10 Things That Come After IncorporationDownload Now: FREE GST 2023 GuidebookDownload Now: FREE Employment Pass ChecklistDownload Now: Free Incorporation Checklist
Company incorporation means creating a company legally recognised by the government. When you have decided to take your business to the next level and have incorporated it, you might have even formally registered your office address in Singapore, and you likely feel like one significant hurdle is complete. Now is the time to organise and begin to plan what things come after the company's incorporation in Singapore. Here are 10 things that you should know after company incorporation in Singapore.
What Happens After Company Incorporation
Following are the steps you must do in the coming year after incorporating your company to get your company up and running. The following stages can be completed sequentially and are not in any particular order.
Your First Board Meeting
You may need to learn the tips for organising a successful board meeting. The first stage is to appoint your first board members, which you have probably already done. After all, members are appointed, it is time to hold your first board meeting, where you will establish rules, procedures, and goals after company incorporation. Adopting a constitution for your business is essential because the constitution will govern all internal operations of your business and act as your guide as you conduct business.
Usually, during the first board meeting, you will adopt a company seal, appoint officers, confirm the registration address in Singapore, decide on the financial year-end, and set up the books for your business. The first board meeting will likely take some time as all involved must work out the business details. Doing everything legally right from the start is vital and lays the best foundation for your new business.
Purchase a Company Seal
The company seal is not a stamp. It is metallic and does not require ink at all. A company seal will use on official documents, and when pressed into paper, it makes an impression of the seal. The impression from the seal will include not only your business name but also the business's registration number. This seal will also use on official documents such as share certificates and loan documents. Typically, two signatures must accompany the seal to make the document official. The seal will traditionally be kept in possession of the secretary. One person will control this official seal for security purposes. Normally, two directors, one director, and the company secretary, must countersign any Seal documents.
Issue Share Certificates
In Singapore, issuing share certificates is mandatory and not optional. A shareholder's ownership in a corporation's total number of shares that certified by a legally enforceable document called a share certificate. It can publish with or without the common seal of the company. You must keep track of the total number of shares issued, the number already distributed to shareholders, and the number of shares your business has retained. If there are any company shares changes, you may need to reissue or reclassify them.
Apply for Business License
Depending on your business, there may be a host of business licenses and regulations that you must follow after your company incorporation. It is essential to understand where you are doing business and have a firm idea of what type of business you will be running. Permits may need along with the business license, so it is essential to research and understand what needs to comply law before your first day of business. You must apply for a permit if your business fits any of the following categories:
- Financial services
- Employment agencies
- Travel agencies
- Educational institutions
- Companies that import or export products
If you find it all very confusing, plenty of companies specialize in helping you understand what regulations apply to you. Companies like Sprout can help you know what to do after company incorporation in Singapore. They can act as your company secretary and provide accounting services if you desire.
Appoint the Secretary
A corporate secretary is a qualified individual that a company appoints to fulfill administrative and compliance duties. This person will hold the seal, which makes all your documents official, and will have signing power for your share certificates. All Singaporean companies must appoint a corporate secretary within six months after company incorporation.
In Singapore, the secretary is also in charge of all the administrative and reporting tasks that the law requires. You must hire someone well versed in Singapore law who understands all the legal requirements for your business to operate. If you change your company's secretary, you must notify the Accounting and Corporate Regulatory Authority (ACRA) by submitting a cessation within 14 days from the resignation date.
Appoint the Chief Executive Officer
The Chief Executive Officer (CEO) is responsible for the day-to-day operations and decisions of the business. The CEO is responsible for ensuring that needed resources are in place and making decisions about the business's goals and direction. The CEO plays a vital role in the company's significant decisions and ensures that the right people are in the right positions to support the smooth operation and production of your goods or services. Like the secretary, any CEO change must notify the Accounting and Corporate Regulatory Authority (ACRA) within 14 days of appointment.
Appoint an Auditor if Needed
Under Singapore law, you may need to appoint an auditor, but you will be exempt from appointing an auditor if:
- The total annual revenue of your business does not exceed S$10 million.
- The total assets of your business for the FYE do not exceed S$10 million.
- You have no more than 50 full-time staff members at the FYE.
If that applies to your industry, you must choose your auditor within three months of the company’s incorporation.
Set Up Statutory Books
These books are official legal records of your company that need to keep at your registered office in Singapore. All information must be made available to any authorities in Singapore when requested. These details need to be in your company's statutory books:
- The latest information about your company's directors, auditors, and secretaries includes the date of any appointments or resignations.
- A list of your shareholders, their ownership percentages of shares, and details on any share transfers
- Information on the fixed or floating charges and debentures used by the corporation to obtain any loans
- Resolutions from the Annual General Meetings and meeting minutes
Your company secretary is responsible for creating and keeping the firm's statutory books.
Set Up Your Accounting System
It is critical to keep account of every expense and revenue after company incorporation, enabling you to comply with local tax laws while staying updated about the company's financial status and profitability. Ensure you stay on top to prevent access with tax evasion penalties that comply with the law to keep your accounting books current utilising the Singapore Accounting Standards.
Open a Corporate Bank Account
When opening a corporate bank account, certain banks in Singapore demand that the account signatories and directors be present in person to sign the necessary paperwork. On the other hand, certain banks will accept signatures obtained in person at a branch location abroad or in front of a notary. In general, the following documents are typically needed in Singapore when creating a corporate business account:
- A resolution by the company's board of directors
- The company's certificate of incorporation
- The company's business profile
- Company's Memorandum and Articles of Association (MAA)
- Copies of passports or Singapore national identification cards of all the company directors
- Proof of residential addresses of the directors and ultimate beneficial owners of the company
Sprout With Us
Sprout understands regulations in Singapore and can provide you with resources and guidance or even secretaries and accountants who are well versed in the legal requirements of conducting an incorporated business in Singapore—just getting started with the task of expanding your business. After company incorporation, a company involves a significant amount of administrative effort. You don't have to accomplish everything by yourself if you'd want to start building your business right away.
Contact us if you need more clarification on what goes on after you finally incorporate your company!