What is A Private Limited Company
A Private Limited Company, also known as a Pte Ltd in Singapore, is one of the most common business entities chosen by entrepreneurs. It is a separate legal entity that provides limited liability protection to its shareholders. This means that the personal assets of shareholders are protected, and their liability is limited to the amount they have invested in the company.
What are The Requirements for Incorporating a Private Limited Company in Singapore
To incorporate a Private Limited Company in Singapore, there are certain requirements that need to be fulfilled. These requirements include:
1. A Shareholder
A Private Limited Company must have a minimum of one shareholder. The shareholder can be an individual or a corporate entity. There is no maximum limit on the number of shareholders.
2. Minimum Paid-Up Capital
The minimum paid-up capital for incorporating a Private Limited Company is SGD $1. However, the amount of paid-up capital should be sufficient to support the intended business activities and initial expenses of the company.
3. A Resident Director
At least one director of the company must be a Singapore resident. This means that the director must be a Singapore citizen, permanent resident, or an Employment Pass holder. The director must be at least 18 years old and must not have any record of bankruptcy or criminal convictions.
4. A Company Secretary
Every Private Limited Company must appoint a qualified company secretary within six months of its incorporation. The company secretary must be a person over 18 years old who is a resident of Singapore.
5. Registered Office Address
The company must have a registered office address in Singapore. This address will be used for official correspondence with government authorities.
Step-by-Step Guide to Incorporate a Private Limited Company
Step 1: Choose a Company Name
Select a unique and meaningful name for your Private Limited Company. The name should comply with the guidelines set by the Accounting and Corporate Regulatory Authority (ACRA) of Singapore.
Step 2: Engage a Professional Firm
Engage the services of a professional firm, such as Swiftly, to assist you with the company incorporation process. They will guide you through the necessary steps and ensure compliance with all legal requirements.
Step 3: Prepare Required Documents
Gather the necessary documents for incorporation, including identification documents of shareholders and directors, proof of registered office address, and a copy of your company’s constitution.
Step 4: Register with ACRA
Submit the required documents to ACRA for company registration. This can be done online through the ACRA website or through your engaged professional firm.
Step 5: Pay the Registration Fee
Pay the registration fee to ACRA. The fee varies depending on the authorized capital of the company.
Step 6: Receive Certificate of Incorporation
Once the registration process is complete, ACRA will issue a Certificate of Incorporation. This document confirms the legal existence of your Private Limited Company.
What to Do After the Incorporation
After successfully incorporating your Private Limited Company, there are several important steps to take:
Appoint an Auditor: If applicable to your business, you will have to appoint your auditor within three months of the company’s incorporation.
Appoint a Corporate Secretary: This person is responsible for administrative duties like drafting and informing the authorities of changes in your company name, structure, or directors.
Set up your Accounting System: This involves setting up a system to record and track financial transactions.
Obtain Necessary Business Licenses: Depending on the nature of your business activities, you may need to obtain specific licenses or permits from relevant government authorities.
Start your Corporate Bank Account: After obtaining the Certificate of Incorporation, you can proceed to open a corporate bank account for your company. This account will be used for business transactions and financial management.
Conclusion
Incorporating a Private Limited Company in Singapore involves fulfilling specific requirements, following a step-by-step process, and complying with legal and regulatory obligations. By understanding and adhering to these guidelines, entrepreneurs can establish a solid business legal foundation.
At Margin Wheeler, we guarantee a hassle-free incorporation journey for your business in Singapore. Experience the excellence of our 5-star quality incorporation service and ensure full ACRA compliance every step of the way. Our team of experts is ready to provide you with professional advice tailored to your needs. Contact us today and make your business incorporation a seamless process.
