4 Things To Avoid When Incorporating Your Company In Singapore
Today, Singapore is considered one of the best countries to start a business. Multinational companies who decided to move their headquarters or establish a branch in the Lion City enjoy a competitive tax system, a politically and economically stable environment, and a strong pool of local and international talent that are helping these companies solidify their presence in the Asian region. Another reason is that it is quite easy to set up a business in Singapore, thanks to the simple procedures in company incorporation.
While putting up a business in Singapore is a breeze, new companies need to be wary, of course, of the pitfalls that they may encounter during the process. No matter how hassle-free the process is, mistakes are inevitable. This is why most new companies are opting for the services of a Singapore company incorporation firm to make the formation of their business in the Lion City easy and more convenient. We’ll explain more about this later.
If you’re keen on starting a business in Singapore, it helps to know the key things to avoid when incorporating your company.
1. Picking a not-so-good business name
A good business name is everything. It mirrors what you are as a company and the business you are involved in. Having a business name that reflects your company’s personality is important so that you will be able to benefit from the business strategies and branding efforts you will embark on in the future.
When coming up with a business name, make sure it is unique and not similar to any existing company’s business name. Check with the Accounting and Corporate Regulatory Authority (ACRA) if the business name you chose is available to use.
2. Late incorporation
You know what they say: The early bird catches the worm. The same goes for incorporating your company early in Singapore. By incorporating your business right away, you get to protect the name you’ve chosen for your company as well as establish your ownership of assets without anyone staking a claim against you. Moreover, you get to set a heftier equity stake for yourself before the company becomes profitable and successful, during which more parties will be sharing in the equity stake.
3. Choosing the wrong business structure
Selecting the fitting business structure for your company cannot be done in random. You have to determine the specific type of legal entity that suits your business in order to know the rules and regulations that apply to your company and the perks and benefits that your company is entitled to (e.g., tax discounts).
In Singapore, you can choose from the following business structures that is most appropriate for your company: sole proprietorship, partnership, limited liability partnership, or private limited company. For foreigners registering a company in Singapore, it is important to explore all the available options carefully when choosing the right business structure, as choosing the wrong one may have legal and financial ramifications.
4. Late appointment of a company secretary
New companies, no matter the type of business, are required by law (under Section 171 of the Singapore Companies Act) to immediately assign a company secretary. Appointment of company secretary should be undertaken within six months of the company’s incorporation.
The law requires as well that the company secretary is a resident of Singapore and is well-equipped (meaning, has all the qualifications and experience necessary to execute the job) to handle the position. Such strict requirements should be fulfilled because the company secretary acts as a compliance officer, which means the person who is appointed to this position will be handling all the compliance requirements that the company should meet in accordance to the law.
Avoid These Blunders By Engaging The Services Of A Singapore Company Incorporation Firm
More and more companies are seeking the assistance of a Singapore incorporation services firm when incorporating a business. Sure, all these mistakes can be avoided if you have a keen eye for detail, but there’s so much more that a professional services provider can do for you during company incorporation.
First, Singapore company incorporation services firms possess a highly qualified and trained staff who is experienced in the field of company formation. They are experts in this area as they have years of experience in incorporating a wide variety of companies through the years. This means you can benefit from the knowledge and expertise they can provide when you’re incorporating your own company.
Second, a Singapore company incorporation firm can do all the paperwork for you. Accomplishing all the documents that need to be filed can be a lot of work, which means a lot of time should be spent, too, in completing all the requirements. Hiring a local firm to do this saves you time and effort, allowing you to focus more on coming up with business strategies that you need to roll out in the coming days once your business starts.
Third, Singapore incorporation services firms are always updated with the rules and regulations of putting up a business. If you let one handle your company incorporation, you don’t need to worry about any compliance issues because you can rest assured that all your compliance requirements are met accurately and timely.
Fourth, a Singapore incorporation services firm can provide you with a highly trained and experienced company secretary. These local firms often provide corporate secretarial services that companies can take advantage of to ensure efficient handling of administrative and compliance requirements.
Lastly, most Singapore incorporation services companies offer business financial services. This means that post-incorporation, you can let them handle other business functions that you would want to be handled with ease and efficiency, such as payroll, accounting, and taxation.
With a Singapore company incorporation firm helping you during the crucial stages of your company formation, you can start your business in the Lion City quickly but with efficiency. You can avoid committing the mistakes that can hinder you from setting up a Singapore company that can be lucrative and successful in the future.
Resource links:
https://www.techinasia.com/guide-legal-matters-launching-startup-singapore
