How to Register a Business and Apply for Licences in Singapore
This would be a separate legal entity which would similarly allow you to limit your liabilities. If you are a foreign entrepreneur residing in Singapore and wish to start and operate a business here, you can apply for an Entrepreneur Pass (EntrePass) from the Ministry of Manpower (MOM). Eligible foreign entrepreneurs can apply for the EntrePass before incorporating a company with ACRA, or within 6 months after incorporating a company with ACRA. For more information on what businesses are eligible and the application requirements, you can visit MOM’s website here.
Step 4: Submit your business registration application
If you intend to form a business firm with one or more other partners, you may wish to register as a partnership. However, if your business name includes descriptive words before or after your name, such as “Home-Baked Cakes by Lim Ah Kao”, you must register your business. If you plan to start a company in Singapore and are moving there, you can register it with the relevant work visas or do so remotely by appointing a resident director or a nominee director. Your taxable or chargeable income is calculated by adding up your exemptions, incentives, and deductions and then subtracting the total from your income. The corporate secretary of Singapore is responsible for ensuring regulatory compliance and maintaining company records. Whether you’re running an online business or you’re operating locally in Singapore, there are plenty of good reasons to join the thousands of new businesses that are incorporated here each year.
- Note that there are different registration requirements for different business structures.
- Common business structures are Private Limited Companies (similar to Limited Liability Companies in other jurisdictions), Sole Proprietorships, and General Partnerships.
- This also ensures no individuals are personally liable for any debts incurred.
- Applications that need to be referred to another government agency may take 14 to 60 days to be processed and approved.
To customers and suppliers, a registered business provides legitimacy because information about your business can be searched and verified via ACRA. As a result, your business may find it easier to obtain financing and contracting on credit. Your local director may not necessarily partake in all decisions, but they should still satisfy the government requirement such as minimum salary, holding the annual general meeting, and so on.
Additionally, certain businesses also require permits to operate in Singapore. Critically, permits are required for specific goods that businesses may wish to sell. For instance, the importing of goods from overseas requires a government permit that one may apply for via TradeNet. 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 how much does a nonprofit audit cost 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.
If your partners and you wish to limit your liabilities by not being personally liable for the partnership’s debts, then a LLP may be ideal. Similarly, if you carry on business with one or more other individuals, you would be exempted from registration if the name of the firm is the full name of all the individuals. If you intend to carry on your business as an individual under only your full name, you are exempted from registration. You may wish to refer to our other article for a more detailed overview of the obligations an employer owes an employee at law.
Step 1: Decide on a business structure
It is therefore critical that you have in place a well-drafted employment contract that clearly sets out these obligations. Additionally, a general obligation when hiring employees is that you generally owe your employees a duty of trust and confidence. This duty entails not engaging in conduct that undermines the employer-employee relationship.
Singapore Corporate Tax System
When the company is incorporated, Company Secretary can be left blank initially. However, the Company Secretary must be appointed within 6 months of incorporation. A sole proprietorship or general partnership is Singapore’s most basic form how to share information with huffpost of business structure. Simply put, a single individual providing or doing activities can register himself or herself as the owner to become a formal business.
Separately, should you wish to hire foreign workers for your business, you must also obtain work permits for these employees. The permits required for the foreign workers you intend to hire are dependent on the skill level of your workers. For instance, a skilled worker who earns at least $3000 a month requires an “S” pass, whereas other workers may only require a normal work pass. In that respect, do refer to this detailed step-by-step guide for hiring employees in Singapore. Alternatively, you should approach an employment lawyer for further advice. Depending on the type of business and business structure, it usually takes 1 working day.
Taxation and Accounting Obligations Your Business Must Comply With
After the period of registration has expired, your registration will have to be renewed. You can use your flat to run the administrative functions of a business and hire up to cost of goods sold formula two non-resident employees. If the name you have chosen has been used before or is extremely similar to a used business name, ACRA will refuse to register it.