Setting Up a Local Company in Singapore

Setting Up a Local Company in Singapore | Bestar

Setting Up a Local Company in Singapore

Setting up a company in Singapore is a well-structured and efficient process, making the city-state a prime location for entrepreneurs and international businesses. This guide covers the essential steps, legal requirements, and key considerations for incorporating a local Singapore company, typically a Private Limited Company (Pte Ltd), which is the most common and recommended structure for most businesses.

Key Steps to Set Up a Local Company in Singapore 🇸🇬

The entire company formation process is primarily managed through the Accounting and Corporate Regulatory Authority (ACRA) via their online platform, BizFile+.

1. Reserve Your Unique Company Name

Your chosen company name must be unique and approved by ACRA.

• Uniqueness: The name cannot be identical or too similar to an existing registered name.

• Availability Check: You can check availability and reserve the name through the BizFile+ portal.

• Name Tips: Choose a name that is memorable, easy to pronounce, and reflects your business brand. Using relevant keywords can also aid online discoverability.

2. Determine the Company Type

The choice of legal structure is critical as it defines shareholder liability and regulatory obligations.

Company Type	Key Feature	Liability of Shareholders	Common Use
Private Limited Company (Pte Ltd)	Max 50 shareholders; cannot offer shares to the public.	Limited to their investment (most common).	SMEs, start-ups, foreign-owned subsidiaries.
Public Limited Company	Can have unlimited shareholders; can offer shares to the public.	Limited to their investment.	Large corporations, listed companies (subject to stricter regulations).
Unlimited Company	No limit on shareholders.	Unlimited (rarely used).	Niche situations where full shareholder liability is necessary.

Recommendation: The Private Limited Company (Pte Ltd) is the overwhelmingly preferred option due to its limited liability protection for owners and simpler compliance requirements.

3. Appoint Key Personnel

Every Singapore company must meet certain statutory requirements regarding its officers.

• Director(s): Must have at least one local resident director who is a Singapore Citizen, Permanent Resident, or holds a valid Employment Pass/EntrePass. Directors must be at least 18 years old and of sound mind.

• Company Secretary: Must appoint a qualified Company Secretary within 6 months of incorporation. The secretary handles all statutory administration and filings with ACRA. For a sole director/shareholder, that person cannot also be the secretary.

• Shareholders: A Private Limited Company must have at least one shareholder (who can be a corporation or an individual).

• Auditor (If required): If your company meets certain revenue/asset thresholds, you must appoint an auditor within 3 months of incorporation. Exempt Private Companies (EPCs) with annual revenue of S$10 million or less are generally exempt from this.

4. Set Up Share Capital and Draft the Constitution

• Minimum Paid-Up Capital: The minimum required paid-up share capital for incorporation is just S$1. This can be set up in any currency.

• Constitution: This is the company's governing document, formerly known as the Memorandum and Articles of Association. It sets out the rules for internal management, shareholder rights, and business operations. ACRA provides standard templates, which you can adopt or modify.

5. Determine Registered Office Address and Financial Year End (FYE)

• Registered Office Address: A company must have a physical address in Singapore (not a P.O. Box) where official communications and statutory registers are kept. This office must be open and accessible to the public during normal business hours.

• Financial Year End (FYE): You must decide on the date your company's financial year ends (e.g., 31 December, 31 March). This affects the deadlines for annual filings. A common practice is to align it with the business's natural operating cycle or the calendar year.

6. Submit Application to ACRA via BizFile+

Once all prerequisites are met (name reserved, directors/secretary/address/capital determined, constitution drafted), you submit the incorporation application and pay the required fees through the ACRA BizFile+ portal.

• Costs: The basic application fees are around S$315 (S$15 for name reservation and S$300 for incorporation).

• Processing Time: Applications are typically processed very quickly, often within a few hours to a day, assuming all information is correct and the name is approved.

Post-Incorporation Compliance and Obligations

Once your company is successfully incorporated, several annual obligations must be met to remain compliant.

Obligation	Description	Deadline
Annual General Meeting (AGM)	A meeting where shareholders discuss and approve the company's accounts and other matters.	Must be held annually, with specific deadlines based on your FYE.
Annual Return (AR) Filing	Submission of the company's particulars (directors, shareholders, financial statements) to ACRA.	Must be filed within 7 months of the FYE for non-listed companies (6 months for listed ones).
Corporate Income Tax (CIT) Filing	Filing of the Estimated Chargeable Income (ECI) and the annual tax return with the Inland Revenue Authority of Singapore (IRAS).	Varies, but the CIT return (Form C/C-S) is generally due by 30 November of the following year.
Maintain Statutory Registers	Registers of Members, Directors, Company Secretaries, and Registrable Controllers must be kept updated at the registered office address.	Ongoing requirement.

