Company Incorporation Singapore
Singapore – Brief Description
Singapore has long been a popular choice when it comes to doing business worldwide. Doing business in Singapore is highly sought after due to factors including the quantity of competent labor, low taxes, and the strict protection of intellectual property rights. Furthermore, Singapore’s stable political environment, excellent strategic location and highly open economy make it attractive for companies looking to conduct business therein.
Singapore is one of the easiest countries to do business in – it was ranked second out of 138 economies in the World Economic Forum’s Global Competitiveness Report 2016-2017, and second out of 190 economies in the World Bank’s Doing Business 2017 report.
Advantages of Singapore Company Incorporation
01. Limited Liability
A Singapore company has a separate legal entity distinct from its members, allowing it to acquire assets, go into debt, enter into contracts, sue or be sued in its own name. The shareholders’ liability to the company is limited to the amount of their respective share capital investment, unless they have given personal guarantees.
Moreover, because of the separate legal personality of the company from its shareholders, it will continue to exist, even if its shareholders or directors die, resign, or go bankrupt.
02. Ease of Share Transfer
Shareholders are free to transfer their shares with other shareholders subject to any restrictions by the company constitution. Furthermore, company directors normally do not have the right to refuse the transfer of shares from one shareholder to another.
03. Established Legislation
Clear structures are laid out in the Singapore Companies Act, which is the main law that regulates and governs company compliance in Singapore. The Singapore Companies Act applies to all private and public companies incorporated in Singapore, as well as foreign companies with branches in Singapore and governs the organization and procedures to be followed by the aforementioned companies.
04. Minimal Shareholder Requirement
A Singapore company may be set up with only one (1) shareholder who do not need to be a national of Singapore and can either be a natural person or corporate body, and one (1) local resident director.
05.
The minimum number: One shareholder and director.
06.
Companies may find it easier than partnerships to borrow, as they are able to create floating charges over its assets.
07.
Incorporation is sometimes seen as supporting an image of status and credibility.
08. Relative Exemption from Audit Requirement
A “small company” is exempt from appointing an auditor and auditing its financial statements. A company is considered to be a small company if it fulfils at least two out of the following three conditions:
• The total annual revenue of the company must not exceed S$10 million;
• The total assets of the company for the financial year end must not exceed S$10 million;
• The number of full-time employees at the end of the financial year must not exceed 50.