Detailed Guide on Setting Up a Company in Singapore

Detailed Guide on Setting Up a Company in Singapore for Vietnamese Nationals

Establishing a company in Singapore provides numerous benefits for Vietnamese businesses, such as a favorable business environment, tax incentives, and opportunities to expand into international markets. Below is a detailed guide on how Vietnamese nationals can set up a company in Singapore:

1. Choose the Type of Business Entity

In Singapore, popular business entity types include:

• Private Limited Company (Pte. Ltd.): This is the preferred type, with separate legal entity status and limited liability for shareholders.
• Sole Proprietorship: Owned by a single individual who has unlimited liability for the business’s debts.
• Limited Liability Partnership (LLP): Combines features of a partnership and a limited liability company, allowing partners to have limited liability.

2. Name and Register the Company

• Company Name: Must be unique, non-duplicative, and not infringe on intellectual property rights.
• Check and Register Name: Use Singapore’s BizFile+ portal under the Accounting and Corporate Regulatory Authority (ACRA) to check and register the company name.

3. Prepare Necessary Documentation

• Director: At least one director must be a Singapore citizen, permanent resident, or valid work pass holder.
• Company Secretary: Must be appointed within six months of incorporation and must be a Singapore resident.
• Shareholder: Minimum of one shareholder, who may be an individual or a legal entity, with no nationality restrictions.
• Capital Requirement: Minimum capital of 1 SGD; no maximum capital requirement.
• Registered Address: The company must have a physical office address in Singapore.

4. Submit Company Incorporation Application

Required documentation includes:

• Approved company name
• Brief description of business activities
• Information about directors, shareholders, and company secretary
• Registered address in Singapore
• Articles of Association

5. Receive Company Registration Certificate

Upon approval, ACRA issues an electronic Certificate of Incorporation, which includes the company’s Unique Entity Number (UEN).

6. Post-Incorporation Formalities

• Open a Bank Account: Choose a suitable bank in Singapore to open a corporate bank account.
• Tax Registration: Register for a Goods and Services Tax (GST) number if projected revenue exceeds 1 million SGD per year.
• Apply for Business Licenses: Register with relevant authorities if operating in regulated sectors.

7. Compliance with Legal and Reporting Requirements

• Annual Financial Reporting: Submit annual financial statements and file annual returns with ACRA.
• Tax Filing: File corporate income tax returns with the Inland Revenue Authority of Singapore (IRAS).
• Overseas Investment Certificate: If transferring capital from Vietnam to Singapore for investment, it is necessary to obtain an Overseas Investment Certificate from the Ministry of Planning and Investment of Vietnam.
• Use of Support Services: Given the potential complexity of the process, utilizing services from reputable consulting firms in Singapore can save time and ensure compliance with legal regulations.

Setting up a company in Singapore requires careful preparation and strict adherence to legal regulations. Hopefully, the above guidance will help you understand the process and facilitate the expansion of your business in Singapore.