Guidelines For Proper Company Formation

Company formation in Singapore is popular because of many reasons. Since it is a modern country with supreme infrastructure and technologically advanced telecoms and internet industry, it is rightfully a superb destination for business proprietors.

There are some policies to follow if you plan to mount your company in Singapore. Be guided by the Companies Act (CAP 50 of the 1994 Revised Edition of the Singapore Statutes) which, in general, is anchored on principles founded in England.

There are basically 3 common kinds of commercial company units, i.e., private limited company, limited liability partnership and sole proprietorship. The most common type is the private limited company, on which the guidelines below are focused.

These are the essential legal requirements for company formation in Singapore: (1) At the least one shareowner who can be either be a local or foreign person; (2) At the least one director who should be a natural individual At the least 18 years old; (3) Minimum paid-up capital of S$1; (4) Local registered address; (5) Skilled company secretary to be hired within 6 months of incorporation; (6) Approved company name that is specific and free of offending words; and (7) Validated licenses and permits for specific business enterprises like private schools, child care and video companies.

It is allowed that the shareowner and the director are one and the same. Even so, to ascertain more efficient administering of documents for company formation, it is best to have at least 2 directors because banking companies and other financial institutions normally demand 2 signatories.

For proper company formation with regard to the private limited type of business, it is essential that the director has good credit standing and abides to the foregoing criteria: (1) A Singaporean citizen; (2) A Singaporean permanent resident; (3) An Employee Pass holder; (4) An Approval-In-Principal Employment Pass bearer; and (5) A Dependant Pass holder.

There are situations where there is a need to hire the services of a consultancy firm for your company formation undertaking. It is needed of foreigners to engage the assistance from professional consultancy firms. Local residents of Singapore may opt for self-incorporation, wherein the directors, secretary and shareholders must all be either Singapore citizens or permanent residents.

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