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Simply put, a single individual providing or doing activities can register himself or herself as the owner to become a formal business. The application fee for sole proprietorships and partnerships, LP and LLP is $100. If you plan to own a simple business, keep it simple and select the sole proprietorship structure. However, if your business will involve a lot more complex activities, then it is best to go for a much more structured approach, like a private limited company. Study the nature of your business before selecting an appropriate structure. In this business structure, you can have a maximum of 20 partners only.
Licenses and Permits
Failure to register your business may result in a fine of up to $10,000, or even imprisonment of up to 2 years, or both. You may refer to the guidelines on selecting a business name issued by ACRA to make the process of choosing a business fiscal sponsor definition name more efficient. On the other hand, as a company, remember that you must submit your yearly financial statements to ACRA and conduct an annual audit. To file your registration under the BizFile+ portal, log in and use SingPass.
Private Limited Company (Pte. Ltd.)
While a sole proprietor may only need a small amount, certain larger structures like a private limited company may require a larger sum. Basically this structure is used when you want to start a business that has a legal entity which is separate and different from its directors and shareholders. By following what could affect a company’s gross profit these steps, you ensure compliance with local laws and set a solid foundation for your business operations. With its streamlined company registration process, coupled with its business-friendly environment, robust legal framework, and competitive corporate tax rates, Singapore continues to be a magnet for entrepreneurs worldwide. A corporate secretary, also known as a company secretary, is required by the Companies Act of 1967.
Registration Process For Your Business in Singapore
There are many financing options which are available that would fit any size of your business. Just research according to your needs and study their offering before committing to one.
- For instance, while setting up a company is relatively more expensive compared to other business structures, the members of the company have the benefit of not being personally liable for the debts and losses of the company.
- Additionally, there are tax deductions and incentives for business activities like research and development, investment in approved activities, or qualifying expenses.
- Learn more about what you need to register your business, depending on the business structure you’ve chosen at Step 1.
On top of that, controlled goods require further authorisation from Competent Authorities before they may be imported into Singapore. Examples of such goods include chewing gums, firecrackers and telecommunication equipment. Separately, if a business wishes to export its goods out of Singapore, it must also go through the above process to obtain an export permit. For more information on the registration process, as well as the relevant exemptions from registration, you may refer to this article on registering a business. Additionally, for a sole proprietorship or partnerships, what is unearned revenue a definition and examples for small businesses the registration will expire once it has lapsed and was not renewed. However, the business name remains registered until the registration is cancelled.
You will need to understand the key differences between the structures and decide which is right for your business. Certain businesses may require various licences or permits to operate in Singapore. There are many regulatory requirements surrounding many different industries.
Do note that Housing Development Board (HDB) flats and private residential properties are intended for residential use, and there are conditions and guidelines that need to be followed. Most importantly, the property must still be used for residential purposes and the business activity must be kept at a small scale to avoid causing disamenities to your neighbours. If you’re starting a business in Singapore, the first question to consider is whether you need to register it. You may wish to contact a Banking and Finance lawyer for professional advice and help on such matters.
Must Foreigners Register Businesses in Singapore?
On a more legal aspect, it is usually commonplace for creditors such as banks to require a form of security in finance agreements when offering financial facilities. Companies can put up their assets, for example, office machinery or shares, as security. For instance, an unregistered blogshop owner being owed money by a client may find himself without legal remedies to reclaim the payment as their contract with the client cannot be enforced.
