The small sovereign island city-state of Singapore in Southeast Asia has dominated the business world in the past decade. Singapore currently boasts at least 400,000 registered business entities, making it one of the world’s most vibrant and solid economic territories.
Today, Singapore’s economy enjoys virtually zero foreign debt because of its very high government revenue, largely thanks to its productive business entities. The many driving forces of Singapore’s economy include financial services, electronics manufacturing, exports, tourism, and trade with the world’s busiest seaport.
Why is Company Registration Important in Singapore?
For a business to prosper in Singapore, it must first be registered with the government. In Singapore, an entrepreneur’s most common vehicle is the corporate entity, which can only be achieved through business or company registration. The process of incorporation can go a long way in helping businesses acquire resources and launch their ideas into reality. But for any new business venture, the key to success is always timing.
The process of company registration in Singapore is crucial to creating your brand. With a solid company name reserved for your registered business means you’ll have an easier time keeping all your advertising and branding consistent. Aside from branding, however, registration is important for your business to legally operate.
While it is possible to claim a business name in Singapore without registration, as indicated in Section 5 of the Business Names Registrations Act, not registering your business might limit your capability to acquire necessary permits and licenses integral to your business’ operation.
Thus, all businesses must register with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
Why Is It Important to Register a Business Early?
There are many advantages to registering your business early. Here are some:
- Name Protection: Early business registration will help a business secure an original company name for branding. After registration, the business owner can further protect the brand name or the business name by registering it for a trademark.
- Legal Agreements:Different legal agreements can only be signed and be effective if the business entity is established and registered.
- Intellectual Property:The ownership of intellectual property for a business is important to avoid any disputes currently and in the future about the ownerships of assets and intellectual property.
- Equity Ownership:A business can establish a bigger equity stake if they register their business early before the value has been built into the business.
Can Registering your Business Attract Industry Talent?
Registering your business will smooth its operations and help establish branding. A successful business is a visible business, and this is bound to attract a talented pool of qualified candidates looking for reputable companies to work for. A business compliant with the laws and guidelines required of them by the regulatory authority should offer employees proper compensation, protection, and benefits. This should increase your candidate pool when It comes to hiring.
Does Registering Build Reputation & Prestige?
A registered company suggests that the group or entity behind it has a permanent commitment to responsible and effective management in accordance with the law.
Companies with Ltd., Ltd/GTE, or PLC at the end of their names broadcast a trustworthy image. These terms signify that the companies bear majority responsibility for any debt incurred and that shareholders only have limited responsibility.
Final Thoughts
The process of company registration in Singapore has been designed to be simple and efficient to encourage businesses to function in accordance with the law. If you require extra help, many firms offer a wide array of corporate services that can assist you with company registration.
