It is important to know what a company is in Singapore. A company is a legal entity. This means it has most of the same legal rights as a person. It can sue and be sued in court. It also has the legal right to buy and sell property. Owners of the company are referred to as shareholders. Someone is a shareholder if they hold at least one share in the business. That share must be valued at least one dollar. Even though a company is an entity, it must pay taxes on a corporate tax scale. Registration of a Singapore company must be through ACRA. ACRA is the Accounting and Corporate Regulating Authority.
There are certain qualifications for those that wish to register a Singapore company.
1. The person must be at least 18 years of age. Also there need only be one director that is over 18.
2. A Singapore citizen is qualified.
3. A Singapore permanent resident is also qualified.
4. If you hold an employment pass or work visa, you can qualify. This also goes for dependents that hold a dependent pass.
5. If you do not hold an employment pass, you still may qualify. You can meet the qualifications of an employment pass and have not yet been approved. This is known as an approval in principle.
6. Your company must have at least one director and one shareholder. You can be both shareholder and director. However, it is usually a good idea to have at least two directors. Many legal documents will require two separate signatures.
7. There are also legal considerations. A director cannot be someone that is bankrupt. Also, a director must not have criminal convictions for dishonest practices.
There are three types of companies that can be registered in Singapore. The will either be private or public companies. A company becomes public when it offers shares or interests in it. Here are the three types that can be registered in Singapore.
1. Private companies that are limited by shares are the most common companies in Singapore. This is abbreviated as “Pte Ltd”. They can be public or private. However, once a private company has more than fifty shareholders, it becomes public.
2. Non-profit groups like charities and religious groups can set up a public limited by guarantee, company. They must not raise money by selling shares. If the organization is liquidated, members will be required to pay a fee of at least one dollar.
3. There are also unlimited companies. They basically have no restrictions on them. This type of situation is rare.
You will not be required to pay an annual fee when you register a company in Singapore. There is a fee for approving your company name. It is only fifteen dollars. Limited by share organizations must pay a fee of three hundred dollars. Limited by guarantee organizations are required to pay a fee of six hundred dollars.
The above is a high-level overview of qualifications for a company registration in Singapore.
For detailed information, visit GuideMeSingapore website. http://www.guidemesingapore.com