The process of incorporating has been made simpler in Singapore that encourages full obedience by the companies. The management must be aware of the activities after incorporation for avoiding penalties or punishments. Some significant actions to be taken after incorporation:
- Board First Meeting
- Bank Account
- Company Seal
- Share Certificate
- Statutory Registers
- Business Insurance
- Financial Year End (FYE)
- Accounting System
- Official Address
Once you’re done with tasks then your company can start operations. You may be confused about how to fulfill these tasks? Don’t worry, Bestar Services provide the best company incorporation services in Singapore. Want to know how we do it? Then, keep reading on.
Board First meeting
A company must hold a meeting with the Board of Directors within 30 days after the date of incorporation. In this meeting, the directors must pass the resolution regarding the organization of the company. The meeting can be attended either in person or videoconferencing. The points to be considered:
- Certificate of incorporation
- The registered office of the company
- The decision of Financial Year End (FYE)
- Maintain statutory registers
- Choosing an auditor/ a CEO
- Print of shares certificate
- Open a current bank account
- A general authorization for deciding daily affairs
- Bank Account
After the company incorporation, You must arrange the bank account opening. Every financial center of Singapore offers a wide range of services like treasury services, banking, insurance, and investment banking. Usually, opening a local bank account is sufficient for one to conduct a business. Opening a corporate bank account is easy, further, the documents bank ask for are:
- Board resolution
- Identity proof of beneficiaries
- Company constitution
- Ownership agreements
- Business license
They may even ask for account signatories to be present physically. However, remote meetings are also arranged in the current Covid-19 situation, subject to the individual bank practice.
A company seal is an official stamp used by a company, mainly for two purposes:
- Documents to be executed as deeds, referred to as official documents of the company
- Specific corporate documents including loan documents, share certificates, company constitution, statutory registers, and so on.
It leaves an embossed impression too. The seal should be kept by the secretary. Whenever it is taken for use the seal must have countersigned by at least 1 or 2 directors.
Issuance of share certificate shall be done within 60 days from the date of incorporation. This certificate is issued with the aspect of evidencing the owner of shares stated in, every shareholder must be in possession with the issued certificate. Moreover, this certificate is kept in the seal and can be used when countersigned by at least 1 or 2 directors. According to the aspects of business having a share certificate is most important, make sure the company you’re choosing for incorporating your business must provide every company incorporation services.
The Board of Directors is required to appoint at least one auditor within 3 months from the date of incorporation. According to the Accounting and Corporate Regulatory Authority (ACRA), only accountants or accounting firms can play the role of the auditor. Also in Singapore, current companies have a choice to not keep an auditor, for that they have to maintain criteria:
- Total assets for the financial year must not be more than S$ 10 million
- Total company revenue must not be more than S$ 10 million
- Full-time employees should not exceed 50 whenever the final year ends
A company must maintain a statutory register at its Singapore registered office. The register contains a record of shareholders, directors, loans, expenses, and deposits, etc. This document is a public document and can be accessed anytime. Why is it necessary to maintain statutory registers appropriately?
To keep noting the transactions made by business
- For good corporate governance and to avoid penalties
- If someone missed the minutes of the meeting then they can access it anytime
- To know about the profit and loss of the business
CEO (Chief Executive Officer)
A person who manages and conducts the business operations is referred to as CEO. An incorporated company can appoint a person or group of CEO if required. Also, take a note that if any changes are made then the company is supposed to inform the Accounting and Corporate Regulatory Authority (ACRA) within 14 days of the change or appointment.
After successful company registration in Singapore, you must apply to get general liability insurance, workers’ insurance, and other specific insurance applicable to your business. To help you in these processes, appoint an insurance broker. As your business expands, the insurance also expands. Along with the best Singapore company incorporation services, we assist our clients to find a convenient and reliable insurance broker.
Financial Year End (FYE)
The term “FYE” refers to the completion of 12 months or 18 months accounting period; months depend upon the resolution made by the Board of Directors. Take note that FYE cannot exceed 18 months from the month of incorporation. Every FYE companies are supposed to state their financial statements to get it reviewed for statutory deadlines for the AGM, tax filing, annual return filing, etc. Further, for changing FYE the company shall apply at ACRA.
Maintaining accurate transactions of the company is compulsory. Doing so will assist you in monitoring your business profitability and tax regulations. How can we maintain an accurate transaction? All you need to do is, set up an accounting system that can assist you. As a start-up being familiar with the accounting system is not possible. So what to do? In such instances, look for offshore company incorporation services providers, such as Bestar Services. Our trained team is well-experienced enough to set up an accounting system for your company at its finest. Additionally, it reduces the learning time, thus, you can concentrate on other activities.
Registering an official address within 15 days from the commencement of incorporation shall be done. This is the address where you can communicate with several authorities officially. Make sure the address must be accessible and operational during office hours. If you are changing your address, then do notify ACRA within 14 days of the date change.
The need for compliance management is increasing as per the post-incorporation requirements. If you could not manage the requirements before starting any operation then there is a high risk of getting penalties. For that, you must fulfill all the actions mentioned above to avoid penalties and punishments. To know more, you can contact us!