Incorporation of A Singapore Company
The formation of a private limited company required certain compliance with the legal requirements in accordance with the Singapore Companies Act Chapter 50.
A private limited company as distinguished from a partnership or a sole-trader, is an incorporated company, which enjoys certain advantages such as separate legal entity ie. the company is itself a separate person from its shareholders; limited in the sense that it has limited liability in that the liability of the company does not extend to its shareholders and perpetual succession in that the death of a member will not affect the continuance of the company. It is on the other hand not allowed to make any public offer of its shares and has restricted rights of transferring of it shares by the shareholders.
In order to form a private limited company, the following requirements must be adhered to:
- The minimum number of member is ONE with a maximum of FIFTY for a private company.
- The minimum issued share capital is ONE (usually $1 each) taken up by a member each.
- The company so formed must have at least ONE Director, one of whom must be an ordinarily resident in Singapore. (i.e. a Singapore Citizen, a Singapore Permanent Resident, a person who has been issued an Employment Pass/Approval-In-Principle letter or a Dependant Pass)
- There must be at least ONE Company Secretary qualified under Section 171(1B) of the Companies Act.
- The company will be subject to Income Tax at a flat rate of 17% w.e.f. YA 2010.
Our cost and disbursement for the formation of a new company will be $1200/- including disbursements and excluding normal secretarial services $720/-.
With regards to employing of foreigners, persons who are neither citizens nor permanent residents will require an employment pass or a professional visit pass; and non-citizens who are not permanent residents, earning more than $2,800 per month will require a work permit under the Employment Act.
For more information of Incorporation a Local Company, you may log on to www.acra.gov.sg.
For further enquiries or a non-obligatory quote, please send us an enquiry.