A Step by Step Guide to Registering Your Business in Singapore [How-To-Guide]
Registering Your Business in the Singapore Business Registry
Did you know that compared to the global average of 50%, 74% of millennials in Singapore work to establish their business and become their own bosses? This surge in entrepreneurship is reflected in the statistics from the Singapore Business Registry,
In 2024, the monthly business entity count in Singapore shows a dynamic trend in company registrations, including companies, sole proprietorships, partnerships, limited liability partnerships, limited partnerships, public accounting firms, and variable capital companies. []
2024 Statistical Summary: Monthly Business Entity Count in Singapore
- Companies: The number of companies has shown a steady increase from January to April, rising from 428,320 to 431,271. This represents a growth of nearly 2,951 entities over four months, indicating a robust increase in this business type, with an average monthly growth of approximately 738 companies.
- Sole Proprietorships & Partnerships: The count of sole proprietorships and partnerships has seen a slight decline from January’s 143,430 to 143,071 in April, a reduction of 359 entities. This trend suggests a slight decrease in these types of business entities, averaging about 90 fewer entities each month.
- Limited Liability Partnerships (LLPs): LLPs have maintained a relatively stable presence, with minor fluctuations. The count increased slightly from 16,922 in January to 16,933 in April, an addition of only 11 entities. This stability shows a consistent interest in forming LLPs among entrepreneurs.
- Limited Partnerships: There has been a small but steady increase in limited partnerships, from 729 in January to 754 in April, showing an increase of 25 entities. This represents a gradual but continuous interest in this entity type, with an average monthly growth of about 6 limited partnerships.
- Public Accounting Firms: The number of public accounting firms has remained nearly constant, with only a slight increase from 410 in January to 413 in April, an increase of 3 firms. This suggests a stable market for public accounting services.
- Variable Capital Companies (VCCs): VCCs have shown a notable increase, from 1,023 in January to 1,060 in April, marking an increase of 37 companies. This growth indicates an increasing interest in this relatively new type of business structure, with an average monthly increase of about 9 VCCs.
- Total Live Count: Overall, the total number of active business entities increased from 590,834 in January to 593,502 in April, a total increase of 2,668 entities. This shows a positive growth trend in the business sector, with an average monthly increase of approximately 667 entities.
What to Consider When Registering a Business Name in Singapore -4 Simple Steps
Here’s a step-by-step guide to simplifying the process of registering your business in Singapore. Let’s dive in!
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Zero in on the Business Structure
Choosing the right business structure is the first step in registering your business. In Singapore, the main types of business structures include sole-proprietorship or partnership, limited partnership, limited liability partnership, and companies (private & limited). To decide which structure best suits your needs, consider factors such as capital investment, business risks, the number of owners, and their responsibilities.
Moreover, specify your business’s primary and secondary activities by selecting a Singapore Standard Industrial Classification (SSIC) code. This code is crucial for classifying your business’s field of activity in the commercial register in Singapore.
2. Pick Your Business Name
After deciding on the structure, the next step is to choose and reserve a business name. Use the BizFile+ portal to check if the name is available. It’s essential to choose a unique name that clearly indicates your business activities and stands out in the registry of businesses in Singapore. Once approved, you must register the business name with ACRA within 120 days to secure it.
3. Register Your Company Address
Next, get your business address registered with ACRA. In the case of being a sole proprietor, your residential address can be used as your business address under the home office scheme. However, for companies and LLPs, a registered company address is where the public has access during working hours, which means it needs to be somewhere other than your residential address. Furthermore, the records and registers of the company are kept at this address.
4. Finally, Register Your Business With ACRA
After following all the above-mentioned steps, the final task is to register your business with ACRA. After all the requirements are fulfilled, you need to register your business online which takes less than an hour. In rare cases, when the application has to be referred and approved by another agency, the registration process may take between 14 to 60 days.
Upon the successful registration of your business, you receive the business details and a Unique Entity Number (UEN), the ID for your business.
Different Types of Business Entities in Singapore
In Singapore, entrepreneurs can choose from five main types of business entities, each with its specific characteristics and requirements. Understanding these options is crucial for successfully registering and managing your business in the Singapore Business Registry.
Sole Proprietorship
A sole proprietorship is typically a small business owned by one person. This entity is suitable for Singapore citizens, permanent residents, EntrePass holders, or foreign citizens who appoint a locally resident authorized representative. The owner is personally liable for all profits and debts of the business. If the owner is a non-resident Singapore citizen, an authorized representative in Singapore is mandatory.
Partnership
A partnership in Singapore is a business structure where two or more individuals (up to a maximum of 20) own the business. This type of entity features unlimited liability, where the partners are personally liable for business debts, and profits are taxed as part of the partners’ personal income. Registration is available to Singapore citizens, permanent residents, EntrePass holders, or foreign citizens with a locally resident authorized representative.
Limited Partnership
A limited partnership comprises at least one general partner and one limited partner, blending elements of partnerships and corporations. The liability of each partner depends on their involvement in management. If all partners are residing abroad, a local manager who is a Singapore resident must be appointed.
Limited Liability Partnership (LLP)
An LLP is a flexible business structure where the business is a separate legal entity from its partners, allowing for any number of partners. This structure protects each partner from liabilities due to the wrongful acts of other partners. Similar to other structures, if the partners are not residents, a local manager must be appointed in Singapore.