Choosing the Right Name 💡

A strong company name is vital for branding and identification.

1. Check for Uniqueness: The number one rule is that the name must pass ACRA's uniqueness check on BizFile+.

2. Web and Keyword-Friendly: Ensure the name is easy to type and that a corresponding domain name (e.g., .com or .sg) is available. Consider using keywords relevant to your industry to aid SEO (Search Engine Optimization).

3. Reflects Your Brand: The name should be memorable, pronounceable, and align with your company's values and business activities.

Financial Year End (FYE) Considerations

Choosing an appropriate FYE simplifies compliance and tax filing.

• Tax Alignment: Singapore's corporate tax year runs from 1 January to 31 December. If your FYE aligns with the calendar year (31 December), it can simplify the annual tax filing process with IRAS.

• Business Cycle: Some businesses choose an FYE that falls after their peak trading season to ensure all year-end revenue and expenditures are accurately captured.

Pro-Tip: Many companies use a professional incorporation service provider (Corporate Secretarial Service) to handle the entire setup process, ensure compliance, and act as the required Company Secretary, simplifying the journey for foreign entrepreneurs or those unfamiliar with Singaporean corporate law.

Effortless Company Setup: How Bestar Singapore Smooths Your Journey

Are you planning to set up a local company in Singapore? Navigating the regulatory landscape, compliance obligations, and financial requirements can be complex, especially for foreign entrepreneurs. Bestar Singapore specializes in providing the expertise and end-to-end support you need to launch and operate your business efficiently, ensuring full compliance from day one.

Choosing Bestar means partnering with a trusted advisor who simplifies the entire incorporation and management process, letting you focus on growing your business in Singapore.

Comprehensive Services to Launch Your Singapore Company

Bestar offers a full spectrum of professional services tailored for businesses looking to establish a strong presence in Singapore.

1. Seamless Company Incorporation

We take the guesswork out of the initial setup, guiding you through every required step with the Accounting and Corporate Regulatory Authority (ACRA).

• Business Structure Advice: We help you choose the best business structure (typically a Private Limited Company or Pte Ltd) that aligns with your specific needs, ownership goals, and liability requirements.

• Documentation and Filing: We prepare all necessary constitutional documents, handle the application process, and ensure accurate submission to ACRA, securing your official company registration number quickly.

• Statutory Appointments: We can facilitate the appointment of the required local resident director and act as your qualified Company Secretary, a mandatory role for all Singapore-incorporated entities.

2. Essential Regulatory Compliance & Management

Staying compliant is non-negotiable in Singapore. Bestar ensures your company meets all statutory and financial deadlines.

• Corporate Secretarial Services: We handle ongoing administrative and legal duties, including maintaining statutory registers, managing board resolutions, and fulfilling your Annual Return (AR) filing obligations with ACRA.

• Compliance and Regulatory Advice: We keep you updated on the latest changes to Singapore's laws and regulations, ensuring your company is always operating within legal parameters.

3. Accounting, Tax, and Financial Services

Financial clarity and optimized tax planning are crucial for success.

• Accounting Services: We manage your daily bookkeeping, prepare accurate financial statements, and ensure adherence to local accounting standards.

• Taxation Services: From preparing your annual Corporate Income Tax (CIT) return with the Inland Revenue Authority of Singapore (IRAS) to managing Goods and Services Tax (GST) compliance, we minimize your tax burden legally and efficiently.

4. Operational & Talent Support

Focus on your core business while we handle your operational support needs.

• HR and Payroll Management: We assist with local HR compliance, managing payroll accurately, and administering employee benefits, simplifying the process of hiring in Singapore.

• Business Licensing: We help identify and secure any required business registration or licenses specific to your industry or trade.

• Business Immigration Services: If you need to bring in international talent, we provide specialized services to navigate the process of securing work permits or employment passes for your foreign staff.

Why Choose Bestar for Your Singapore Launch?

Benefit	Description
Proven Expertise	Our team of experienced professionals has a deep understanding of Singaporean corporate law, ensuring accurate and compliant setup every time.
End-to-End Convenience	We handle all the paperwork, government filings, and legal requirements, offering a single point of contact so you can dedicate your time to running your business.
Cost-Effective Solutions	Our service packages are competitively priced, providing high-quality support without the overhead of maintaining an in-house compliance team.
Peace of Mind	Rest easy knowing your business is compliant and professionally managed, allowing you to accelerate growth without legal distractions.

Ready to start your business in one of the world's most dynamic economic hubs? Contact Bestar Singapore today to schedule a consultation and take the first step toward successful company incorporation.