Singapore

The following forms of entities are the most popular to incorporate in Singapore:
– Private Limited Company (Pte Ltd)
– Sole-proprietorship
– Partnership
– Limited Partnership (LP)
– Limited Liability Partnership (LLP)

A company refers to any business entity that has been registered under the Chapter 50 of the Companies Act. The three types of companies are:

– Exempt Private Company: Has 20 members or less. No corporation possesses interests in holding the company’s shares.
– Private Company: Has 50 members or less.

– Public Company can consist of more than 50 members

– A sole-proprietorship is defined as a business that is owned by a single individual. This individual usually has the absolute say in business operations.
– A citizen, permanent resident, employment pass holder, dependent pass holder, or a foreigner can set up a sole-proprietorship in Singapore.
– Foreigners must meet the additional condition of appointing a local to manage their business.
– A sole-proprietorship is a suitable choice for low-risk businesses run by a single individual.
– Fast and easy to set up
– Easy to manage
– Cheap to register
– Registration must be renewed annually

– A partnership is defined as a business entity formed by two or more partners. This type of business may have up to 20 partners at any time.
– The partnership must consist of at least two Singapore citizens, permanent residents, employment pass holders, dependent pass holders, or foreigners. Foreigners must meet the additional condition of appointing a local to manage their business.
– Fast and easy to set up
– Easy to manage
– Cheap to register
– Registration must be renewed annually

– A limited partnership is defined as a business entity formed by two or more partners. However, one or more partners must function as a General Partner and one must function as a Limited Partner.
– There is no limit on the number of partners in a Limited Partnership.
– Limited partnerships can be set up by foreign or local individuals or companies. All Limited Partnerships must appoint a local business manager if each General Partner is residing outside Singapore.
– Fast and easy to set up
– Easy to manage
– Cheap to register
– Registration must be renewed annually

– A limited liability partnership is defined as a business entity in which the liability of the partners is limited.
– There is no limit on the number of partners in a Limited Liability Partnership.
– Limited liability partnerships can be set up by foreign or local individuals or companies.
– All limited liability partnerships must appoint a local business manager.
– Fast and easy to set up
– Easy to manage
– Must be registered only once
– One of the managers can lodge the annual declaration of solvency

– Proof that the company name has been registered with ACRA.
– A short description detailing business activities.
– Details for the business’s registered address in Singapore.
– Information on the company shareholders
– Information on the company directors
– Details on the company secretary
– Any foreign entrepreneurs founding the company are required to submit their passport and their overseas residential address.
– Foreign companies are required to submit Articles of Associations and a Memorandum
– Any Singapore residents founding the company are required to submit a copy of their Singapore identity card.

Hiring local Singaporean staff is a straightforward process. Any foreign staff members will be required to obtain a valid pass or a visa to work in Singapore.

Businesses are also required to follow the Employment Act, which applies to both locals and foreigners. Employment contracts in Singapore must include vital details such as:
– Work commencement date: The date when employment will commence. May also include probation details where applicable.
– Salary details: Basic pay and allowances must be mentioned. The Employment Act requires salaries to be paid at the end of the month. Employees must also receive an extra one month’s salary known as an Annual Wage Supplement
– Job and duties profile: Various job responsibilities and competencies must be mentioned
– Working hours: Provisions detailing overtime can be included. Employees earning less than $2500 cannot be made to work more than 44 hours per week.
– Annual leave: An annual leave of 14 working days is the minimum requirement under the Employment Act.
– Sick leave: Details regarding unpaid sick leave must be included. Employee health insurance is not mandatory under the Employment Act.
– Child Care Leave Provisions: Local employees receive 16 weeks of maternity leave. Foreign employees receive 12 weeks of maternity leave.
– Notice period for terminations: Employees must be provided a resignation or termination notice in writing.
– Confidentiality clauses : Standardised to the enterprises specific requirements.
– Laws governing the employment contract: All employment contracts are governed under Singapore law.

You will need a physical office address that is located in Singapore. This office must be open for a minimum of five hours per day on business days.

A virtual office can be used for registration purposes if it meets the aforementioned requirement, and also has mail forwarding services, a dedicated landline, and a registered business address in Singapore.

Setting up a corporate bank account is one of the final steps for company incorporation in Singapore. Singapore has over 120 commercial banks for companies to choose from. Only five of these banks are local, while the remainder are foreign. Some of the popular foreign banks include HSBC, Citibank, Standard Chartered, and ABN Amro.

For assistance with opening a bank account in Singapore, please contact us.

Please contact us in order to discuss the closing of your Singapore company.