What is LLC registration in Singapore?
LLC is the abbreviation for Limited Liability Company or Limited Liability Corporation. Limited Liability Registration in Singapore is required for an individual to start a corporate business. Before starting a business in Singapore, one of the crucial areas which have to be analyzed is which form of business structure would be best suited for the needs of your business, Different business entities in Singapore offer benefits. Hence, it would be advisable for your business to consider all possible alternatives for registering your business in Singapore. Different factors would affect the decision of choosing the form of business in Singapore. Limited Liability Company is registered under the Companies Act of Singapore. The LLC is a company limited to a specific quantity of shares.
Types of LLC Registration in Singapore
Limited Liability Company registration procedure is a straightforward process. However, the entrepreneur must consider all the advantages and disadvantages of different entities before going ahead with registration. Types of companies under LLC registration in Singapore:
Private Limited Company
A private limited company is an entity that does not have its shares registered in a public stock exchange. This means the shares of the private limited company are not offered to the public. The maximum number of shares which can be held by members is 50. These shares are not offered to the public. A company formed as a private limited company will have the symbols Pte Ltd or the word Private Limited at the end. Members of the private limited company can either be individuals or corporate entities.
Public Limited Company
From the name, it is understood that a public limited company offers shares to the public. The shares of a public limited company are listed in a public stock exchange. A public limited company has to follow more norms related to rules and regulations. The minimum amount of shareholders or members for a public limited company is 50. Usually, multinational corporations prefer the corporate structure of a public limited company.
Public Limited Company (Limited by Guarantee)
A public limited company limited by guarantee is an organization that is formed not for carrying out business. Such an organization is called a nonprofit organization. This form of LLC cannot list its shares in any stock exchange.
Which is the most preferred LLC by Investors in Singapore?
When it comes to LLC registration in Singapore, then investors must choose the private limited company structure. The following factors are taken into consideration.
A private company has a separate legal entity that is distinguishable from the owners and shareholders. Hence, if there is any form of legal suit filed against the company, the shareholders and directors will not be liable.
Liability is Limited
The liability of the corporate shareholders and directors is limited to the shares owned by them. Creditors cannot go after their assets. Hence, by forming the above structure, the shareholders can enjoy the limited liability status.
When a company is formed, it can exist indefinitely. Succession means that the company can exist without any form of control from the shareholders and the directors.
Ownership of this form of entity can be transferred easily from one individual to another individual. The transfer can be carried out easily without any legal formalities and limited documentation.
Singapore offers a tax-friendly atmosphere for the incorporation of companies. The current tax regime for a private limited company is the following:
- For companies who have profits up to the value of SGD 300,000 is 9%; and
- For companies that have profits of more than SGD 300,000 is 17%.
Apart from this, there is no form of capital gains tax which is chargeable on the property owned by the company.
A private limited company has a credible image when compared to a partnership business or a sole proprietorship business. Investors are more likely to invest in a private limited company business than other business forms.
Therefore LLC registration in Singapore as a private limited company would attract the above advantages compared to other structures.
Who Regulates LLC Registration in Singapore
The main regulatory authority for LLC registration in Singapore is the Accounting and Corporate Regulatory Authority (ACRA). All forms of business, as well as company registrations in Singapore, are carried out through this authority. The law that regulates LLC registration in Singapore is the Companies Act. Chapter 50 of the Singapore Companies Act. The ACRA acts as a registrar for forming a company in Singapore.
Eligibility criteria for LLC Registration in Singapore
The following criteria have to be adhered for LLC registration in Singapore (Private Limited Company or Pte Ltd).
The name of the company in Singapore, must be unique and not previously used. The company name must be according to the requirements of the ACRA and approved by the same.
A private company (LLC registration in Singapore) must have minimum directors. The director has to be a resident of Singapore, permanent resident of Singapore, or an entrepreneur in Singapore.
Minimum number of Shareholders
The number of shareholders for a private company in Singapore is one, and the maximum is 50. This must be differentiated from a public company that has to have a minimum of 50 shareholders.
Registered Office and Address
The Company must have a physical office and registered address for business correspondence purposes.