Company
A company in Singapore can be either private or public. It is recognized as a separate legal entity, protecting the personal assets of its owners from business liabilities. Companies require at least one director who must be a resident of Singapore. Non-resident individuals who wish to act as local directors may apply for an EntrePass through the Ministry of Manpower.
Transitioning Business Structures
As your business expands, there are provisions to transition from a sole proprietorship to more complex structures such as a partnership or LLP, accommodating growth and evolving business needs.
By understanding these business structures, entrepreneurs can make informed decisions when registering with the Singapore Companies Register, ensuring compliance and optimal operation within Singapore’s regulatory framework.
Seek Professional Guidance
However, by following the right procedures and steps, your business registration can be made smooth and hassle-free. Follow the Ƶ blog for more information about registering and running a business in Singapore.
How Long Does It Take to Register a Company in Singapore?
Registering a company in Singapore involves several steps, each with its own typical timeline. The total time required can vary significantly based on how quickly you provide the necessary information and documents. Below is an outline of the typical timelines for each step of the registration process:
Providing Information About Company Structure and Supporting Documents
Time Required: Ranges from 1 hour to a few days, depending on how promptly you can gather and submit the required information.
“Know Your Client” (KYC) Checks by Corporate Service Provider
Time Required: 1-2 days. This step involves KYC checks as mandated by law, and the time taken can depend on the complexity of the corporate structure.
Reservation of Company Name with ACRA
Time Required: Less than 1 hour. Once you decide on a name, the reservation with the Accounting and Corporate Regulatory Authority (ACRA) is typically swift.
Preparation of Incorporation Document Set
Time Required: 1-2 hours. This involves preparing all necessary incorporation documents for the registration process.
Client Review and Signatures on Document Set
Time Required: Can vary from 1 hour to a few days, depending on the availability of the client and the number of signatories involved.
Incorporation with ACRA
Time Required: 1-2 hours. Once all documents are ready and signed, the actual incorporation process with ACRA is quite quick.
Total Timeframe
Overall, the process from start to finish can take anywhere from a single day to several days. The primary factor affecting the duration is how quickly you, as the client, can respond and provide the necessary inputs throughout the process.
By understanding these steps and preparing in advance, you can help ensure a smoother and quicker company registration process in Singapore.
What Next After Registering a Business Name?
After successfully registering your business name with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore, the next steps are crucial to establish your business legally and operationally. Let’s delve into some statistics and key points for each step:
Secure Your Business Location
According to a recent survey, 82% of businesses in Singapore believe that having a strategic location is critical for their success.
Once your business name is registered, securing a physical location or confirming your home office setup is essential. This address will be used in all legal documents and is necessary for business correspondence.
Obtain Necessary Licenses and Permits
Approximately 65% of businesses in Singapore require specific licenses or permits to operate legally in their respective industries.
Depending on the nature of your business, you may need specific licenses or permits to operate legally in Singapore. Check with ACRA or the relevant government websites to understand the specific requirements for your business type.
Open a Business Bank Account
Research shows that 92% of businesses in Singapore separate their personal and business finances by opening a dedicated business bank account.
It’s important to separate your personal finances from your business operations. Opening a business bank account in Singapore typically requires your ACRA registration details and UEN. This account will be used for all business transactions.
Set Up Your Accounting System
A staggering 78% of small businesses in Singapore believe that having an efficient accounting system is crucial for their financial management.
Establishing an accounting system to manage your finances is crucial. This will help you track expenses, profits, and financial statements, ensuring that you are ready for annual tax filings.
Develop Your Brand Identity
Research indicates that 71% of consumers in Singapore are more likely to purchase from a business that has a strong brand identity.
With your business name registered, you can now start building your brand identity. This includes creating a logo, business cards, and a website. These elements are crucial for marketing your business and establishing an online presence.
Plan Your Marketing Strategy
According to recent data, businesses in Singapore allocate an average of 30% of their budget to marketing activities.
Develop a marketing strategy to introduce your business to potential customers. Consider digital marketing, social media, and traditional advertising methods to increase your visibility and attract customers.
Regular Compliance Checks
Compliance checks conducted by ACRA reveal that 60% of businesses in Singapore face compliance issues due to inadequate monitoring.
Ensure that your business remains compliant with local laws and regulations. Regular checks will help you stay updated on any changes in legal requirements, preventing potential legal issues.
Understanding XBRL in the Singapore Business Registration Process
eXtensible Business Reporting Language, or XBRL, is transforming how businesses around the world communicate financial and business data. In Singapore, XBRL has become essential, particularly when companies file their financial statements with the Accounting and Corporate Regulatory Authority (ACRA).
XBRL simplifies the reporting process by standardizing the format for submitting financial information, making it accessible and interpretable both by humans and machines. This standardization is crucial for ensuring compliance with local regulations and for enhancing the quality of the financial data reported. For companies operating in Singapore, XBRL facilitates smoother and more efficient communication with stakeholders and regulatory bodies, improving transparency and making it easier to compare data across different entities. Learn more about choosing the right XBRL expertise in Singapore.
Singapore’s commitment to XBRL aligns with its broader goal to optimize business processes and reinforce its position as a global business leader. Adopting XBRL helps ensure that financial reporting adheres to international standards, an aspect vital for attracting foreign investments and driving economic growth. Understand the different XBRL format types that can benefit your business.
At the heart of this technological shift, Ƶ proudly offers its XBRL services, helping businesses seamlessly integrate this standard into their reporting processes. With Ƶ, companies can navigate the complexities of financial reporting with ease, ensuring compliance and clarity in their business communications.