There are so many reasons why setting up a Singapore company is a good idea. First, a Singapore company incorporation process is straightforward. Second, registering a business in Singapore is quite easy to do.
However, it is also important for the shareholders to understand that they are not really entitled to all the benefits that they can enjoy under a limited liability company setup. For instance, they cannot make direct transfers from their personal accounts to the Singapore Company’s accounts. Neither can they have any voting rights on the decisions of the board of directors. And if the resident director of the company should embezzle funds, Singapore authorities can punish him or her. However, the laws on corporate crime in Singapore are very mild compared to those in other countries. For these reasons, every Singaporean should understand what the law says about corporate incorporation, the nature of its corporate protection, and how it applies to them.
The Role of the ACRA
Forming a company in Singapore is not difficult to do even if you are just starting your career as a businessperson. All you need to do is choose one of the approved companies that register themselves with the Accounting and Corporate Regulatory Authority (ACRA). Next, choose an office space and register your company. An offshore company incorporation in Singapore is as simple as this. You will have to pay a nominal registration fee and you will get yourself a company registrar ID and a bank account, both in the prescribed format.
Requirement of a Nominee Director
If you are a non-residential entity, you will be required to open a nominee director office in Singapore. A nominee director office is a separate account in which your company’s principal shareholder or owners can deposit their checks. In addition, you will have to get a business licence from ACRA, and follow the stipulated laws of Singapore regarding the incorporation of businesses. The laws of Singapore state that your company must have an audited financial statement, copies of minutes of Board Meetings, and a full and final report of its annual financial year ending date.
In order to save costs on company registration, you must look for packages that come with tax incentives. The Singapore company registration services that offer free submission of the statutory forms will normally provide you with a tax reduction of about 15% on the registration fees. Also, some of the registration services provide you with an online option that will enable you to save on costs.