If you are thinking of incorporating your business in Singapore, then there are a few things that you need to do. In this article we will discuss the steps that should be taken after your company incorporation is complete.
For example, after the incorporation of your company, you will need to complete a few more tasks before you can begin operating your new company or business. Setting up statutory books, purchasing a company seal, and registering for taxes and other licenses are just a few of the regulatory tasks you’ll have to complete. Some tasks, on the other hand, are related to the essentials of starting a business, such as setting up an office, opening a business bank account, and obtaining business insurance.
At first glance, completing these tasks may appear daunting and complicated, particularly if you are a new entrepreneur. However, in Singapore, these tasks are generally simple, and as long as you have the necessary documentation, you can complete them quickly. In addition, you have the option of hiring a professional corporate services firm to guide you through these tasks.
The following is a list of some of the tasks that should be completed within the first six months.
Table of Contents:
1. Decide on your company’s Financial Year End
You will be required to file various annual reports with IRAS and the Accounting and Corporate Regulatory Authority on a yearly basis. The dates and deadlines for filing these reports will be determined by your company’s financial year end (FYE).
Your FYE will have a direct impact on the following tasks:
- Filing Estimated Chargeable Income (ECI),
- Submitting Annual reports, and
- Holding the Annual General Meeting.
You may select any date for your FYE. Some of the more popular choices for many businesses in Singapore are
- 31st of March,
- 30th of June,
- 30th of September,
- 31st of December (most common).
You will select your FYE on the same day you incorporate with us. We will advise you on the most appropriate FYE for your company taking into consideration the corporate tax exemptions and benefits your company may be eligible for.
2. Appoint an Auditor
An auditor is a public accountant or an ACRA-approved accounting firm who is in charge of your company’s reporting standards.
Depending on the type of business or company you will be operating, you will be required to appoint an auditor within the first three months of incorporation.
You will not be required to appoint an auditor if:
- Your company’s total annual revenue does not exceed S$10 million.
- Your company’s total assets within your FYE do not exceed S$10 million.
- Your total number of full-time employees does not exceed 50 at the end of your FYE.
Most companies do not need to complete this stage because they often meet all three of the parameters listed above. This also means that most companies are not required to do an annual audit.
3. Appoint a Corporate Secretary
A corporate secretary is in charge of administrative tasks like drafting and notifying authorities of changes to your company’s name, structure, or board of directors. They will also file any paperwork that the Singapore authorities require. When the annual filing and Annual General Meeting (AGM) are due, the company secretary must notify the directors and shareholders.
A corporate secretary must be appointed within 6 months of the company’s incorporation.
A company secretary must be either a:
- Singapore resident (a Singapore citizen or permanent resident)
- Holder of Singapore Employment Pass / EntrePass / Dependant Pass
4. Issue Share Certificates
The Share Certificate is a legally enforceable document that certifies a shareholder’s ownership in the number of shares issued by a firm. It might be issued with or without the common seal of the company.
You’ll need to keep track of how many shares you’ve issued in total, how many you’ve issued to your shareholders, and how many you’ve kept as the company’s owner. This data will be needed in the future for a variety of financing purposes.
5. Set Up Your Statutory Books
Statutory books are the legal records of your company and should be stored at your registered office in Singapore. Because this is a public record that can be requested by authorities at any moment, it must be updated on a regular basis in case an official from IRAS or ACRA comes down to inspect.
The following information should be included in your company’s statutory books:
- Up-to-date information about your company’s officers including your auditors, directors and secretaries. The dates of appointments and resignations should also be included.
- A list of your shareholders, including how many shares they own and any recent stock transactions.
- Information on fixed or floating charges and debentures used to secure any loan made by the company.
- Annual General Meeting minutes and information on any resolutions adopted.
It is the responsibility of your company secretary to compile and maintain the firm’s statutory books.
6. Set Up Your Accounting System
It is critical to keep account of all expenses and profits from the day your Singapore company is registered. This allows you to be informed about the company’s financial status and the profitability of your business while also following Singapore’s tax requirements.
Make sure you stay on top of things to avoid being penalised with tax evasion penalties, as it is required by law to keep your accounting books up to date following the Singapore Accounting Standards.
7. Apply for Business Licenses
Depending on the kind of company, you may or may not be required to apply for a business license before commencing with operations. Some companies that are required to get a license include:
- Clubs and bars
- food and beverage establishments
- private education / educational establishments
- telecommunication-related businesses
- infocomm-related businesses
- manufacturing plants
For an indicative list, click here.
8. Open a Corporate Bank Account
To open a corporate bank account, you must submit the bank with your company’s certificate of incorporation, constitution, copies of the board resolution authorising the opening of a bank account, and proof of the beneficiaries’ identities.
When opening a corporate account, most banks will require the physical presence of the account signatories, as well as at least two business directors, or one secretary and one director.
Your shareholders must deposit their investment share capital into your business bank account once it has been effectively established.
The work of expanding your company has only just begun. Setting up your business entails a significant amount of administrative work. You don’t have to do everything by yourself if you want to jump right into growing your business.
Do you require assistance in completing all of these steps? Engage us for our secretarial services for businesses.
Maintain compliance with Singapore’s statutory regulations.
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