Doing business in Singapore means business registration. You must register your business in Singapore if you want to set up shop there. It could be a sole proprietorship or a partnership or maybe a limited liability partnership. Any of these structures are possible under registration.
Sole Proprietor refers to a self-employed business person or one company. This person or company must be a Singapore citizen or a permanent resident. The profits of the company go to the sole proprietor, and that person pays income tax on the profit generated. With a partnership, you will have more than one person or company as owning the business. There may be any number of partners between two and twenty, and in Singapore all the partners have equal rights as far as management of the business is concerned. With a straight up partnership, there is unlimited liability – so all of the partners listed for the business are equally liable for any fines or failure of the business. Some foreigners may be registered as partners but only if at least one is a Singapore resident manager.
The other type of business structure is the limited liability partnership. A limited liability partnership has all of the flexibility of a partnership but it keeps liability for the business away from the partners themselves. The partners involved in a limited liability partnership are getting their personal income from the business profits, and they pay income tax appropriately. The limited liability partnership must also have a local resident manager.
If you are 18 years old or older, you are able to register a business in Singapore, and it is probably interesting to note that the majority of the businesses that are registered are of the limited liability variety. It is the most flexible and least restrictive of the structures available. You must make sure that the name of your prospective business is approved before moving forward with registration and the remaining tasks of getting a business up and running.
As mentioned above, at least one manager, director or partner must be a resident of Singapore. This definition can be solved by that person being a citizen, a permanent resident, or a person who is the carrier of a dependent pass, employment pass, or an entrepreneur pass. It is not required for a partner or director to be a shareholder in the company as well. When it comes to shareholders of a company in Singapore, the limit is 50 and every company, no matter which structure they are operating with, must have a qualified company secretary hired between the registration date and their first 6 month anniversary.
Most companies can be registered in about one or two days – Singapore has reduced the procedures and eliminated most of the red tape that can clog up the works in other countries. The registration process in Singapore is quick and efficient. There are really two main things that you have to remember need to be done when you are getting your company up and running in Singapore: get company registration Singapore. Once you’ve achieved registration of company, that’s all there is to it.