Company Secretary Executive
When the company is registered, a company secretary must be recruited to carry out its affairs. The company secretary will be responsible for carrying out the formalities such as the board meeting, conducting the minutes of the meeting, and filing formalities with the ACRA.
Without any form of capital, a company cannot exist. Hence, the private company investors are required to subscribe to some form of initial capital for the business. The minimum required paid-up capital for a private limited company is SGD 1 (Singapore Dollar).
Foreign Individual Investment
Foreigners are not permitted to start a private limited company in their name. A foreigner can either recruit a local director or a Singapore resident director to carry out its operations. Apart from this, the foreigner can appoint a registered agent who is licensed to carry out filing applications with the ACRA.
Procedure for LLC Registration in Singapore (Private Limited Company Registration)
LLC registration in Singapore is a straightforward process. As long as the individual in Singapore has the required documents, and follows the appropriate procedure, the company can be seamlessly registered. The following procedure has required for LLC registration in Singapore.
Approval from ACRA
As long as the applicant for LLC registration in Singapore satisfies the eligiblity criteria, an application for registering the above can be made to the ACRA. In the above process, the first step is securing the approval of name from the ACRA. The following points have to be kept in mind while seeking name approval from the ACRA:
- The company name has to be unique and not previously used.
- The company name has to not go against any provisions of law or intellectual property.
- Any form of vulgar terms must not be used in the name of the company.
- The name of the company should not have any issue with intellectual property law provisions, such as the Trademarks Act, Copyright Law, and respective regulations.
- If the company has the following phrases in the name, then approval from the higher authority is required. The following phrases are: "Media", " Finance", " Bank", and “Education”.
- The web portal known as Bizfile is used to file the name search of the company. The process of name search must be under the provisions of the ACRA.
If the ACRA approves the name of the company, it is reserved for 60 days. The reservation of the company name is from the date of making the application for the company name. A company cannot be incorporated within 60 days. An application has to be made to the ACRA to extend the period for another 60 days.
Prepare Documentation for Submission
After securing approval from the ACRA, the applicant must prepare the required documents for submission. The following documents have to be submitted to ACRA:
- A document stating the name of the company as approved by the ACRA.
- Business Activities that are carried out by the applicant.
- Registered Address and Location of the Premises of the Business.
- Information on the Shareholders and Directors of the business.
- Information on the appointment of the Company Secretary of the Business.
- If the applicant is from another country, then details of the passport and address proof are required. The foreign applicant must provide information on the registered agent or Singapore Director.
- Apart from this, information on the Memorandum of Association and Articles of Association must also be provided.
- Residents of Singapore must submit a copy of the resident card or the resident status.
Submit the application to the ACRA-
After the applicant fulfills the criteria, the application must be submitted to the ACRA. The ACRA will review the application. Once the process is complete, the applicant will be intimated about the outcome. If the company is registered, the applicant would be intimated online regarding the same. The applicant will be provided an electronic copy of the company registration number and the certificate of incorporation. If the applicant wants the certificate in the document form, then the same must be requested to the ACRA. A fee would be payable to the ACRA for this.
Documents required for LLC Registration in Singapore
- Residential Status of the Application.
- Address Proof For the Office.
- Permanent Residence Card of the Applicant.
- For Foreign Nationals- Proof of Investment, Passport Copies, and Official Address of Business.
- Memorandum of Association and Articles of Association ( For Foreign applicants).
- Application form to ACRA- Fulfilling the eligibility criteria.
- Information on the Shareholders and Directors of the Business.
- Documents must be translated into English if they are in a different language.
- KYC- know your client documentation.
- Bank Account Information.
At Enterslice, we have an expert group of professionals who will address your global business development needs. Our professionals have expert knowledge of LLC registration in Singapore. For Global business registration to filing tax returns in another country, we act as a one-stop-shop for all your business needs. Using our service for LLC registration in Singapore would provide you the following advantages:
- We will apply on your behalf to the ACRA. After filing, we will keep you updated on the status of your application.
- We also offer documentation support services.
- We also assist you in the name search process. We will reserve up to five names for your business.
- On a successful application, we will notify the outcome of the application to you.
- We also offer post monitoring compliance service.