Incorporation Common Mistakes to Avoid

Incorporation Common Mistakes to Avoid

Published by Beaufort.SG

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Singapore is one of the most attractive destinations for entrepreneurs who want to startup a business in Asia. The city-state offers a stable political and economic environment, a pro-business legal system, a skilled workforce, and a competitive tax regime. However, incorporating a company in Singapore is not a simple process and requires careful planning and preparation. Here are some common mistakes to avoid when incorporating a company in Singapore:

Not choosing the right business structure

There are different types of business entities in Singapore, such as sole proprietorship, partnership, limited liability partnership, and private limited company. Each has its own advantages and disadvantages in terms of liability, taxation, compliance, and funding. You should choose the business structure that best suits your business goals, needs, and resources.

Not complying with the incorporation requirements

To incorporate a company in Singapore, you need to fulfill certain requirements, such as having at least one shareholder, one local director, one company secretary, a registered office address, and a minimum paid-up capital of S$1. You also need to register your company name with the Accounting and Corporate Regulatory Authority (ACRA) and obtain the necessary licenses and permits for your business activities.

Not hiring a professional corporate service provider

Incorporating a company in Singapore can be a complex and time-consuming process, especially if you are not familiar with the local laws and regulations. Hiring a professional corporate service provider can help you save time and money by handling the incorporation process for you. BEAUFORT.SG can do all of the above, and also provide you with other services such as Accounting, Tax Filing, Payroll, and Compliance.

Not planning for taxes

Singapore has a low corporate tax rate of 17%, but there are also other taxes that you need to consider, such as Singapore Goods and Services Tax (GST), withholding tax, stamp duty, and personal income tax. You should plan your tax strategy ahead of time and consult BEAUFORT.SG with their in-house tax professional to ensure that you comply with the tax laws and optimize your tax benefits.

Not protecting your intellectual property

Intellectual property (IP) is one of the most valuable assets of any business. It includes your brand name, logo, slogan, product design, invention, patent, trademark, copyright, and trade secret. You should protect your IP by registering it with the relevant authorities and enforcing your rights against any infringement or misuse.

These are some of the common mistakes to avoid when incorporating a company in Singapore. By avoiding these mistakes, you can ensure that your company is set up properly and legally in Singapore and ready to grow your business in the region.

Contact www.BEAUFORT.SG for guidance and support in navigating Singapore’s business environment.

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