All companies in Singapore must be registered with the Accounting & Corporate Regulatory Authority (ACRA) and abide by the Companies Act, Chapter 50. While there are five different entities to choose from, namely sole proprietorship, partnership, company, limited liability partnership and limited partnership; the most common and flexible option is to set up a Singapore company.
The obvious benefit is that a company in Singapore is limited by shares and is a separate legal entity from its shareholders. It is recognised as a taxable entity in its own right. As a result, shareholders of a Singapore company are not liable for its debts and losses beyond their amount of share capital.
Thus, those willing to kick-start their careers as entrepreneurs must register a Singapore company first; the key requirements for which includes:
- - at least one shareholder
- - one resident director (may be a citizen, permanent resident, EP holder or Dependent Pass holder)
- - as the company requires one shareholder and one resident director, it can be the same person. But it’s always advisable to opt for at least two directors as banks and other financial institutions usually require two signatories.
- - one company secretary
- - initial paid-up share capital of at least S$1
- - a physical Singapore office address
Read more about Singapore Exempt Private Company at Singapore Company Incorporation.
