Why You Need to Use a Secretary Company (RFA) When Registering a Company in Singapore
Singapore has an efficient company registration process and business environment, attracting numerous entrepreneurs and investors to establish companies. However, even though Singapore's registration process is transparent and convenient, there are still some complex legal requirements and compliance issues for individuals or companies without experience. Therefore, the Singapore government requires that company registration, especially those involving foreign shareholders and directors, must be completed through a secretary company (RFA, Registered Filing Agent). This article will explore why you need to operate through an RFA secretary company when registering a company in Singapore, and the many benefits it brings.
1. What is an RFA (Registered Filing Agent)?
RFA (Registered Filing Agent) refers to a secretary company, corporate service provider, or registered filing agent certified by the Accounting and Corporate Regulatory Authority (ACRA) of Singapore, qualified to handle company registration and compliance reporting for enterprises. The responsibilities of an RFA are not limited to submitting company registration applications but also ensuring that the entire registration process complies with Singapore's laws and regulations.
RFAs are also known as secretary companies or corporate service providers. They not only provide critical support during the initial establishment of a company but also help enterprises fulfill a series of legal and financial compliance obligations during operations.
2. Why Do You Need to Find an RFA When Registering a Company in Singapore?
1. Legal Requirements and Compliance Assurance
To ensure the legality of company registration and operations, the Singapore government mandates that all company registrations involving foreign shareholders or directors must be conducted through an RFA. This is because RFA companies possess professional legal knowledge and can ensure that companies comply with Singapore's company law and regulations during registration and subsequent operations. By registering through an RFA agent, you can ensure your company operates smoothly on the basis of complying with all legal requirements.
2. Ensuring Identity Verification and Anti-Money Laundering Compliance
As a preventive measure, the Singapore government requires all company registration processes to strictly comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. RFA companies are responsible for verifying the identities of company directors and shareholders to ensure there are no violations or criminal backgrounds. Especially when involving foreign investors, RFAs will verify the identities of individuals and companies to ensure new companies will not be used for illegal activities. This regulation effectively prevents money laundering, fraud, and other illegal activities.
3. Providing Local Director and Company Secretary Services
According to Singapore law, companies must have at least one local director and one company secretary. For foreign enterprises or individual investors, they may not have the ability to find local directors or qualified secretaries. RFA agency companies can provide you with qualified local director and company secretary services to help you easily meet these requirements. Additionally, the company secretary is responsible for compliance matters such as annual reporting and shareholder meeting records.
4. Local Registered Address Services
Singapore's company registration regulations require companies to provide a valid local registered address to receive government documents and notifications. If you don't have a local office address, RFA agency companies can typically provide registered address services. This not only helps you complete registration but also ensures proper management of correspondence and documents during subsequent operations.
5. Simplifying Complex Registration Processes
Although Singapore's company registration process is relatively efficient, handling the details during registration can become complex and cumbersome for businesses or individuals unfamiliar with Singapore's laws and systems. RFA agency companies can handle all the procedures required for company registration on your behalf, from submitting applications to processing documents, helping you avoid unnecessary troubles. Additionally, RFA agents are familiar with ACRA's requirements and processes and can quickly and accurately handle company registration matters, avoiding registration delays due to incomplete materials or incorrect information.
3. Additional Services of RFA Agency Companies
Besides helping enterprises register companies, RFA agency companies can also provide a series of subsequent value-added services to ensure companies can operate legally and compliantly in the long term.
1. Annual Reporting and Compliance Management
In Singapore, companies must regularly submit annual financial reports and shareholder meeting records to ACRA. RFA agency companies can help enterprises handle these annual reports, ensuring enterprises fulfill their legal obligations on time and avoiding fines or legal penalties due to late submission or missed reports.
2. Financial and Tax Services
RFA agency companies can typically provide services such as financial statement preparation, tax filing, and auditing for enterprises, ensuring the company's financial records comply with regulatory requirements and saving tax costs for the company. This is particularly important for foreign companies, as RFAs can help them understand and comply with Singapore's tax policies.
3. Business Consulting and Legal Compliance Services
Some RFA agents also provide business consulting services to help enterprises develop business plans, handle shareholder agreements, and ensure companies operate compliantly in the changing legal environment. These services are particularly important for companies planning to expand their business or enter new markets.
4. Advantages of Using an RFA Agent
1. Saving Time and Effort
Through an RFA agent, you can save considerable time and effort, avoiding dealing with complex registration procedures and legal requirements. Professional RFA companies are familiar with all processes and can quickly resolve any issues, allowing you to focus on your company's core business.
2. Reducing Risk
RFA agency companies have extensive legal and compliance experience and can ensure every step in company registration and operations complies with legal requirements. This not only reduces the risk of non-compliant operations but also avoids potential legal issues caused by unfamiliarity with local laws.
3. Long-term Compliance Assurance
Company registration is just the first step; subsequent compliance management is equally important. Through RFA agency companies, enterprises can continuously receive services such as company secretary services and annual reporting support, ensuring the company always complies with Singapore's legal regulations.
Conclusion
Registering a company in Singapore is not simply a matter of "filling out forms," especially for companies involving foreign shareholders and directors, where compliance with Singapore laws and regulatory requirements is crucial. By registering through an RFA agency company, you can not only ensure the smooth completion of the registration process but also provide long-term legal and compliance assurance for your enterprise. If you plan to register a company in Singapore, choosing a professional RFA agency company is undoubtedly the best way to ensure compliant operations of your company.
