FAQs Related to Company Incorporation in Singapore

Company secretarial services in Singapore

#1 What is paid-up capital?


Paid-up capital is the portion of a company’s equity that has been funded by shareholders. Paid-up capital represents the total amount of money that shareholders have invested in a company. 


It is important to note that paid-up capital is different from authorized capital, which is the maximum number of shares that a company can issue. 


Paid-up capital is also different from authorized share capital, which is the portion of authorized capital that has been issued to shareholders.


#2 What are the paid-up capital requirements for companies in Singapore?


According to the Companies Act in Singapore, the paid-up capital requirements for companies differ depending on the type of company. 


For private companies, the minimum paid-up capital is S$50,000, while for public companies, the minimum paid-up capital is S$5 million.


There are also different requirements for exempt private companies and foreign companies. Exempt private companies must have a minimum paid-up capital of S$1, and foreign companies must have a minimum paid-up capital of S$2.5 million.


#3 How long must I keep the company’s accounting records in Singapore?


A company’s accounting records in Singapore must be kept for a minimum of five years, according to the Companies Act. 


This applies to all types of records, including ledgers, journals, and receipts.


The records must be kept at the company’s registered office, or another location approved by the Registrar of Companies. As a business owner, you must hire a professional accounting firm in Singapore so that you don’t have to worry about accounting matters anymore.


#4 Does a company in Singapore require a local director?


A company in Singapore is required to have a local director on its board of directors, as stipulated in the Companies Act. 


This is to ensure that the company is managed and operated in a responsible manner, in the best interests of its shareholders and stakeholders.


The local director must be a natural person who is ordinarily resident in Singapore and must possess the necessary skills, experience, and knowledge to discharge his or her duties effectively.


#5 How much time does it take to incorporate a company in Singapore?


Incorporating a company in Singapore generally takes from one day to a few weeks. 


The first step is to apply to the Registrar of Companies, which must include the proposed company name, the names and addresses of the directors and shareholders, and the company’s registered address.


Once the application is approved, you will need to complete several documents, including the Constitution of the Company and the Shareholders’ Agreement. Finally, you will need to pay the incorporation fee and submit all the required documents to the Registrar of Companies.


Recommended post: Important Determinants of Company Incorporation Costs in Singapore


#6 Who provides company incorporation services in Singapore?


There are many business consultants in Singapore that provide professional services for business incorporation in Singapore. 


These business consultants can help you with the paperwork and procedures involved in incorporating your business in Singapore. They can also provide advice on the best business structure for your company and help you with the process of setting up a bank account and registering your business with the government.


Are you looking for efficient yet affordable business incorporation services in Singapore? Hire PL Biz Consulting firm.

#7 What are the norms for naming a company in Singapore?


There are a few things to keep in mind when naming a company in Singapore. 


First, the name should be unique and not already in use by another company. 


Second, it is important to avoid any offensive or inappropriate connotations. 


Finally, the name should be easy to pronounce and spell for both locals and foreigners. With these things in mind, you should be able to come up with a great name for your company that will help it stand out from the rest. 


Recommended post: Corporate Secretarial Services in Singapore: Trends & Predictions


#8 What’s the minimum age requirement for directors & shareholders of a Singapore company


In Singapore, the minimum age requirement for directors and shareholders of a company is 21 years old. This is in line with the minimum age requirement for other business entities such as sole proprietorships and partnerships. 


The rationale behind this age requirement is that directors and shareholders are key decision-makers within a company, and therefore should be of legal age.


This ensures that they can make sound decisions that are in the best interests of the company.


Recommended post: All that you need to know about incorporating a company in Singapore

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ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

The Accounting and Corporate Regulatory Authority (ACRA) had cancelled the registrations of filing agent (RFA) and qualified individual (RQI) on 18 January 2024. The registrations were cancelled in view of breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015 (the “ACRA Regulations”).

Some of the basic AMT/CFT controls that a RFA and RQI are required to exercise are as follows:

(a) perform additional customer due diligence measures when a customer is not physically present during onboarding;

(b) inquiring if there exists any beneficial owner in relation to some of its customers; and

(c) perform risk assessments i

RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism. RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled.

Therefore, RQIs and RFAs play an important role in helping to detect and combat illicit activities.

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