To open a business in Singapore, the first thing you need to do is to settle on the type of business entity. Sole Proprietorship is a one-person company. It is the ownership of an individual, and they will be liable for the debts and loss. However, they will also make all the profit.
A Partnership operates as a sole proprietorship, but there are multiple owners. The maximum number of partners in a Singapore partnership is 20. In a limited partnership, some partners do not make as many investments and contributions as others, so they can take lesser profit.
Finally, a Private Limited Company stands as a separate legal entity. It isn’t anyone’s ownership. Instead, the company has shares, which can be distributed between 1 to 50 shareholders. International Investors will need to open a Private Limited Company in Singapore.
A Private Limited company is the recommended firm for most SMEs because of its benefits such as protection of personal funds and the opportunity for growth.
Choosing the Name of Your Company
These are the conditions for naming a business firm in Singapore:
- The name should not be too similar to other businesses in the city-state.
- The name cannot be vulgar or inappropriate.
You can work with a business advisor who can help you decide the name and the type of your company depending on the activities and the availability of funds.
What are the Requirements for Opening a Company in Singapore?
Sole Proprietorship and Partnership do not have any special requirements. You just need to have the available funds and register for licenses and taxes. For a Private Limited Company, you must fulfil these terms:
- The company should have a resident director.
- There should be at least one shareholder.
- There should be at least one resident secretary.
- There should be a registered address. The address should be a real physical address and not just a PO Box Number.
- Annual audits should be done, and Annual General Meetings should be held.
By the way, you can take help from the Top accounting firm to register a company in Singapore. They can assist you in outsourcing essential services such as secretarial and nominee directors which you will need to incorporate your business.