Singapore has become a hugely popular destination for business entrepreneurs, but as with any country, it can take time to fully understand the steps required to get your company up and running. Then there are the legal requirements around running the business, from taxation to employment legislation; it’s essential that you have everything under control.
While it is possible to do everything yourself, there are significant benefits to using a professional company to guide you through the process. This article will highlight the key reasons why setting up a private limited company in Singapore is easy if you use a professional service!
Key Reasons Why You Should Use a Professional Service
While we are sure there are more, here are our top five reasons why it makes sense to outsource setting up your private limited company.
1. Experience and Expertise
When a company has built its reputation of setting up companies for others, then they develop experience and expertise to get things done quickly and efficiently. Setting up a new business can be a complex and time-consuming process, so it’s important to have someone on your side who knows what they’re doing and can get things done quickly and smoothly.
2. Advice and Guidance
When you’re setting up a new business, there are a lot of important decisions to be made. The wrong choice now can have profound implications further on, particularly when it comes to reporting and taxation. A professional company can help you navigate the process and make sure that you’re making the best choices for your business.
3. Financial Savings
Hiring a professional company to set up your business may seem like an expense upfront, but it can actually save you money in the long run. They can help you avoid costly mistakes and ensure that everything is set up correctly from the start, saving you time and money down the road.
4. They Take Care of the Details
Setting up a business can be a chaotic period of time. You may be recruiting a team, speaking with suppliers, and negotiating contracts, and when you’re spread too thin, then that’s when mistakes can be made, and things get forgotten. When you get in the professionals, they can take care of all the details, and now you can focus on more important things.
5. Peace of Mind
It often feels as if rules and requirements change on a daily basis, and keeping up with those can become a full-time job. Knowing that your business is being set up by professionals can give you a great deal of peace of mind, and you can rest assured that everything is being taken care of.
Can I Go it Alone?
Absolutely and you may see articles that talk about just three steps to set up a business in Singapore. And while that is strictly true, it’s not always that straightforward. So, those three steps:
Step 1 – Gain approval from ACRA for your company name
This first step can be really quick as long as the proposed business name doesn’t fall foul of the following –
- Names that are identical to an existing Singapore business or company
- Names that infringe on existing trademarks
- Containing vulgar or obscene language
- That another company hasn’t already reserved your choice of business name
- If the company name contains words such as “legal,” “school,” or “bank” it will require further vetting by government agencies.
Once you get approval for the business name, you can reserve it for up to 120 days. This then gives the time required for the incorporation of the business. If that hasn’t happened at the end of this period, the name is released and made available to other applicants.
Step 2 – Prepare Documentation
Now that you have the company name approved, the next step is to prepare the required documentation.
- Company Constitution: A standard template for the constitution is available from ACRA (the Singapore Company Registrar), but this might not always meet your company’s requirements. In that case, you’ll need a professional firm to draft the document for you.
- ID for the shareholders along with their residential address
- A signed Consent to Act as Director form for each of the directors.
- A signed Consent to Act as Company Secretary for the company secretary
Step 3 – Register your business with ACRA.
With the name approved and documents complete, the company can be registered with ACRA. You can usually expect this step to be completed within an hour or so unless the registration has to be referred to a government authority for review.
Finally, Confirmation of Registration!
Keep a lookout in your inbox for an email from ACRA, which will either come through to you or the professionals you hired to complete this for you. The mail will contain the Business Profile and the Certificate of Incorporation (COI)
With this in hand, you’ll be able to then move on to open a corporate bank account, along with signing an office lease and contracting services such as the internet and landline phones.