Now that the fundamentals on Limited Liability Companies (LLCs) have been laid out, it’s time to find out how to set up this form of business here in Singapore.
Setting up your business may seem like a daunting feat, especially when you don’t know where to begin and what is required for the application process. But with this concise guide, we’ve made it simple to digest and narrowed down all the things you will need during registration. Here’s how to apply as a Limited Liability Company in Singapore!
Compliance requirements for LLCs in Singapore
Here are some considerations and requirements needed when setting up an LCC:
- Depending on the nature of the business, you may need to apply for various business licenses and permits from external government agencies. Applications can be done online and can take up to two months to complete the processing.
- If your company exceeds S$1 million in annual taxable turnover, they must register for Goods and Services Tax (GST). This significantly lowers the cost of administration and gives you more credibility as a business.
- A registration fee of S$300 for incorporation and S$15 for the name application must be paid.
- Any company or business in Singapore must comply with employment regulations under the Employment Act when hiring or retrenching employees. If the employee is a Singapore citizen or Permanent Resident, companies are required to make employer contributions to their Central Provident Fund (CPF) account at the designated CPF contribution rate.
The step-by-step process to apply LLC
1. Choose your company name
Although this may seem like a simple, no-brainer task, choosing your company name is an important step whenever you begin a new business venture. Your brand name will define your image and is the first thing people will see, which can influence potential customers’ first impression of your company. Be sure to choose a suitable and unique company name to set yourself apart from other businesses and stand out between your counterparts in the industry.
2.Determine your company type
While you may have already chosen a Limited Liability Company (LCC) as your business structure, you still have to determine your company type. There are three LCCs that you can choose from depending on your needs: Private Limited Companies (Pte. Ltd.), Public Limited Companies (PLCs), and Public Company Limited by Shares. Rule out the advantages and disadvantages of each one and find out which would be the best option.
3. Appoint directors and other key personnel + shareholder
In any LLC, it is mandatory to designate officers and other key personnel in the company. Officers would typically include (but are not limited to) the Chief Executive Officer (CEO), Managing Director, a company secretary, and auditor. When submitting an application online, ensure that you have the following information from each of these members:
- Personal identification details
- Contact information
- Residential address
As external members, every company needs to have at least one shareholder and is required to submit the above-mentioned information of every member along with the application as well.
4. Provide a registered address
A registered office or address refers to the place where all your business functions and communications take place, where the company’s register and records are kept, as well as where all notices are addressed to. Make certain to include a registered office address in your application, and is full operational and accessible to the public during regular office hours.
Some may wonder whether they can use their home address as the registered address for their business. This isn’t advisable as the ability to retain limited liability for all business activities and debts can only be applied when your personal and business activities are separate, including your registered address.
5. Choose a Financial Year End
In a nutshell, a financial year end (FYE), or fiscal year end means refers to the end of a company’s accounting period, which typically occurs every 12 months. This period is used to calculate annual financial statements and file taxes that companies are required to submit. Some might have the misconception that your FYE needs to fall on the last day of the year. However, depending on your company’s needs, your fiscal year-end need not fall on December 31 and can fall on any day within the year. In Singapore, some of the common dates for most companies include 31 March, 30 June, 30 September or 31 December.
6. Submit your application
When everything is finally said and done, all that’s left to do is submit your application on BizFile, ACRA’s business filing portal. You may use your SingPass to register and will also need your transaction number of your approved company name application. Additionally, there will also be S$300 registration fee that is payable by credit/debit card, PayPal, Apple Pay and Google Pay.
Post-incorporation steps
Once all is said and done, it’s time to move on to incorporation. However, some business owners may find this to be the most tedious part of the process.
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Frequently Asked Questions
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