How to set up a private limited company in Singapore?

Singapore is well-known for its pro-business policies and anti-bureaucratic government movement. You can look at Singapore's position in the World Bank's Doing Business Ranking to see how simple it is to start a business there. And out of all business types available in Singapore, private limited companies are the most preferred by foreign investors.

Singapore is a country with a thriving economy, attracting a lot of attention from many investors

So, what are the advantages of setting up a private limited company in Singapore? Exactly why do both foreign and local investors prefer this type? Most importantly, how to set up a private limited company in Singapore?

In this article, we give you detailed information and tips on how to set up a private limited company in Singapore.

What is a Singapore Private Limited Company?

A private limited company is a separate legal entity from its owners and is restricted by shares. It is recognized as a separate taxable entity. As a result, a Singapore private limited company's stockholders are not accountable for its debts or losses in excess of their share capital.

The following are the main requirements for setting up a private limited company in Singapore:

• At least 01 shareholder and a maximum of 50 shareholders (individual or corporate entity)
• 01 local director
• 01 business secretary
• A minimum of 1 Singapore dollar in paid-up share capital
• A physical address in Singapore

Advantages of Setting Up a Private Limited Company in Singapore

Advantages of Setting Up a Private Limited Company in Singapore

The private limited company form would be very beneficial to a business owner wishing to start a holding or an offshore company. Consider the following advantages of setting up a private limited company in Singapore:

• Have Distinct Legal Identity
• Reduce Finance Risk Exposure
• Promote Credibility
• Raise Capital Easily
• Enjoy Certain Tax Exemption
• Transfer Ownership Easily

Documents required to set up a private limited company

The documents required to set up a private limited company in Singapore you will need are:

• A distinctive and original business name
• Director’s personal information
• Each shareholder's personal information
• The Company Constitution (formerly known as the Memorandum and Articles of Association) laying out all of the management guidelines, as well as the company's activities, membership, and shareholding structure
• The physical address of the company
• An explicit shareholders agreement

What Should You Do After Setting Up a Private Limited Company in Singapore?

After setting up a private limited company in Singapore, you will receive a Certificate of Incorporation, a Certificate of Shares, along with the company's business record.

Establishing a company in Singapore opens up many new development opportunities

However, you won't be able to start doing business in Singapore until you comply with the post-registration requirements that come with private limited companies. Following is a list of the steps you should take right after incorporating;

• Apply for relevant business licenses and permits. One IBC will assist in providing these types of licenses
• Hold the first Board Resolution in the first month of establishment. This is a special meeting to confirm the directors of the company
• Open a corporate bank account with one of the many local and international banks based in Singapore
• Appoint an auditor of the company within 3 months after incorporation
• Appoint a company secretary within 6 months after incorporation
• Apply for Goods and Services Tax (GST) if your company's annual taxable income exceeds S$1 million
• Apply for the Singapore Central Insurance Fund (CPF) pension scheme
• Hold the General Meeting of Shareholders (AGM) annually
• Submit your company's annual revenue within 30 days of holding the AGM
• File your company's corporate income tax annually by November 30
• Apply for related government programs and incentives. For example, you might consider the Business Grants Program, Startup SG Tech, or Startup SG Accelerator. Singapore has a wide variety of options to choose from.

Start now with One IBC

These guidelines should make setting up a private limited company in Singapore simple for both locals and foreigners. However, working with a specialized business incorporation service provider like One IBC can make the process considerably quicker, faster, and more thorough.

One IBC knows everything there is to know about starting a business in singapore , as well as the processes involved in maintaining corporate compliance over time.

One IBC's diverse service ecosystem supports businesses

In addition to setting up a company in Singapore and 27+ jurisdictions, we also have a variety of other services that can support your overseas businesses, including opening a bank account, accounting & auditing, business licensing, trademark registration, virtual office.

Learn more about us at www.oneibc.com or contact our Hotline +65 6591 9991. We are always ready to hear from you.