Private limited company in Singapore – Company Shares

The following article presents how to set up a private company in Singapore where this article also shows about how to open the company through shares for a private company.

Opening a company in Singapore:

In Singapore, in order to open a company it is required to register under the Accounting and Corporate Regulatory Authority (ACRA). The company should abide by the rules and regulations of the law. This registration should be done for all types of companies. There are 5 types companies in Singapore which are Sole Proprietorship, Partnership, Company, Limited Liability Partnership and Limited Partnership. 
Singapore is a good company to open since the country is limited by shares since it has a separate legal entity for shareholders. It is known to be taxable with their own right. Companies in Singapore as a result for shareholders are not liable for debts and losses since the amount is more than their share capital.

Private limited company in Singapore:

 A private limited company is a company which is limited with shares and who as a separate entity for their shareholders. This type of companies is meant to be taxable entity according to their company where the shareholders will in the private limited company (PLC) will not take liability for the company’s debts and losses apart from the share capital amount. 

Procedure to register a PLC:

  • It is mandatory to have at least minimum 1 shareholder
  • 1 director who is a resident of Malaysia
  • 1 company secretary
  • 1 paid-up capital
  • 1 registered address

Documents required for PLC:

Company Name: It is very important to choose a company name. it is recommended to include the functions of the company through the name of the company. Through the name of the company it should be understood that what type is service and product is provided by the exhibited business. it should be sure that the name is unique and should not be taken by any other company. the company name needs to be attractive, unique and suitable according to the business. It should also be known that the company chosen must be going with .sg, .com, .org or any other extensions which is to be required in the company market.

Details of Business Activities: The activities such as;
  • Shareholding pattern
  • Shareholders agreement
  • Details of shareholders
  • Details of directors
  • Registered address
  • Company Secretaries particulars
  • Memorandum and Articles of Association (MAA)
  • Appoint an auditor
  • Company business profile
  • Incorporation certificate
  • Share certificate
  • First board resolution
  • Bank account opening resolution
  • Company seal
  • Company stamp
  • Annual general meeting (AGM)
  • Annual returns
  • Tax filing
  • Fiscal year determination

Innovation and Capability Voucher (ICV):  Companies under ICV which mean Innovation and Capability Voucher scheme is a voucher that costs around $5,000 for professional consultancy services, hardware and technical solutions. The conditions for being eligible to buy the voucher is that it the company should be physically present and registered in Singapore. In this condition at least 30% should be allocated to the local shareholding and group annual sales for S$ 100 million or employment size for not more than 200 workers. The main key point is that all purchases must be done only after the approval of indicated items have been approved in ICV application.

Opening a Corporate Bank Account in Singapore: It is important to choose a proper bank while opening a Company in Singapore. It is important to choose what type of bank account is needed to open for the newly opened business. It must be understood that for each type of bank account there are different procedures and the durations taken for it also differs according to the bank account. In some banks they offer waiver period which is offered for bank charges for any banking charges like depositing, withdrawing cash and checking the status of account. In order to open a bank account, it is generally to be resolution by the company’s board of directors. In order to open the bank account, it is required to exhibit NIC, passport, residential address proof, all company directors address addresses and beneficial owners.

Requirements of a private company by shares:

Here are a small brief about Singapore company shares, it’s important to know when opening a company in Singapore:

Directors:
Having 1 director is fine when the private company is opened with shares. When the board of directors are more than a member then at least there should be 1 director should be a resident of Singapore. There are high chances that the company articles can also state that there can be more than 1 director who can be a resident of Singapore. Therefore, there can be any number of members who can be a resident of Singapore.

Shareholders:
A person who has shares in the company can be a subscriber of the shares. The subscriber can be a natural person who can also be present in the corporation. Even foreigners can be a shareholder in the company.

Registered Office:
The office registered in Singapore should be physically present. This is in order to keep statutory reports and accept any service in the documents. The main purpose of the registered office is for accountants, lawyers and chartered securities.

Company Secretary:
In every business in a new company it is always recommended to have a company secretary who must be the resident of the country itself.

Share Capital:
Every company should always open with a share capital. When the company is operated accordingly, automatically the bank account is opened. According to the company requirements the share capital can slowly increase.