What Type Of New Business You Can Register In Singapore?

Singapore has been attracting foreign companies regularly. The strategic location of the country has given it the position of being the regional hub for business in this area. Companies from various countries come to Singapore to exploit the excellent business opportunities here. The country proves to be an excellent place for expanding their business. As there is good encouragement from the government the foreign companies are enthusiastic about setting up their operations in Singapore.

The Company Incorporation Process in Singapore

The company incorporation process starts with finalizing what type of company the foreign entity wants to start in Singapore. Before you register new company in Singapore you must decide what company constitution you want to have. The Singapore government allows three types of companies to be formed by foreign companies. These are the branch office, representative office, and the subsidiary company. Each of these has different requirements and terms of operation. Foreign companies must take the help of a consultant to get their Singapore office registered and the consultants can help them decide which is most suited for their operation.

Types of Companies in Singapore

As far as a foreign company is considered the most basic form of company is the representative office. This type of company cannot conduct any commercial business in Singapore. They are only meant for an exploratory purpose. The office is set up to do a market study of the potential available in Singapore. The company can study the possibility of opening an office in Singapore and earning from it.

The second type of company is a branch office. The branch office can conduct trading or commercial activities in Singapore. But the office is not a separate legal entity and should carry the same name as the parent company. The branch office must employ two local people for the working of the office in Singapore. Any liability or other legal issues will extend to the parent company.

The third type of company is most preferred and is called the subsidiary company. This is a separate legal entity and can indulge in all business activities that a local private limited company can conduct. The losses, debts or other liabilities of the company will not be applicable to the parent company. The company can register a separate name more suited to the Singapore market. The subsidiary company can be fully owned by the Singapore parent company or individuals.

Conditions for Opening New Company in Singapore

When a foreign company wants to do a new business registration in Singapore as a subsidiary company there are some conditions that have to be fulfilled. These conditions are set by the ACRA and only by abiding by these the company can be incorporated. The corporate consultants can help you in making you familiar with these conditions.

The company must have at least one shareholder, one director, and one company secretary. It must also have a registered office. While the director, shareholder and registered office are immediate requirements, the company secretary can be appointed within six months of the incorporation of the company.

The director of the company can be one of the shareholders but if there is only one shareholder, he or she cannot be the director. The director has to be a resident of Singapore. A foreigner with an employment pass can also become the director of the company. The company secretary must also be a resident of Singapore and familiar with the local laws. The person is responsible for running the company within the legal framework. Handing over the incorporation to the consultants will be best for you to comply with all the rules.