Company & Business Registration in Singapore
MAL Management Services is Singapore’s leading provider for company registration services. Whether it’s formation or administration services, MAL provides such services to companies from all sizes from small to big.
Why register your company? There are many reasons. For example, registering your company provides your own personal assets in case of a lawsuit or liability claim. Instead of risking your own personal finances and wealth in such cases, only assets as retaining to the business will be considered during such claims.
In addition, a company registration provides your brand name and business with enhanced credibility. Doing the paperwork shows that you are an established company instead of one that will disappear overnight thus building up confidence within investors and business partners. It also allows you to protect your brand name so that others will not steal it.
In addition, companies that are registered are subject to deductible tax breaks, benefits and other such income bonuses so you earn more money instead of less. This allows you to earn more while having less risks, such as losing your house or car in case of a business liability.
However, company registeration requires many documents and procedures in order to be executed. Don’t be afraid though because that’s where we’re here to help. Our trained professionals are willing to take care of the tedious paperwork, forms and maintenence for you, so all you need to do is concentrate on your other priorities.
Therefore, if you’re looking for a simple, no-hassle way of getting your company registered and other such services, MAL is here to help.
Below are the lists of Company registration / formation services we provide:
Private Limited Companies (Pte Ltd)
A private limited company is separate as a legal entity from its shareholders and “is limited” by shares. As the most common type of business entity to be set up in Singapore, it is recognised as a taxable entity. Therefore, a Singapore private limited company’s shareholders are not liable for its losses and debts past their share capital amount.
- Company Name must be approved before incorporation of company.
- Directors. Minimum of One is necessary. Must be either Singapore Citizen, a Singaporean PR, holder of a Entrepass, Employment Pass, or Dependent Pass
- A Singapore private limited company can have a minimum of 1 and maximum of 50 shareholders.
- A Company Secretary in 6 months of incorporation. This is according to Section 171 of the Singapore Companies Act
- Minimum Paid-up Capital for registration of a Singapore company is S$1 but may be increased at any time
- A local Singapore address must be provided to act as the registered address of the company. This must be a physical address, either residential or commercial
- Singaporean companies enjoy and are subjected to very attractive tax exemptions and benefits
If properly structured, Private Limited Companies are very tax efficient. Hence, this explains its popularity and commonality for most Singaporean companies
Some required key facts to know about Companies
Limited Liability Partnerships (LLP) & Limited Partnerships (LP)
A Limited Partnership is suitable for low risk, low profile businesses. It must have a minimum of at least one active (general) partner and one dormant (limited) partner and requires a minimum of two partners and maximum of 20.
- A partnership must consists of at least 2 members, but can go up to any number. A partner may cease to be one either through willingly exiting through an agreement with a 30 days advance notice or through death. There are no directors, shareholder or secretary like in companies – all partners are involved in running the business
- A partnership in Singapore is considered its own legal entity separate from the legal entities of its owners. Thus a Partnership can own property, sue or be sued by other legal entities. However, each partner in a Partnership is responsible and liable for any of their other partners
- For tax purposes, each partner is taxed according to his own personal income level rather than on an entity level
- Partnerships are mandated by law to propose a name with the acronym LLP in order to identify themselves
- All LLPs are required to have a registered office located in Singapore so as to facilitate communications. It is not required to file or audit accounts and does not need to disclose its capital if there is no need
Limited Liability Partnership on the other hand is suitable for careers such as architects and lawyers. It is a combination partnership setup and private limited company. An LLP combines a separate legal identity like a private limited company with the flexibility of having the owners operate as a partnership. There is no cap on the maximum number of partners, simply a minimum of two partners.
Key facts about Partnership
Sole Proprietorship is simultaneously both the simplest business setup and the riskiest. This is because an SP is owned by one person who is the owner of all assets and liabilities and also the decisive authority belonging to the business. It is most suitable for small businesses that have no/little risks.
- No profit sharing – any and all profit goes to you, the owner of your own SP
- Ease of set up and termination. SP are the easiest business structure to build and deregister
- Smallest compliance requirements – no piles of complicated paperwork to fill up
- Is not considered a seperate legal entity, therefore you are legally/financially responsible for all financial obligations
- Little public perception – an SP is not considered as prestigious as other types of company structures and thusit may be difficult to find people to do business with
- As all assets are drawn from your own personal funds, it can be hard to expand
It is the easiest and cheapest business structure to set up, and also provides the owner with unlimited country over any decision making whatsoever but is very high risk. As a SP, you are considered to have unlimited liability as your business and personal assets are one and the same. As such, debtors are able to access your personal assets if you are unable to meet financial obligations.
Some Pros and Cons of SP
Foreign Company’s Affiliate (branch office, subsidiary, representative office)
Singapore’s policies attract and encourage many overseas businesses and companies to set up shores in the country. There are many different methods of doing so such as branch offices, subsidiary and representative offices.
Branch office: Treated as an extension of a foreign company, the head office is considered completely liable for any acts, losses and debts of its branch office. The parent company and branch office must both share the same name which is subject to approval before registration of the branch office. Like its parent company, branch offices are allowed to conduct any type of business activity that they both share. It is able to repatriate 100% of its earnings and capital.
Subsidiary: Subsidiary companies are private limited companies that is either mostly/completely owned by a parent/holding company. This parent company are usually overseas based (but can be local) and usually holds >50% of the shares in the subsidiary company.
Representative Office: A representative office has no legal status but must still be registered with the local authorities. A Representative Office may not participate in commercial revenue-generating activities such as engaging in trade or entering contracts but they provide foreign companies with an avenue to assess market opportunities in Singapore. This is to help them gain information, market information and feasibility and thus facilitating any long-term decisions and commitments to relocate the business.