms of business incorporation in Singapore?
- A company, incorporated as a Pte. Ltd.
- The Company is considered as the most powerful
business entity in Singapore. - Such an entity has a prime legal status, which is
separate from that of all its owners, directors,
and shareholders.
9 7) I do not meet the local/resident director
criterion. Can I still incorporate my company in
Singapore?
- There are other options to consider
- You could relocate to Singapore via an
Entrepreneur Pass to act as director later - You could take the help of someone you know in
Singapore, who will be able to act as a resident
director to your company - You can also seek out the help of a professional
services company, and hire a nominee director to
fulfill the clause.
10 8) Can a Director and the Company Secretary be
the same people?
- Yes,
- They can be the same person, provided they are
qualified to hold the two positions.
11 9) What do you mean by the constitution or
Memorandum of association of the company?
- The Constitution of the company is a legal
document that is registered with the ACRA during
incorporation. - The Constitution can be amended as and when
required. If the company is incorporated before
the date of commencement of Companies Act, 2014
(Amendment), the MOA or the Memorandum of
Association of the company is required to be
submitted.
12 9) What do you mean by the constitution or
Memorandum of association of the company?
- The Constitution/MOA of the company must contain
the following necessary pieces of information - The name of the company
- The capital structure of the company
- The liability of all the members
- Details of the subscribers along with the number
of shares subscribed by them - The governing rules for the internal management
of the company
13 10) When is the issued share capital supposed to
be paid?
- The issued share capital is required to be paid
immediately during the incorporation stage in the
Corporate Bank Account.
14 11) If I have a large paid-up capital, will I be
liable?
- Paid-up capital is nothing but the amount which
is paid by the shareholders towards the company
of which they are trying to purchase the shares
of. - The funds thus generated are supposed to be used
to meeting the expenses of the company, including
paying off any debts incurred by the company. - If the paid-up share capital amount is fully paid
for by the individual shareholders, there is no
need for personal liability. - However, if any amount is not yet fully paid-up,
the creditors can duly demand the liability and
shortfalls to be paid personally by the
shareholders.
15 12) How soon can I start using the money
generated from shareholders, as the paid-up
capital towards the growth of my company?
- There is no requirement of waiting for a certain
period before you can begin using the paid-up
capital for your company. - You can start using the amount received almost
immediately.
16 13) I am a foreign individual. Can I own 100
shares in the company?
- Yes.
- In fact, both a foreign individual and a foreign
company can own 100 of the shares of a company
incorporated in Singapore.
17 14) What business activities are allowed by the
Government of Singapore?
- There are no particular restrictions over the
kind of business you want to pursue in Singapore.
- However, certain businesses like travel agency,
financial services agency, school, recruitment
agencies, etc. are some of the businesses that
require a pre-approved license to be run.
18 15) Are there any cappings on the movement of
funds between my home country and Singapore?
- No.
- There are no restrictions on moving the funds
from and to Singapore, as far as legal business
purposes and activities are concerned.
19 16) Will the branch office I opened in Singapore
be qualified under a start-up exemption?
- No.
- Any branch office opened in Singapore is not
qualified for a start-up exemption. - However, the branch office can be considered for
a tax exemption over its chargeable income.
20 17) What is the current corporate tax rate in
Singapore?
- Corporate Tax currently stands at Exemptions,
both full and partial, can be provided over
taxable income of up to S 300,000.
21 18) Can I opt for a corporate bank account in
Singapore?
- Yes.
- Once the company incorporation procedure is
completed, you can open a corporate bank account.
22 19) Will my presence be required to open a
corporate bank account?
- This will completely depend on the type of bank
you choose. - Most corporate bank accounts can be easily opened
without the person being physically present,
however, some banks do require your physical
presence as well.
23 20) Will I be required to pay taxes for hiring
and staffing human resources for my company in
Singapore?
- As far as local Singapore citizen employees are
concerned, you will be required to contribute to
their Central Provident Fund at a specific rate,
depending on their salary percentage. - In the case of foreign employees, The Central
Provident Fund is not necessary. - Singapore is known for the independence of human
resources. Here the workforce is responsible for
its tax payments and as a company you are not
necessarily required to withhold any percentage
of their income as income tax.
24 21) What all compliances need to be fulfilled?
- Every compliance that is necessary will be
fulfilled by the Company Secretary you hire,
including AGM and return filing.
25 22) How long do I have to maintain my companys
accounting records?
- Any company registered as per the Singapore
Company Law is required to maintain
their accounting records to a minimum period of
five years. - Along with accounting records, you will also be
required to maintain every piece of document that
supports your business operations and
transactions.
26 23) What kind of grants can my company receive?
- Singapore Government has been placing immense
attention on the development of Small and
Medium-scale enterprises in the country in order
to boost the economy and to achieve productivity.
The Government thus provides corporates with
grants to push them to excellence. - These grants have the capacity to allow small and
medium scale enterprises to get all kinds of
assistance when it comes to business growth. - Grants and schemes like the Productivity and
Innovation Credit Scheme, Capability Voucher
Scheme, and iSPRINT are known to help Small and
medium scale enterprises with all the help they
require to make it big in Singapore.
27 More questions?
- Allow the experts at Bestar help you.
- Reach out to us, we would be happy to serve you.
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