Corporations are legal entities that exist independently from their shareholders or board of directors and are not owned or controlled by anybody else. Public companies and private corporations are the two primary business structures in Singapore. Firms with more than 50 shareholders are typically classified as public companies and listed on the Singapore Exchange (SGX). The Singapore Exchange does not list private companies, which may only have a maximum of 50 members.
Individuals who own stock in a company are known as shareholders. The board of directors is then elected by the shareholders. When it comes to forming a Singapore company, anybody who is at least 18 years old may do so, regardless of where they are from. The option of cheap company incorporation now comes easy also.
Is there a specific reason for registering a company?
As contrast to sole proprietors and partners, the owners of companies have limited responsibility. A company is a separate legal entity from its owners in terms of their position as legal entities. Individual shareholders of companies are not personally liable for the debts or legal actions filed against them on behalf of the business.
Comparatively speaking, corporations must meet far more stringent regulatory criteria than single owners or partnerships. The Accounting and Corporate Regulatory Authority (ACRA) may take disciplinary action if a company fails to follow certain standards, such as producing annual reports or holding annual general meetings (ACRA). Dissolving a company also takes longer and requires more work; it might take up to five months for the corporation to be removed from the register.
Expanding businesses should consider forming a corporation as the best legal structure to do it under. The relative ease with which money may be generated and the transferability of ownership are two important benefits of forming a corporation rather than another kind of business entity. Please check out our page on Singapore’s various business formations for more details. You can also Choose a Company Secretary in Singapore and have the perfect running there.
A Pre-Registration Checklist from the Director’s Point of View
Singapore citizens, Singapore Permanent Residents, or those granted EntrePass, Employment Pass, or Dependent’s Pass are required to be the company’s directors; this individual must also be a person who is habitually residing in Singapore.
- A Singapore company is free to name as many local or overseas directors as it wants. As a condition of consideration, candidates must be at least eighteen years old and free of any history of bankruptcy or malpractice.
- Directors do not have to be stockholders to serve on the board. Non-shareholders may thus be nominated as directors.
Shareholders
The number of shareholders in a Singapore private limited company may range from one to fifty, depending on the jurisdiction. If the case calls for it, a shareholder may be either a natural person or a legal body like a company or a trust.
Singapore firms may be held fully by local or foreign investors. Upon completing the incorporation process, new shares may be issued or existing shares may be transferred to another person.
The corporation’s secretary
Companies in Singapore are obliged by law to hire a licensed company secretary within six months of its inception, a requirement known as the Singapore Companies Act. As a natural person, the company secretary must be located in Singapore and satisfy the other criteria listed above.
Conclusion
Please bear in mind that the secretary of a corporation cannot be the same person who serves as both a director and a shareholder. Additional rules provide that the role of company secretary cannot be vacant for more than six months at a time.
