Having frequently won many accolades and awards for being the most conventional city, Singapore is known to be an easy destination for doing business. It has grounded its unique heritage but enthusiastically embraced every technological challenge. Hence, it has become the latest trend amongst the modern businesses and multinational companies to set up a company in Singapore. One will not just claim a number of benefits by forming a company but also tap the uninvaded markets in Asia.
Limited Liability Company is the one where the liability of each shareholder is limited to their investment in the company. The economic environment in Singapore seems more favorable to an LLC if you are planning to set up a business entity to stay afloat for many years to come.
Features of LLC in Singapore
- It is a separate legal entity from its members and directors
- Minimum one shareholder is required
- At least one director who is an ordinarily resident of Singapore is mandatory
- An LLC must appoint an auditor within three months after incorporation unless the company is exempt from all the audit requirements
- Annual returns must be filed
- Must appoint a company secretary within 6 months of incorporation
Requirements to Set Up an LLC in Singapore
The minimum capital required to set up an LLC in Singapore is SG$1. The ownership of the company can be transferred and additional shareholders can be appointed. An LLC formation in Singapore also comes with a number of tax benefits; therefore, many incorporated companies enjoy lower tax rates as compared to the other type of business entities. For starting a company in Singapore, you have to follow a certain procedure as set by the authorities. Following are the steps required for setting up a Limited Liability Company in Singapore.
Procedure to Set Up an LLC in Singapore
- The first step towards your LLC company registration in Singapore is to choose and reserve a name for your company. Remember that the name must not resemble with any existing company name in Singapore. The proposed name must be then submitted to the Singapore Accounting and Corporate Regulatory Authorities (ACRA). They will cross check all the legalities and send you the notice of approval/disapproval
- The second step is to have the company’s Memorandum and Articles of Association (MAA) drafted. It must include all the information about the company and its shareholders. The drafted (MAA) must be signed in front of the registrar by the shareholders
- The next step is to send the incorporation application along with all the required documents to the ACRA. They will go through each and every document for the authenticity and if everything is according to the law, they will approve your request
- After the company is incorporated, you must register for the taxation services, open a bank account, obtain the necessary business license, set up a bookkeeping system, and recruit staff if necessary
Documents Required for LLC Incorporation
The following documents must be provided upon the incorporation of a Singapore Limited Liability Company:
- The shareholder’s identification papers, which can be the ID in the case of Singapore citizens and the passport in the case of foreign citizens
- Information about the company’s director or managers and the company secretary
- The company’s Memorandum and Articles of Association which must be notarized
- The receipt showing the payment of the company registration fee with the Trade Register
- Proof of the registered address in Singapore, which can be represented by an office rental contract
- Additional information will be required in case one of the shareholders is a company
The LLC is the most preferred choice by the foreign investors because the shareholders of the company will have limited accountability for the obligations and the debts of the company. However, if you are still reluctant of completing the procedure on your own, you can always take help of an agent of Singapore to carry out the registration procedure. We at Business Setup Registration do just that for you. Our services include company incorporation, registration, visa, taxation, accounting and bookkeeping, IP, and corporate secretarial services. Contact us today – we’d be happy to assist you.