Post-Incorporation Steps for Your Singapore Company

A new company must fulfil several requirements following Singapore company incorporation before it can begin operations. Purchasing a company seal, putting up statutory books, and filing for taxes and licences are a few of the tasks that are associated with regulations.

Additional duties include the practical aspects of starting a business, like setting up an office, arranging insurance, and opening a bank account.Completing these tasks might seem challenging and daunting at first, especially if you are a new entrepreneur. However, these are generally simple tasks in Singapore, and you can finish them quickly as long as you have the required paperwork.

Post-Incorporation Steps for Your Singapore Company

• Open a bank account

A wide range of financial services, such as banking, insurance, investment banking, and treasury services, are provided by Singapore’s financial hub. You will probably need to open a local bank account to conduct business in Singapore; there are several reliable international banks available.

A corporate bank account can only be opened with the following documents: a certificate of incorporation, the company’s constitution, a board resolution authorising the account’s opening, and identification from the account’s beneficiaries. To open a company bank account, the majority of directors and account signatories must also be physically present at the bank.

Each shareholder must deposit their corresponding investment share capital toward the initial capital of the company after the bank account has been opened.

• Choose your company’s Financial Year End for your New Company

IRAS and the Accounting and Corporate Regulatory Authority (ACRA) will require you to file annual reports, based on your Financial Year End (FYE)—the date by which you must submit an annual performance report to the authorities about your business.

Though you can choose any date for this, the most popular options are the 31st of March, 30th of June, 30th of September, or 31st of December.

You can select this date on your own, but note that the date of the following tasks will depend on the FYE you select:

• Submitting annual reports,
• Filing the Estimated Chargeable Income (ECI), and
• Holding the annual general meeting.
• Appoint an Auditor

A public accountant or an accounting firm approved by the ACRA is an auditor, and they are in charge of your company’s reporting standards.

Within the first three months of incorporation, you will need to appoint an auditor, depending on the kind of business or company you will be operating.

It will not be necessary for you choose an auditor if:

• The total yearly revenue of your business does not surpass S$10 million.
• The total assets of your business within your FYE do not surpass S$10 million.
• At the end of your FYE, the total number of full-time employees you have does not exceed 50.

Since most businesses often satisfy all three of the mentioned requirements, they are not required to complete this stage. This implies that most businesses are exempt from the need to conduct an annual audit.

• Appoint Company Secretary

Within six months of the company’s incorporation, every director of a Singapore company is required by the Singapore Companies Act to appoint a qualified company secretary. A company secretary is an officer of the company who is mainly in charge of fulfilling the reporting and administrative duties stated by Singaporean law. A single director cannot serve as the secretary of the company if there is only one director.

The secretary needs to be a Singaporean citizen. Either by belonging to one of Singapore’s three public accounting organisations or by having served as a company secretary for three of the previous five years, he or she must be able to demonstrate the necessary expertise for the position.

It is strongly advised to appoint a company secretary from the beginning, as various legal formalities must be fulfilled shortly after incorporation. The corporate services company that incorporated your business usually designates one of its staff members to serve as your company secretary.

• Buy Company Seal

It is legally required for all Singaporean businesses to purchase a seal to stamp official documents. Frequently referred to as a “common seal,” these seals are inkless, metallic, and imprint the company’s name and registration number in an embossed manner on official documents like loan documents and share certificates.

Before applying a common seal, companies need to pass a board resolution. Additionally, the documents typically need to be countersigned by the company secretary or any two directors. The company secretary should maintain control over the Seal.

• Issue Share Certificates

A legally binding document that attests to a shareholder’s ownership of the number of shares that a company has issued is called a share certificate. It may or may not be issued with the company’s common seal.

The total number of shares you have issued, the shares you have distributed to your shareholders, and the shares you have retained as the company’s owner must all be recorded. In the future, this information will be required for several funding-related purposes.

• Set up Statutory Books

Your company’s legal documents, known as statutory books, are stored at its registered office in Singapore. They have to be kept up-to-date and available for inspection at all times, as they are a public document that can be accessed at any time. Statutory books include:

• Up-to-date details on corporate officers, including secretaries, auditors, and directors; the data should include resignations and appointments.
• A list of shareholders, including information on any share transfers and the number of shares each shareholder owns.
• Information about debentures and fixed or floating charges that are used to secure the company’s borrowing.
• Resolutions and minutes from AGM meetings.

The statutory books for the company must be created and kept up-to-date by your company secretary.

• Set Up Your Accounting System

From the day your Singapore company is registered, you must maintain a record of all costs and earnings. This allows you to comply with Singapore’s tax regulations and stay informed about the company’s financial situation and profitability.

It is legally required to maintain current accounting records in accordance with Singapore Accounting Standards, so make sure you stay on top of things to avoid facing tax evasion penalties.

• Obtain business licences

Before starting business operations, you may need to obtain a business license in certain industries in Singapore. Retail, construction, hotels, restaurants, spas, health care facilities, employment agencies, travel agencies, financial services, event planning, real estate, publishing, telecommunications, and education are a few examples of these industries.

In Singapore, obtaining a business license is a quick and easy procedure. As long as you can meet the licensing requirements, there are no bureaucratic hurdles in the way of the procedures; in other words, no bribery or “connections” are necessary.

• Apply for GST

Value Added Taxes (VATs) are similar to the Singapore Goods and Services Tax (GST). Imported goods into Singapore as well as the supply of goods and services within the nation are subject to a standard 7% tax rate. While not all businesses must register for GST, you must do so if your company:

• Has more than S$1 million in revenue over the previous 12 months, or
• It is anticipated that this will happen during the upcoming 12 months.
• Smaller companies that fall below the aforementioned threshold are not required to register for GST, though they are free to do so voluntarily.
• Obtain Business Insurance

You should get insurance covering workers’ compensation, general liability, and any other business-related risks that might be relevant. During this process, a reputable insurance broker can be of great assistance. As your business grows, the need for insurance will also increase.

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