Conditions to open a company in Singapore

Explore the key conditions to open a company in Singapore, from legal requirements to essential documentation, and set the foundation for your successful business venture in this thriving global hub. The business environment here is highly appreciated thanks to the perfect combination of transparent and stable policies, modern infrastructure and a clear legal system, maximizing the protection of investors’ interests. Besides, Singapore is also famous for its high-quality, multilingual and experienced workforce, ready to meet the human resource needs of all industries. It is these factors that have created an equal and potential business playing field, attracting businesses from all over the world. In particular, startups and SMEs will find in Singapore a favorable environment to develop and scale their businesses, thanks to a vibrant startup ecosystem and diverse startup support programs. Viet An Law will introduce a preliminary consulting service for opening a company in Singapore through the article below.

Consultation on conditions on who to open a company in Singapore

In Singapore, registering a company is relatively simple and open to both Singaporeans and foreign investors. However, to comply with the regulations of the Accounting and Corporation Authority of Singapore (ACRA), foreign investors need to use the local company registration service. The process of registering to establish a local company takes place as follows:

• Appointment of local directors: According to ACRA regulations, initially, the company must have at least one director who is a resident of Singapore. However, once the company is established, you can become the sole director and own 100% of the company’s shares.
• Role of the local director: The local director usually serves as the company’s legal representative in Singapore, responsible for the company’s important decisions. However, once the company is established, you can completely change this information.

Consultation on the conditions for members to participate when opening a company in Singapore

Having at least one shareholder

In Singapore, setting up a company is relatively simple and open to both Singaporeans and foreign investors. According to ACRA regulations, a company in Singapore is required to have at least one shareholder. Shareholders can be individuals or legal entities, Singaporeans or foreigners. The number of shareholders is not limited.

The interests of shareholders are protected by the laws of Singapore. Shareholders have the right to participate in the management of the company, receive dividends and divide assets when the company is dissolved. However, the liability of shareholders is usually limited to the amount of contributed capital or depending on the type of company establishment and unless otherwise provided in the company’s charter or law.

Having at least one secretary

The company secretary plays an important role in ensuring that the company is fully compliant with the laws of Singapore. They are responsible for administrative tasks, record keeping, and communication with state agencies. Conditions for appointing a company secretary

• Condition: The company secretary must be an individual, which can be a Singaporean citizen or a foreigner residing in Singapore. They need to have knowledge of corporate law and regulations related to the establishment and management of companies in Singapore and accounting and tax practice certificates.
• Responsibilities of the company secretary
  • Submit annual reports and other filings to ACRA.
  • Keep the company’s books and records.
  • Notify shareholders and directors of legal obligations.
  • Ensure that the company complies with the regulations on shareholder meetings and board meetings.

Consultation on minimum capital when setting up a company in Singapore

According to Singapore law, the minimum charter capital to establish a private limited company is only S$1 (SGD). However, it should be noted that the minimum charter capital is SGD 1, but…

• It doesn’t mean that only SGD 1 is needed: Although Singapore law only stipulates a minimum charter capital of SGD 1, contributing only SGD 1 can cause a bad impression of the company in the eyes of partners and customers.
• Depending on the industry: For some special business lines, such as finance, banking, or industries with large investment capital requirements, there may be separate regulations on minimum charter capital.

Company opening consulting services in Singapore by Viet An Law

Viet An Law is one of the reputable Singapore company establishment consulting services in Vietnam.

Why should you choose the services of Viet An Law?

• Understanding of legal regulations: Viet An Law’s team of lawyers has in-depth knowledge of Singapore corporate law, helping clients understand the relevant legal regulations and administrative procedures.
• Package services: Viet An Law provides a full range of services, from consulting on choosing a legal form, drafting documents, to company registration and post-establishment support.
• Save time and costs: With Viet An Law’s services, customers can save time and costs compared to carrying out procedures themselves.
• Post-establishment support: Viet An Law continues to support clients in the process of operating their businesses, including consulting on tax, accounting, sub-licenses, etc.

If you need assistance in setting up a company in Singapore, please contact Viet An Law Firm for quick support!