Starting a company can be a very tedious job to most of us. Besides it being a common and very popular dream to have company of your own, it is one of the least implemented dreams. This is because the process of company start-up discourages many.
However, incorporation of company in Singapore has been made easier. The government has released guidelines and requirements on how to register and start a new company. This has opened Singapore to multiple investors both local and foreign
opening their companies in the country.
In addition there are companies opened solely to help entrepreneurs incorporate their own companies at a price. Most of them providing subsidiary, branch and representative office set-up for overseas clients. Below are guidelines on how to incorporate your company. (Incorporation is required in order to set-up a company and start business.)
So first, The proposed company owners are supposed to submit an online application to BizFile. BizFile is ACRA’s electronic filing and information retrieval system. The application is for approval of the company’s name and for its registration. The proposed company directors may submit the application by themselves by logging in into BizFile using their SingPass or CorpPass.
They may also give the application to a registered filing agent such as a law firm, accounting firm or corporate secretarial firm to submit their application to BizFile. The Total fee is $315: $15 for Name Approval Fee and $300 for Registration Fee.
After submitting their application online to BizFile, the company awaits processing of the application. For a normal company, the processing takes 15 minutes after paying of the application fee. However, other companies need approval from a referral authority or ministry.
These companies have business activities that involve the respective authorities or ministries in one way or another. Such as a company seeking to establish a private school, needs approval from the ministry of education. For companies needing approval from referral authorizes the processing takes 14 days to 2 months after payment of the application fee.
After submission and processing of the applications, and are approved the company may start business; provided it doesn’t require licenses to carry out the business activities from referral authorities.
The proposed company is then expected to submit the company constitution to the registrar. A model company constitution is provided by ACRA to help companies create and write their own Company constitution. Something to note: private companies limited by shares should:-
1) restrict the right to transfer its shares and
2). Limit its members to 50 at most. This is according to section 19(1) of the Companies act.
After submission of the company’s constitution to the registrar, the proposed company directors are expected to endorse their consent online through BizFile. This is within 120 days from the name application approval date. After this the company name is reserved for 120 days from the date of name approval and by no circumstances is this period extended.
The proposed company directors may give the registrar an alternative address at a fee of $40. The alternate address must be in the same jurisdiction as the individual’s residential address and it must be an address where the person can be contacted and is not a P.O Box.
Finally, all newly incorporated companies receive a free business profile. And upon successful registration the company receives a confirmation email. The email has a link to download the free business profile.
With this it is easy to incorporate your own company with no contempt of the law.