Converting a Sole Proprietorship to a Private Limited Company
While a sole proprietorship is the simplest form of business to operate, it has its risks and limitations. If your business is experiencing exponential growth or if you have ambitions to expand your business to its fullest potential, it may be time to convert it into a private limited company
Private Limited Company
A company is a business entity registered under the Singapore Companies Act, Chapter 50. As an entity, the company has rights to own properties, has perpetual succession and can sue or be sued. Among the different types of business structure, a private limited company is one of the most popular in Singapore.
Limited Liability Partnership
A partnership is a business firm formed by at least two partners. There are three types of partnerships in Singapore: General Partnership, Limited Partnership (LP) and Limited Liability Partnership (LLP). Amongst them, LLP is the most attractive vehicle to form a partnership.
Sole Proprietorship
The simplest form of business structure, a sole proprietorship is a business owned by an individual or company. The sole-proprietor has absolute ownership and authority in the management of the business.
Singapore Subsidiary Company
A subsidiary company is a private limited company incorporated in Singapore that is partly or completely owned by the parent company.
Branch Office
A registered branch office in Singapore is an extension of its foreign parent company registered outside of Singapore.
Representative Office
A representative office in Singapore is registered as a temporary arrangement for conducting marketing research activities or feasibility studies on behalf of its parent company.
Singapore Accounting Standards & Unaudited Annual Report
If your company is a Small Entity (SE), it does not need to have its accounts audited; only an Annual Return is required to be filed with ACRA.
Singapore Accounting Standards
It is mandatory for all companies incorporated in Singapore and all Singapore branches of foreign companies to prepare and present financial statements that comply with the Singapore Financial Reporting Standards.
Singapore Taxation System
Singapore has one of the most attractive taxation systems in the world. As a pro-business nation, its taxation system is designed to encourage local and foreign entrepreneurs and companies to invest in the country.
S Pass
Mid-skill foreigners who wish to work in Singapore can apply for an S Pass from the Singapore Ministry of Manpower (MOM). Designed as a work visa for mid-level skilled workers and open to all nationalities, the S Pass applicant is assessed based on a point system that takes into account their educational qualifications, skill types, job types and previous work experience.
EntrePass/Employment Pass Comparison
If you are a foreigner who has set up or are planning to set up a company in Singapore, should you apply for an Entrepreneur Pass (EntrePass) or Employment Pass? The answer depends on many factors, including the type of business your company is involved with, your academic qualification, etc. Here is a table that compares the two types of work pass.
Dependant's Pass
An Employee Pass (EP) or Entrepreneur Pass (EntrePass) holder can apply for their spouse and unmarried children under the age of 21 to join them in Singapore, provided they meet certain criteria. These family members will be holders of Dependant's Pass (DP), which allows them to live and study in Singapore.
Entrepreneur Pass
Eligible foreigners who wish to start a business and relocate to Singapore to operate their business can apply for an Entrepreneur Pass, or more commonly known as EntrePass, from the Singapore Ministry of Manpower (MOM).
Employment Pass Eligibility Checklist
There is a set of criteria for those applying for a Singapore Employment Pass (EP). Find out what these criteria are.
Employment Pass
Foreign professionals, managers and executives who wish to work in Singapore are required to obtain an Employment Pass (EP) from the Singapore Ministry of Manpower (MOM).
Company Director
A director is a person responsible for managing the affairs of the company and providing it with strategic directions. A company incorporated in Singapore must nominate at least one director who is ordinarily resident in Singapore.
Company Secretary
A Company Secretary is the backbone of all administrative and compliance-related functions in the company. A Singapore-incorporated company must appoint a Company Secretary within six months from the date of its incorporation.
Singapore Statutory Compliance Requirements
Once a company is incorporated in Singapore, it needs to comply with all the regulations listed in the Companies Act.
Annual Filings
All companies incorporated in Singapore are required to submit their Annual Return and Tax Return to ACRA and IRAS respectively.
Incorporation Details
While it is relatively easy to incorporate a business in Singapore, you should ensure that you have all the documents ready before registering your business with ACRA.
Legalisation and Notarisation of documents in Singapore
What exactly are notarisation and legalisation? Why and when do you need to notarise or legalise your documents? Find out how you can go about doing so.
