Compared to other countries that are considered as business hubs, it is easier and quicker to set up a Singapore company that the process can actually take only one to two days to complete given all the proper requirements are completed and the application is duly submitted. And with a more efficient registration process, the city-state has become one of the most attractive and sought after business centers in the Asia Pacific region.
Meanwhile, these are the most important questions to ask before you start a Singapore company:
1. Question: What is a Singapore company?
Answer: A company stands as a legal business entity separate from its shareholders and directors which means that it can purchase and own properties, file a case, and be charged in lawsuit under its name.
2. Q: How many shareholders can own a company?
A: Under the Singapore Companies Act, a company may be owned by one to 50 shareholders who may be a “natural” person or corporate entity.
3. Q: What are the provisions about appointing a company director?
A: A company should have at least one resident director who may be a permanent resident, natural citizen, or foreigner who has been issued with EntrePass, Employment Pass, or Dependant Pass.
Meanwhile, there is no limit on the number of the additional directors as long as they will meet these following requirements: at least 18 years of age; not “undischarged” bankrupts; and not yet convicted of serious criminal offense or malpractice.
In Singapore, a sole shareholder may also be the director as long as he will meet the requirements stated above.
4. Q: Are there any limits on foreign ownership?
A: No. In fact, a company can be 100 percent owned by a foreign corporate entity or individual and may still qualify for certain tax incentives and be taxed as a locally incorporated company.
5. Q: What is the most important requirement for foreign companies and businessmen during the incorporation process?
A: They should appoint a professional services firm during the incorporation process since any foreign entities and individuals are prohibited to register their own business.
6. Q: Can a foreign businessman register and own a company without having to relocate in the country?
A: Yes, but he should appoint a resident director. But in case that he has no trusted contact in Singapore, he can ask his business registration firm to provide him with a nominee director for a long-term or temporary basis.
7. Q: Is it a requirement to appoint a company secretary?
A: Yes. However, a company secretary, who must be a Singapore resident, should not be one of the shareholders or directors.