If you’re looking to establish a business in Singapore, there are several different structures you can register. The most popular is a Private Limited Company which separates your personal assets from the business and limits your liability. You can also register an LLP which is similar and may be preferable for professional services firms. In any case, you should consult with a registered agent and explore the suitability of your chosen entity.
The Company Constitution outlines the values, expectations and processes your business will follow when challenges arise. It’s a key document that will serve as reference for any future disputes. It is important to state all the relevant information, including your share capital, liabilities, and directors’ rights. It’s also a good idea to include the SSIC Code which describes your intended business activity so that you can be informed about government statistics and other requirements.
A Foreign Direct Investment (FDI) is when a foreign company owns all or a majority of shares in a local Singapore entity. This is a preferred structure as it has a separate legal entity and is treated as a local company for tax purposes. A foreign company can only appoint a maximum of 50 shareholders, and these can be natural persons or companies.
A Public Limited Company is a company that has more than 50 shareholders and can raise capital by offering shares to the general public. These entities are required to file a prospectus with the Monetary Authority of Singapore before making any public offers. setting up a company in Singapore