Incorporating your company is just the first step in your entrepreneurial journey. You may be surprised to learn that there are specific responsibilities you have to fulfil before you can begin your daily operations. It is crucial for you to know what these duties are so you can start running your business as soon as possible. Therefore, let us share the five post-incorporation requirements your organisation needs to meet to comply with Singapore’s business regulations.
1. First board meeting
After your company is incorporated, one of the first few things you should do is to hold an initial board meeting. There are several urgent matters the shareholders will have to decide on during this first session.
These issues include:
- Adopting the use of a company seal.
- Adopting the constitution that oversees the internal operations of the business.
- Authorising the issuance of company shares and various other securities.
- Appointing the top-level executives.
- Appointing an auditor if required.
- Confirming when the first financial year ends.
- Confirming the registered address of the company.
- Making the banking arrangements.
- Taking care of additional business needs.
2. Opening a bank account for the company
To conduct business in Singapore, your company needs to open a local bank account. There are plenty of international banks you can choose from in the country. However, before you can open a corporate bank account, you have to submit several documentations, such as the company constitution, an authorised letter from the board, and identity proof from the company’s beneficiaries. Therefore, it is advisable to prepare the relevant documents beforehand to streamline the process.
3. Issuance of share certificates
A share certificate is a legal document certifying the ownership of a specific number of shares in one company. It is mandatory for all registered corporations in Singapore to issue this certificate to their various shareholders. This document must be endorsed with the company’s seal and signed by at least one director and the secretary or two directors.
4. Setting up the statutory books
Every corporation is required by law to maintain its statutory books. These books are the legal records of your company. Therefore, it is the responsibility of the business to ensure the information within is accurate and up-to-date.
As a rule, the books must contain:
- Up-to-date information about the registrable controllers and corporate officers.
- A list of the company’s shareholders, the number of shares everyone owns, and details of any share transfers if applicable.
- Resolutions and minutes from the corporation’s AGM meetings.
- Details about fixed or floating charges and debentures utilised to secure company loans.
5. Determining the company’s financial year-end
Determining your company’s financial year end (FYE) date should be at the top of your agenda once your business is incorporated. This date is up to the shareholders’ discretion. However, the organisation’s financial year duration cannot be more than 18 months from the year of incorporation. This decision is crucial as it will determine when your corporate filings and taxes are due.
Filing your corporate taxes accurately and within the stipulated timeframe is critical to ensure your business does not incur additional penalties. At Ackenting Group, we provide a suite of tax and accounting services to help you plan your company’s taxes so that you can rest easy when reporting season arrives. In addition, our seasoned accountants can provide you with sound advice on your tax incentives to ensure you earn greater savings for your business. We also offer a wide range of corporate services to meet your business needs, including quick and easy incorporation services for entrepreneurs looking to start a business venture in Singapore.
Conclusion
There are various responsibilities that come with running a business. Incorporating your company is merely the beginning. The list we have shared is by no means exhaustive, but it should give you an idea of the administrative work required to set up a company. It is essential for you to take care of these post-incorporation tasks for your new business promptly, so your organisation remains in good standing.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
