Frequently asked questions
Incorporation of Company in Singapore
- Proposed company name
- Registered address
- Nature of business (maximum 2)
- Paid up capital
- Director and Shareholder
- Identity Card (IC) copy (for local) and passport copy (for foreigner) of directors and shareholder
- Residential address (proof of address is required, e.g. Phone bill, utility bill. etc)
Company incorporation can be done within few hours for non-complicated case and is subject to Accounting Corporate Regulatory Authority (ACRA) approval.
For foreigner who want to set up a company in Singapore, you need to appoint a local director who must be either a Singapore Citizen or Singapore Permanent Residence (SPR).
A natural person who has attained the age of 18 years and is not disqualified from acting as a director as specified under the Companies Act Chapter 50 is eligible to act as a Director of a Singapore Company.
Singapore Company can be incorporated with a single director. However please note that at least one of the director must be a Singapore local resident (Singapore Citizen or Singapore Permanent Resident).
Yes, it is mandatory to have a Singapore address for your Singapore Registered Company.
Yes, under section 171 of the Companies Act requires a company to appoint a company secretary.
All companies in Singapore must appoint a Company Secretary within six (6) months after its incorporation. Our incorporation packages already inclusive of secretarial services for one (1) year therefore our clients can ensure this mandatory requirement is compliant. Clients can chose to renew our Company Secretary services from 2nd year onward with a moderate retainer fees of $480/- per year.
Paid-up capital is the total amount of capital that invest by shareholders.
The minimum paid-up capital requirement for setting up a company in Singapore is 1 share and $0.10 minimum in any currency. In Singapore usually individual will opt for S$1.00.
Secretarial Related Services
An appointment will be fixed and all the directors in the company will have to visit One Trust office, to sign on all necessary company resolution documents. Kindly bring along your NRIC/Passport copy.
We encourage our clients to provide us the P&L and Balance Sheet at least 1-2 month before the AGM (Annual General Meeting) due date.
It will be 6 months after your financial year end. After its due date, it will incur penalty from ACRA (Accounting and Corporate Regulatory Authority) at $300 per section.
XBRL is only compulsory for limited private company (company with corporate shareholder) or insolvent company. Otherwise, on top of our Annual package fee, you can file XBRL voluntarily with additional fee.
This is the requirement from IRAS. You are require to pay stamp duty fee as long as there is a share transfer.
GST is COMPULSORY and required to register within 30days when the turnover of your business is more than $1 million for the past 12 months OR you are currently making sales and you can reasonably expect the turnover of your business to be more than $1 million for the next 12 months.
IRAS will send a penalty letter to the company for 5% of late filing fee. If penalty is not paid within 60 days, additional of 2% of late filing fee + enforcement action(such as frozen your bank account until you pay, restrict you from leaving Singapore, etc.)will be imposed out.
You may request to pay the tax by instalments from IRAS. IRAS will review your business’ financial situation and advise accordingly and is subject to approval.
No, you are not allowed to charge GST or claim GST if you are not GST register company.
|Without GIRO plan||With GIRO plan for GST payment|
|GST Accounting Period||Filing & Payment Due Date||Filing Due Date||GIRO Deduction on Date|
|Jan-Mar||30 April||30 April||15 May|
The due date for corporate tax filing for Singapore companies is 30 November (for hard copy forms) and 15 December (for e-filing). The company has to file a complete set of returns including Form C, audited/unaudited accounts, and tax computation.
IRAS will impose penalties when they discover errors, omissions and discrepancies and this will depend on the intent of errors whether with intention to evade tax or not and circumstances such as negligence, compliance history, cooperation during audits and commitment for future compliance. Under IRAS Voluntary Disclosure Programme, your penalty may be zero or reduced if meet the conditions.
For the first 3 years, you are liable to pay tax for net profit more than S$100,000 at 17% company tax rate. After 3 years, it will be 17% of the net profit.
All newly incorporated company must fix a financial year end (FYE). In Singapore you have the option of choosing your FYE within 18 months of your company’s incorporation date. However, is best that you keep your account within 12 months, so that you can fully utilize the 3 years tax exemption benefit from IRAS (Inland Revenue Authority Of Singapore).
It is a formal records of the financial activities and position of a business and consist of a statement of financial position (Balance Sheet), statement of comprehensive income (Profit & Loss), statement of equity, a cash flow statement and it may also includes footnotes to the financial statements and management discussion and analysis.
Profit & loss contained company sales/revenue/income. Expenses can be purchase of goods, transportation, salaries, utilities, etc.
Balance sheet (company’s assets & liabilities) contained trade debtors, trade creditors, cash & bank balances, fixed assets, eg: office equipment, renovation, etc.
Depends on your needs, if your nature of business requires your management accounts to make sound business decision or regulatory reporting like GST, we strongly encourage you to do a monthly book keeping because the quarterly book keeping will be too rushed to avoid any delay and perform quality review.