Incorporating your company is a significant decision. Incorporation provides legal protection for the corporation’s owners and assets, but it does not make the business invincible to lawsuits or bankruptcy. To protect yourself as an owner of a corporation, you need to be proactive in understanding your rights and responsibilities as an individual that is now part of this new entity. This post, therefore, aims at discussing the tips for company incorporation in Singapore.
Find out the structure of your business requirement
More than half of all businesses in Singapore are currently being run as a sole proprietorship. This is the easiest way to start your own business, but it doesn’t provide liability protection for its owners or assets if something happens to its business. If you’re planning on starting a business and want to protect your assets, you should consider incorporating the company.
Choose the right company name
First impressions count. Your company’s name is one of its first introductions to the public. To ensure the success of your new business, it’s crucial to select a name of your company incorporation in Singapore that will attract potential customers. Here are some tips in selecting the right company name:
- Make sure that your name is available for registration. Some popular names may already be registered by others, so make sure you double-check on the NSS database first.
- Name uniqueness. Think of it this way – is the name easily remembered and pronounceable? How about its length? If your business is on the internet or social media, you should avoid having a long company name because people tend to avoid registering them as their usernames. What’s more, most popular websites have limited characters for your username.
III. Avoid selecting a company name that can be misconstrued as something else due to its similarity. For instance, if you’re starting a cosmetics business, make sure you avoid names that sound like “Cosmetic” or “Massage” because it may sound like an adult service provider and hence could potentially alienate your target market.
- Be creative in choosing your company name. The ideal one should be easy to remember and catchy.
- Check if there are any offensive or sensitive words in the name you intend to register.
Develop a registered business address
If you need to get on with your business right away, it’s vital to prepare your registered office address in advance to be ready to do business without any delays. It’s also equally important that all legal documents relating to your company are kept at this address so that you and your service providers, such as your company secretary or resident director, will have easy access to them at any time.
Get a resident director
The directors of your company must be at least 21 years old and ordinarily residing in Singapore. This is an essential feature because the resident director can give legal consent in a court of law on behalf of the company.
Get a Company Secretary
If you intend to trade overseas and sell physical goods (e.g., food), it is essential to get a company secretary for your business. A secretary will be able to establish the company’s financial records and keep them up-to-date together with tax-filing requirements.
Company incorporation in Singapore is more beneficial than running a business as a sole proprietorship because it provides you with personal liability protection. If anything happens to the company, your assets are protected against an existing or future lawsuit and bankruptcy claims. But for your corporation to remain reputable in the eyes of all stakeholders such as employees, suppliers, customers, and government agencies, it’s vital to develop a registered business address in advance, get a resident director, and get a company secretary.