As a home to enterprises operating across the wide spectrum of conventional and new age industries, Singapore always tops the charts compared to other jurisdictions. Its scores are perfect in terms of indicators such as political stability, economic competitiveness, the efficacy of the business ecosystem, transparency of regulations, and other such parameters which are crucial for a business to grow. The business law in Singapore allows for a variety of business structures or legal entities that will ideally meet the diverse needs of business owners. Choosing the right type of entity is a mission-critical decision for entrepreneurs. Private Limited Company is one of the many business entities through which an entrepreneur can start their business in Singapore. It is also known as the Private Limited Liability (PLL) Company in Singapore. The PLC is a company limited by shares while being a separate legal entity from its shareholders.
Advantages of a Private Limited Company in Singapore
- Every share in a PLC Singapore can be owned by a foreigner
- For the first three years of setting up a PLC, substantial tax exemptions are available
- Shareholders liability is limited to their share capital contribution
- No minimum capital is required to form this business
- Audits are not required for small PLCs
- Gateway to Southeast Asia for better regional opportunities
Requirements for a PLC in Singapore
- At least 1 company director who is ordinarily a resident in Singapore (Singapore citizen, Singapore permanent resident, or a Singapore Employment Pass holder)
- At least one shareholder
- Company secretary
- Minimum paid-up capital of at least $1
- A registered office address in Singapore
Those are the minimum key requirements that every entrepreneur intending to open a private limited company in Singapore is expected to fulfill. Once this step has been completed, entrepreneurs can then move on to the next phase, which is getting the necessary documents ready for the Singapore company registration.
How to Set Up a PLC in Singapore?
Every company in Singapore must register with the Accounting and Corporate Regulatory Authorities (ACRA). The steps to register your business in Singapore are as follows:
- Register your company name. Every PLC must select a unique company name which is not the same or too similar to an existing Singapore legal entity’s name. The PLC’s company name must end with the words “Private Limited” or its abbreviation of “PTE Ltd.”
- File a signed agreement of shareholders defining the relationship between the shareholder and the company with their obligations and the right clearly established
- Once the registration is approved, the Company Registrar issues a Unique Entity Number (UEN) which identifies the company as being duly registered
- Then, a company business profile is prepared by the Registrar which includes the company’s name, registration number, date of incorporation, description of the types of business enterprises, registered office address, amount of paid-up capital, and details regarding the initial shareholders, directors, and secretary
- In the final step, the Registrar issues a Certificate of Incorporation which includes the company’s name, date of incorporation, and initial shareholders which is available to the public. The certificate provides proof of incorporation, registration, and the number of shares issued to the initial shareholders
To register, the company must have a minimum paid up capital of $1 SGD and the incorporation process can be completed within a day if all the documents required are in place.
Documents Required to Set Up a PLC in Singapore
- An application form
- Name of the new company
- Details of the proposed business activities
- Details of the shareholder
- Details of directors
- Local registered address
Despite the easiness of the Singapore company registration, foreign entrepreneurs may find it challenging to manage all the administrative pre-registration paperwork. Not only is it procedure-intensive, but also it requires awareness of the latest business registration trends and tons of local requirements. If handled unprofessionally, company registration can be detained due to paperwork hitches. We at Business Setup Worldwide can help you with this process and make it hassle-free. Our advisors have years of experience in this field and can guide you through every step without any glitches. Contact us today – we’d be happy to help.