ACRA has the ability to deny the incorporation of any company in Singapore for any valid reason. Among the reasons deemed to be valid for such denials to take place include violations related to company name, shareholders, and registered address. Such matters must be properly addressed before ACRA may provide its approval.
Many people have chosen to incorporate a company in Singapore. This fact is to be expected for various reasons. The country has always been open to the establishment and incorporation of new businesses, and this openness has facilitated its economic growth. It is also home to some of the lowest corporate tax rates in the world; thus, business owners will be able to pay a lower amount of tax money just by selecting Singapore as the location in which the company will be incorporated. The government of Singapore has also created several policies and introduced certain programs which provide many benefits to business owners all over Singapore. Therefore, there are many advantages to incorporating a company in Singapore.
However, not everyone who attempts to have a company of their own incorporated in Singapore will be able to experience such being the case. There are many cases in which incorporation of a Singapore company can be denied by the relevant authorities. Such denials take place if any errors or offenses are committed by the prospective company owner during the process of incorporation.
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Reasons for Rejection of a Company’s Incorporation in Singapore
One potential reason why a Singapore company’s incorporation could potentially be denied is if its name has not received due approval from the Accounting and Corporate Regulatory Authority (ACRA), the government body which is in charge of all company incorporation which takes places in Singapore. In order for a Singapore company’s name to receive due approval from ACRA, the name is not permitted to be the same as that of an existing Singapore company. Thus, it is a necessity for the company name which is used to be a unique one. The name which is to be selected must also not be in violation of any trademarks and their accompanying regulations. Any approved name must also be neither vulgar nor obscene so that customers from all walks of life will be able to have access to the company in question. The name which is to be used must also not have already been reserved by another company. This is because the first company to register a particular company name in Singapore, should the name receive ACRA’s approval, is granted the right to use that name.
Another potential reason why a company incorporation in Singapore could be denied relates to the number of shareholders of the company. The shareholders of any company in Singapore may either be people or corporate entities. If the company to be incorporated is a private limited company, the Companies Act mentions that the company ought to have a number of shareholders which is between one and 50; the failure of the company to adhere to this requirement will cause the company’s incorporation to be denied by ACRA.
Every company in Singapore is also required by law to have a registered address which is located in Singapore. This address is not allowed to be a post office box. The purpose of the registered address is to serve as a location in which all of the company’s statutory documents will be stored and maintained. Therefore, a registered address is important due to statutory compliance requirements. For this reason, the attempted incorporation of a Singapore company without a registered address in Singapore will be denied.
Now that you have read several paragraphs about reasons why a Singapore company incorporation could possibly be denied and the steps which ought to be taken in order to prevent such a denial from taking place, perhaps you would like to set up a company based in Singapore yourself. We at Paul Hype Page & Co will certainly provide you with high-quality services and solutions in order for your Singapore company to be established and incorporated. We will even assist you by providing suggestions on the best ways in which you may run your company after the process of its incorporation has been completed.