So you have decided to set up a digital marketing company in Singapore. You have your vision and you know exactly what you want to achieve through your company. What now remains is to register, or incorporate your company. At this point, most people will often prefer to let the experts do the rest of the work. After all, incorporation sounds like such a daunting task, doesn’t it?
In truth, incorporating a company in Singapore is fairly easy. You can even complete the entire process online. That being said, there are technical aspects of the process that require guidance, especially for those who are new to incorporation. Keep reading to find out exactly what incorporation means and how you can register your company legally in Singapore.
How to Incorporate a Digital Marketing Company in Singapore
1. Find a Company Name
Before you start the registration process, you must first find an appropriate name for your company. There are no rules about choosing a company name, but the name you choose is subject to approval. Why is that, you ask? Because sometimes the name of your choice maybe already taken by another company, and there definitely can’t be two different companies registered under the same name, can there?
It is important that you choose your company name with care since it is virtually the identity of your company. Make sure that it can be easily pronounced, and that it is also memorable. Try to make it somewhat descriptive of the services you offer. Finally, ensure that it is appropriate and that it is not likely to offend anyone.
2. Registered Address
After settling on a name, you then have to provide a registered address for your company. This can either be a commercial or residential address. However, it cannot be a post office address as this is prohibited by the law.
If you intend to operate your digital marketing company from your home, you can request to be included under the Home Office Scheme. Generally, you will be allowed to operate only a small business from your home, otherwise, you may have to move to a commercial location.
Under the Singapore company incorporation guidelines, every company must have directors. You can appoint as many directors as you please, but one of them must be a Singapore resident. This means that at least one director must either be a Singapore citizen, a permanent resident of Singapore or a holder of a valid employment pass.
All the directors must be legally capable persons. This means that they should be over 18 years of age and they must not be bankrupt. You would also be better off choosing directors that have no previous criminal record as well as those who are safe from bankruptcy even in the future.
4. Company Secretary
Every registered company in Singapore must have a company secretary, as is outlined under Section 171of the Singapore Company Act. The company must appoint the secretary within six months of incorporation. Further, a shareholder or sole director cannot be the company secretary. The company secretary must also be a natural person who resides in Singapore.
A registered company must have at least one shareholder. The maximum number of shareholders for a limited liability company is fifty. A foreigner can own all the shares in a company.
6. Paid- up Capital
In Singapore, the paid-up capital for an incorporated body is a meager S$1. After registration, you can increase this amount to as much as you please.
One of the things that make Singapore such a lucrative location for a business is the tax policy. According to the law, a company that makes less than S$300, 000 is required to pay 8.5% in tax. Anything beyond that will be taxed at 17%. Besides, there are other tax benefits that company owners in Singapore enjoy. Better still, a company owner in Singapore doesn’t need to worry about capital gains taxes and dividends. Could it get any better?
How to Choose Incorporation Services Company
If you are a foreigner who wants to set up a digital marketing company in Singapore, going through the entire incorporation process may be time-consuming or even unduly expensive. Having to travel all the way to Singapore might not seem like such a good idea.
Luckily, there are countless companies that are dedicated to making the incorporation process as easy and convenient as it can possibly be. The companies are also great for Singapore residents who may be too busy to give an hour or two of their day registering a company.
If you fall into either one of the two categories, then you will have to choose an incorporation company to carry out the job for you. Here is how to go about it:
1. Various Services
When choosing an incorporation services company, you want to make sure that they can do the whole job with as little input from you as possible. For instance, can they come up with a professional name for your business? Can they stand in as a Singapore director before you can make your pick? Will they help you find a reliable and qualified company secretary? If they can do all this, then, by all means, go ahead and hire them.
Before you even choose a Singapore incorporation services company, you must be convinced that you are dealing with trustworthy people. You can carry out an internet search on them to find out what kind of reputation they have. You can also read reviews written on them. Ask to speak to some of their former clients. If you are convinced that they keep their word and do the right thing, then be sure to hire them.
Finally, a good company should charge reasonable prices for their services. You can only know what is reasonable by comparing the prices of various companies. Don’t fall into the trap of thinking that the most expensive company is the best. This is not always the case.
Incorporating an entity in Singapore is not all that hard. As long as you have met all the requirements, you should not experience any difficulties. Be sure to follow the tips shared above and you will not go wrong.
Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.