How to set up a company in Singapore ACRA?
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Singapore plays a key role as a business epicenter in Asia and is uniquely positioned in the global economy as a gateway to the rest of the Asia-Pacific region. With its low tax rates, skilled English-speaking workforce, respect for intellectual property rights, and strong business and investment opportunities, this is undoubtedly one of the most competitive Asian countries to start your company.
If you are looking for a springboard from which you can access the region’s emerging economies with your startup, Singapore is one of your best options.
Every company doing business in Singapore must register with ACRA. They will need to choose their business structure and take the necessary steps to register the business with ACRA.
ACRA Singapore is a regulatory body that promotes entrepreneurship in Singapore. ACRA Singapore is committed to providing a secure and audited business environment by auditing financial statements, auditors, and corporate service providers.
Get a visa for a registered company in Singapore ACRA
Entrepreneur Pass or EntrePass is a required visa for those who want to register a company in Singapore ACRA. If earlier the rules were tightened, then in recent years they have become softer. It is important to remember that EntrePass must be requested before or within six months of the date of company registration. After six months, you will need to apply for a work permit.
The documents you will need for ACRA registration are photocopies of passports, certificates of previous work in English, and a comprehensive business plan that outlines your startup’s business idea, market analysis, market plan, products/services to be offered etc. Suppose the business already has an ACRA registration number. In that case, you will also need to provide a copy of your latest startup profile as shown on the website and a bank statement showing the required minimum paid-up capital of S $50,000.
Create a legal entity before ACRA registration
Establishing the identity of your business in Singapore is a relatively simple process without unnecessary red tape. There are six basic requirements that your business must meet to qualify for ACRA registration in Singapore:
- Have from one to 50 shareholders; they can be local or foreign, natural or legal persons.
- A paid-up capital of at least $50,000.
- At least one Singapore resident director other directors may be foreigners.
- The company secretary is an individual residing in Singapore and appointed within six months of the company incorporation.
- A registered local business address, which cannot be a PO Box.
- ACRA Singapore approved brand name, currently registered business names to ensure that what you are looking for is not taken.
Once these six requirements are met, you can register your business online with ACRA Singapore. The process is relatively simple and takes about an hour. Alternatively, companies can do the entire process for you and provide a company secretary to help you with the job.
Taxation and audit for ACRA register company
Taxation and auditing is a mandatory step for most commercial organizations, and you will need a third party to record your annual audit reports. In terms of taxes, all companies must file two income tax forms with the Internal Revenue Service of Singapore (IRAS): Estimated Income Tax Income (ECI) and Form CS/C. You will not need to file an ECI if you have an annual revenue for a fiscal year that was less than $5 million.
Often, companies that help with business registration offer tax and auditing services to eliminate this time-consuming task.
Open a bank account. While opening a commercial bank account is not required for the ACRA registration number, it is highly recommended to simplify taxation and tend to be more professional. There are three main business bank accounts to keep in mind: DBS, OCBC, and UOB.
The DBS Startup Entrepreneur Account is by far the easiest to open, and there are many ATMs and bank branches. All you have to do is make an initial S $500 deposit, and it will be quickly approved. Please note that you need to maintain a minimum balance of S $10,000 per month; otherwise, you will be charged a $15 fee. While they charge additional fees like setup fees, security appliance fees, and monthly maintenance fees, they don’t apply for the first two years, like the annual corporate debit card fee. In addition, you will need to pay the ACRA registration fee.
An OCBC Business Entrepreneur account and a UOB checking account are also good options to check out. Alternatively, you can choose a virtual bank account to further facilitate your international customer relationships and pay the ACRA registration fee more easily.
Recruit suitable candidates for your company
How to set up a company in Singapore ACRA? When it comes to recruiting, websites like JobStreet, JobsDB, and LinkedIn are the best in Singapore. You can also check MyCareersFuture, but note that this website is only open to Singapore citizens and permanent residents.
Please note that you will need to contribute 17% of the salaries of citizens and permanent residents to your Central Reserve Fund (CPF).
Find your workplace. Since renting an office in Singapore can be very expensive, especially if you need an office in or near the Central Business District, coworking is a good option for startups. There are many coworking spaces in and around Singapore’s CBD that offer various benefits such as flexible rental offices, conference rooms, operational support, dedicated lounges, and more. Coworking is also great if it offers flexible work, allowing people to come to work when they need to and work remotely.
You can use ACRA search for a company name to check reserved company names.
Build your brand; the best way to do it is through social media and high media coverage. Make sure you have a well-designed website to attract leads or partners, keep people in the loop and keep in touch with your business via Twitter and LinkedIn. Find an original name for your company and use ACRA search for a company name.
Benefits of starting a Singapore company
Singapore is the epitome of free-market progress. This city-state has evolved from an area associated with poverty and overpopulation to the fourth largest country on the planet; this is after going through a recovery process that other jurisdictions cannot even begin to emulate.
When we say that is the fourth-largest economy globally, you might think it might be an inaccessible place that only the lucky few can get to, but nothing could be further from the truth.
Here are the benefits of starting a Singapore company:
- It has the highest personal safety index in Asia.
- Singapore has the freest economy in the world, according to the Index of Economic Freedom.
- English is used in business and administrative matters to avoid language barriers in business.
- There is a free movement of currency.
- The official currency of Singapore is stable and well-positioned against the euro and the dollar.
- They have a favorable tax regime with more than 50 agreements to avoid double taxation
- It is a small but efficient state.
- They have reliable regulators.
- Singapore’s infrastructure is one of the most advanced in the world. From superfast internet to transportation. Singapore has it all.
- They have very diversified investment areas. Singapore has thriving markets in every industry imaginable.
- It has one of the best legal systems in the world when it comes to protecting intellectual property.
How much does it cost to set up a company in Singapore?
Who needs to register with ACRA?
Does home based business need to register with ACRA?
How do I know if my company is registered with ACRA?
What is ACRA registration number?