Singapore is enriched with a multitude of trade and economic success and it has become a hub for aspiring entrepreneurs around the world to initiate company incorporation in Singapore. We have prepared a comprehensive guide to help you with registering a business in Singapore. The step-by-step guide covers the various registration procedures and requirements essential for starting a business in Singapore and it walks you through the formalities required to initiate a startup business on the Singaporean land.
If you’re operating as a foreign company then, it is crucial for you to get yourself registered as a Private Limited Liability company, and you should have the documents that indicates your company as a “separate legal entity”. Additionally, you should ensure that the shareholders of your firm aren’t responsible for holding debts under your business’ name. Opt for outsourced accounting services Singapore to get started with the formalities associated with company incorporation:
a) Open a corporate Singapore bank account
Over the years, Singapore has embraced popularity as Asia’s premium and top-rated financial center and entrepreneurial hub, and up to 125 commercial banks are operating in city-state to the newcomers and locals alike.
However, one of the primitive step in initiating a company incorporation in Singapore requires you to open your account with a local Singaporean bank. It should help you with receiving or sending money as a business, as well as your Singaporean bank account plays a crucial role in keeping your business legally compliant. Having a corporate account with a local bank has its perk; therefore, it should also benefit your employees and customers.
b). Determine financial year end of the company
Starting a business in Singapore requires you to stay informed on when a financial year ends in Singapore. Each of the small and medium enterprises in Singapore is required to present its Financial Year End (FYE) to the IRAS, and it accounts as the completion of an accounting year. The year-end of the companies based in Singapore doesn’t necessarily follow the regular fiscal year or regular calendar; therefore, you should stay updated on this matter.
The financial year of the company is no different from a regular “fiscal year”; however, most companies are given the option to decide its FYE. Most companies choose their year-end as December 31st; whereas, most choose to prepare their accounts and file their taxes on the dates; June 30, September 30, and March 31st.
c) Appoint an auditor
You are required to hire or appoint an auditor as soon as your company incorporation enters the third month after its inauguration. An auditor evaluates the financial statements of your company and it makes sure that the accounts don’t contain any revenue generated by unintentional means. The Companies Act (CA) has stipulated a number of requirements to complete a company’s audit successfully and comprehensively. In Singapore, public accountants and accounting firms that comply with Accounting and Corporate Regulatory Authority (ACRA) for new startup businesses.
d) Holding AGM and Filing Annual Returns
Savvy startups should take the accountability to hold AGM and Filing Annual Returns within 18 months of starting their company incorporation in Singapore. Make sure to read the amendments made to the filing system and proceed accordingly.
e) GST Registration
When it comes to running an entrepreneurial business in Singapore, a company would be required to initiate a registration for Goods and Services Tax (GST), and it should meet the following criteria:
- The company is expected to pay income taxes, in case the turn over for 4 quarters exceeds $1 million. However, if the company isn’t able to meet the criteria then, it should discuss the matter with IRAS.
- The company is categorized as “taxable” if the pending turnover amounts up to $1million for the next 12 months.
f) CPF and SDF Registration
Additionally, businesses should indulge in CPF and SDF registration to become able to operate as an independently-owned business on a Singaporean land.