Common Mistake during Company Registration
First step to start entreprenuer journey is choose of company name .
Must avoid any name with confusing spelling :
Management may decide to have ABC SG Ptd Ltd instead of ABC Singapore Pte Ltd
Do not confuse registered address with mailing address .
Related article : Different type of address
Wrong type of Company
Most of us prefer to register company with limited liabilities
But company was registered as sole proprietor which company owner personal asset was exposed to risk.
Related article; Different between sole proprietor vs Pte ltd
Board of directors
Singapore registered Pte ltd company must appoint at least 1 director. Asked yourself is that more than 1 director is a must.?
Not every shareholder must be appointed as director. More director may cause administrative burden especially in signing director resolutions.
If company have more than 1 director it is important to ensure directors is aware of their responsibilities towards company and shareholders .
Shareholder is the person who invest into company.
It is generally not adviseable issue large amount of shares.
More shareholder means more fund to run the Company . To avoid any future dispute it is advisable to have proper shareholders agreement in place
Related Articles ; shareholder agreement vs company constitution
Share class / type of share
Ordinary share is most common shares in Pte ltd company, some company may include preference share .
Regardless type of share, please bear in mind that share represents ownership level in the company.so is important to consider how to structure it correctly.
WRONG TIMELY TO REGISTER
We all live in digital world now, you can register company anytime at anywhere.
But before you do so , following is your consideration point :
- If the newly registered company is subsidiary of Holding company, you must incorporate at the right time to have same financial year end.
- If the company principal activity is event planner.Then pandemic is NOT the right time to proceed.
- If newly Company is GST registered, then date of incorporation must be alight with GST reporting period.