A company is the most ideal business setup for entrepreneurs who have long-term goals and plans due to its perpetual existence. In addition, its existence is separate from its shareholders and directors that it can purchase properties and file a lawsuit under its name.
These are the most common FAQs about Singapore company registration:
1. Question: What are the basic requirements during the registration process?
Answer: There should be at least one resident director, one shareholder, and one qualified secretary; a proposed company name which must be unique; a minimum paid-up capital of S$1; and a registered office address.
2. Q: Who is qualified to be a resident director? Is there's any limit on the number of appointed directors?
A: A resident director may be a natural citizen, permanent resident, or foreigner with Employment Pass, EntrePass, and Dependant Pass who is expected to perform the corporate requirements and compliance matters.
Meanwhile, there is no limit on the number of additional resident directors regardless if they are local or foreign individuals.
3. Q: Is it possible for a foreigner to have a Singapore company without relocating in the country?
A: Yes. As long as he will appoint a resident director in the country. But in case that he has no trusted contact, he can ask a professional firm to provide him a nominee director.
4. Q: How many shareholders are allowed?
A: A Singapore company may be owned by one and up to 50 shareholders. But if it goes into "public," it can invite more than 50 shareholders who can buy shares in the stock market.
Meanwhile, the Singapore Companies Act allows a sole shareholder to be also a director at the same time. But since most banks require at least two signatories, most companies have a minimum of two shareholders.
5. Q: Is 100 percent foreign ownership allowed in Singapore?
A: Yes. However, foreign companies are legally required to appoint at least one resident director.
6. Q: What is the most important requirement imposed to foreign companies and businessmen during the registration process?
A: Since any foreign entities or individuals are prohibited to register their own business, it is a requirement for them to hire the service of a business registration firm or law/accounting firm.
7. Q: What is limited liability and how does it apply to shareholders?
A: Limited liability is a legal arrangement in which the personal assets—such as the savings, cars, and houses—of shareholders cannot be used to pay the unfulfilled financial duties and losses of their company.