Congratulations on incorporating your business in Singapore! Now that you have taken the crucial step of establishing your company in this dynamic business hub, it is time to set the stage for success. In this article, we will explore the essential steps to take after incorporating your business in Singapore, ensuring a smooth transition into the competitive and thriving business landscape.
1. Determine Company’s Financial Year-End (FYE)
As a business owner, it is essential to submit various reports annually to both the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). The specific deadlines for these annual reports are contingent upon your company’s financial year-end (FYE). Additionally, the FYE plays a pivotal role in determining when you must file the Estimated Chargeable Income (ECI) and conduct the Annual General Meeting (AGM).
What is great about incorporating your business in Singapore is that you can enjoy flexibility in selecting any date for the financial year-end.
2. Appoint an Auditor
Unless your company is exempted from audit requirements under the relevant sections of the Companies Act, you must appoint an auditor within 3 months of incorporation.
The auditor is accountable for your company’s reporting standards. For most types of businesses, it is necessary to designate an auditor within 3 months of incorporation. However, it is not obligatory to appoint an auditor if your business satisfies at least 2 of 3 of the following conditions:
1. Your company’s annual revenue does not surpass S$10 million.
2. The total assets of your company do not exceed S$10 million within your financial year-end (FYE).
3. The total count of full-time employees in your company is not more than 50 at the conclusion of your FYE.
3. Hire A Corporate Secretary
A corporate secretary oversees administrative duties such as preparing and informing authorities about alterations in your company’s name, structure, or board composition. They are also responsible for submitting any necessary paperwork required by Singapore authorities. When the time comes for annual filing and the Annual General Meeting (AGM), it is the duty of the company secretary to inform both directors and shareholders.
In Singapore, the appointment of a corporate secretary is mandatory within 6 months of the company’s incorporation. The designated company secretary must meet one of the following criteria:
1. A natural person; and
2. Ordinarily resident in Singapore.
The position of company secretary must not be left vacant for more than 6 months. The sole director of a VCC and the company secretary cannot be the same person.
For businesses struggling to locate a suitable corporate secretary, numerous companies, such as MAL Management Pte Ltd, provide company secretary services in Singapore to assist you in finding a dependable candidate.
4. Issue Share Certificates
The Share Certificate is a legally binding document that validates an individual’s ownership of a specific number of shares issued by a company. It can be issued with or without the company’s common seal.
It is essential to maintain a record of the total number of shares issued, the allocation to shareholders, and the amount retained by the company owner. This information will prove crucial for various financing purposes in the future.
5. Set Up Your Statutory Books
Your company’s statutory books, which serve as legal records, need to be stored at the registered office in Singapore. Since this information is accessible to authorities upon request, it is crucial to keep it regularly updated, especially in anticipation of potential inspections by entities such as IRAS or ACRA.
The statutory books should encompass the following details:
i. Current and accurate information about company officers, including auditors, directors, and secretaries, along with dates of appointments and resignations.
ii. A comprehensive list of shareholders, indicating the number of shares they own and any recent stock transactions.
iii. Details on fixed or floating charges and debentures utilized to secure loans made by the company.
iv. Minutes from Annual / Extra General Meetings and information regarding resolutions adopted.
v. Register of Controllers and Nominee Directors
Companies are required to maintain its beneficial ownership information in the register of controllers and to keep a register of its nominee directors containing the nominators‘ particulars.
The responsibility for compiling and maintaining the company’s statutory books lies with the company secretary.
6. Initiate Your Accounting System
Maintaining a record of all earnings and expenditures from the moment your company is registered is essential. This practice ensures that you stay well-informed about your business’s profitability and financial standing, while also complying with Singapore’s tax regulations. It is crucial to establish a dependable accounting system and stay vigilant to prevent potential penalties for tax evasion.
Adhering to the “Singapore Accounting Standards” is especially important, as they mandate businesses to keep their accounting books consistently updated.
7. Set up CorpPass
CorpPass is a digital authentication system introduced by the Singapore government to streamline and secure access to e-government services for businesses and organizations. It serves as a single login method for businesses to access multiple government online services. CorpPass replaces the previous digital certificates and SingPass (the individual equivalent) for business-related transactions with government agencies.
To set up CorpPass in Singapore, businesses must first register on the CorpPass website, appoint a CorpPass Administrator, verify their identity, and activate the account. The CorpPass Administrator then sets up user accounts for employees, assigns roles and permissions, and links the organization’s account to specific government digital services. Training and support materials are available on the CorpPass website, and regular maintenance ensures that accounts remain up to date with organizational needs.
Conclusion
The steps you take after incorporating your business plays a crucial role in its long-term success. By following the steps mentioned above, you set the stage for sustainable growth and resilience in the dynamic business landscape.
However, we understand that for first-time business owners and entrepreneurs, these tasks may seem daunting and challenging. If that is the case, seeking help from corporate service providers in Singapore can provide much peace of mind. With MAL Management Pte Ltd, our Company Secretarial and Tax & Accounting services can take care of these tasks for you.
For more information, contact us here to get a free consultation and non-obligatory quote.