Setting up a company in Singapore and further Registration in the country varies with the types of companies we can set up. Moreover, it also depends upon the different types of company registration policies. In this article, we will briefly discuss the types of company registration in Singapore and their formalities.
Registering a company in Singapore can be intimidating at times. However, if we know the necessary registration requirements in the country, then it can be an easy task. You Can get Company Registration in Singapore Online With Our Experts Panel!
Most importantly, the types of companies you want to register are another essential factor influencing the types of company registration in Singapore. But before we know about the types of company registration, let us learn about the different business entities available in Singapore.
Types of Company Registration in Singapore
There are five different business entities in Singapore. The types of company registration for the same entities differ based on these different entities. Let us learn about each entity in detail:
1. Sole proprietorship
The first type of entity that can be found in Singapore is the sole proprietorship. It is a type of business that a single person owns. Moreover, the sole owner has more authority in running the business.
The eligibility criteria for having a sole proprietorship of a company are that the proprietor should either be a citizen of Singapore or a person who has an employment pass from the government of Singapore. These entities are low-risk businesses that an individual can run. These types of companies don’t have a separate legal entity, and the owner has limited liability and ownership rights of the company.
Registration formalities
- The sole proprietorship companies are quick to set up.
- The administration process for the company is easy.
- It comes with minimal registration cost.
- The registration of the company can be renewed annually.
2. Ordinary business partnership
Another type of business entity in Singapore, based on which types of Company registration in Singapore can be done, is the Ordinary business partnership. This type of business entity can have two to twenty partners.
Further, two of the partners who are citizens of Singapore are eligible to open this entity. These entities are highly suitable for professional firms like accountants, lawyers, etc. they also don’t have separate legal entities. Partners have unlimited liability. Since it’s a partnered firm, nobody can own the property in the firm’s name.
Formalities for Registration
- Ordinary business partnership firms are easy and quick to set up.
- They are convenient to administer.
- These types of firms come with cost-efficient registration.
- The registration for the firm can be renewed annually.
3. Limited partnership (LP)
The following business entity commonly found in Singapore is the Limited partnership firm. Per the company policies, these companies will have two or more partners wherein one individual will be the general partner, and the other will be the limited partner. Any foreigner or citizen of Singapore can set up the firm. This entity type is suitable for one partner ready to take risks. Similar to ordinary partnership firms and sole proprietorship companies, limited partnership companies don’t have a separate legal status. Further, the general partner has unlimited liability and limited partners have limited liability. These firms cannot own a property in the company’s name.
Registration formalities
- The limited partnership companies can be set up quickly.
- They are convenient to administer.
- It consists of a low registration fee.
- The registration for these types of firms can be renewed annually.
4. Limited liability partnership (LLP)
The LLP firm in Singapore is a partnership firm where the liabilities of the partners are limited, and the number of partners they can have is unlimited.
Any foreigner or an individual with Singapore citizenship can set up the company. These firms are suitable for individuals working in partnerships who are taxed at their tax and are not eligible for any tax exemptions. These types of companies have separate legal entities. Moreover, the partners can own property in the name of LLP. The partners are liable for losses incurred by their actions and not by the actions of other partners.
Formalities for Registration
- LLP firms are easy to set up.
- The administration of the company is also easy.
- Unlike other types of firms, LLP has only one-time registration costs.
- In case of the annual renewal of the registration of the company, the managers of the company should give the declaration.
5. Private Company Limited by Shares.
A private company limited by shares is another type registered under chapter 50 of the companies act. As per the act, private companies can only have 50 members, and public companies can have more than 50 members. This type of company can be set up by either a foreigner or a citizen of Singapore.
They are suitable for advanced and flexible entities. Further, they have separate legal statuses. Members of the company have only limited liabilities. The member can own property in the name of the company.
Company Registration in Singapore Formalities
- Private companies limited by shares are very costly to set up.
- The administration of the company requires various formalities. For instance, the company secretary of the firm is responsible for efficient administration, and they should be hired within six months of the company’s incorporation.
- The registration cost of the private company is limited by shares handled by the auditor hired within three months of the company’s incorporation.
Thus, you should know these types of companies and their registration formalities in Singapore in detail. It will help you know how to incorporate your company in Singapore and further with its registration process.
Conclusion:-
Overall, setting up a firm and registering the same can be a challenging task. But if we know the type of company we are planning to set up and the registration formalities required for the same, then establishing your company in Singapore and further registering the same can be a quick process.
Moreover, the business-friendly government of Singapore will also help you establish your business quickly and effectively. Further, they will also provide you with incentives. Finally, a stable government and political solid system help offer your business a foreseeable future in Singapore.
Hiring a dedicated team of professionals from legal firms like Vakilsearch will help you incorporate your company in Singapore. Further, they also provide post-incorporating services like FEMA, taxation, and other regulatory services.
So, next time you plan to incorporate your business in Singapore, know the types of company registration in Singapore and understand their registration formalities. Further, hire professionals from legal firms like Vakilsearch for easy navigation and business incorporation in Singapore. Moreover, you can enjoy the benefits of the registration of companies in Singapore.
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