Overview of Company Registration in Singapore

Singapore is an island nation in the Southeast. It is rich in culture and heritage and has been a hub for corporate investments for a long time. Recognized as an "Asian tiger," this country is on the list of top growing economies in Asia. Corporate friendly schemes and digital enhancements make Singapore attractive place in the eyes of Investors. Singapore's strategic location in Southeast Asia makes trade and foreign exchange and export-import easier for this island nation. It has one of the most welcoming investment and trade policies. It also offers tax exemptions to start-ups and assists them with a variety of schemes in their initial days. It can be a complex task for foreigners to set up a new company in Singapore all by themselves therefore, we at Enterslice can guide you through the entire process and help in securing company registration.

Why should you register your company in Singapore?

There are a variety of reasons why you should register your company in Singapore. Some of the key reasons have been discussed below:

• Robust economy

Singapore boasts of a well-developed free market economy which is based on trade, finance and manufacturing. The country has grown and developed at a good rate. It has judiciously used its resources which has resulted in a robust economy for Singapore. Considering this many business owners have established their business in Singapore.

• Attractive taxation system

Singapore also has a very simple and rational tax system. No tax is imposed on capital gains or on dividends obtained from a business which makes the country lucrative for entrepreneurs who wish to register a new business. As far as corporate tax rates are concerned Singapore has created an appealing tax structure with corporate tax rates ranging from 0% to 17 per cent which is quite low when compared with other developed countries.

• Double Taxation Avoidance

Singapore has double taxation avoidance agreement with more than 50 countries. Double taxation avoidance agreements ensures that the transaction made between Singapore and treaty country doesn’t include double taxation. Singapore also provides Unilateral tax credits in case of countries with those countries with which it doesn’t have any such agreement.

• 100% Foreign Ownership

Singapore permits a foreigner to own 100% of the stock of the company incorporated in Singapore. Here any local partners or shareholder will not be required. There are also no restrictions on the amount of capital that one can bring in from their home country to invest in the Singapore Company. 

• Seamless Incorporation and Operation

The manner of Singapore Company registration is simple and straightforward. It is devoid of any complex paperwork.

• Pro-start-up environment

The Singapore authorities have adopted growth and innovation friendly policies for start-ups as it extends various tax incentives, in-kind assistance scheme to start-ups etc. The benefits have been granted to both local as well as foreign owned entities.

• World class infrastructure

Singapore has world class infrastructure facilities which is a boon for businesses there. The world class infrastructure has also helped in the improving the productivity in the business.

Different types of business structure available in Singapore

The following types of business structures are available:

• Private Limited Company

Private Limited Company is one of the option available with entrepreneurs. It is also one of the most popular options as it grants variety of incentives to the business.

• Subsidiary Company

A subsidiary company is a private limited company having its own legal identity which is independent of the parent company. Its majority shareholder can be based overseas or locally.

• Branch Office

Foreign firms can establish a branch office in the country and function as non-residents. However, branch offices don't have any tax benefits or tax deductions as in the case of other business structures.

• Representative Office

Representative office is a sort of a temporary structure through which foreign firms can only carry out market research and they cannot sell products or services.

• Sole Proprietorship

One of the simplest forms of business structure, sole proprietorship is not equivalent to a separately incorporated company, meaning the owner and business are treated equally. The business owner owns all the assets and liabilities of the business and no protection is provided to personal assets from various business liabilities and risks.

Prerequisites to consider for Company Registration in Singapore

1. Resident Director: There is a need for a resident director for incorporating a company in Singapore, foreigners are allowed to be directors of the company, but a resident director should be a member of the company's board. There is no requirement for a residential shareholding, but the company should appoint a company secretary on the board before applying for incorporation.
2. Company Secretary: Companies incorporated in Singapore need to appoint a competent Company Secretary to ensure regulatory compliance. Such appointment must be made within six months of incorporation.
3. Registered Address: A local Singapore address will be required which will be the company’s registered address. Such address must be a physical address.
4. Supply Chain Management: Supply chain management includes transportation, storage, and movement of the product manufactured/created in the business. Hence the officeholder should consider the company's location before making a decision.
5. Local competition: Every business must have knowledge about the local competitors. It increases the product awareness amongst the consumers of that area. Local competition is a double-edged sword for any new business as it reflects both customer base and competition.
6. Overhead costs:Costs other than the manufacturing of product service are overhead charges. Every area has some challenges that might reflect one way or another, and overhead expenses are different according to different regions in the world.
7. Local laws, regulations, and Tariffs: Every area has different taxes and tax rates. Businesses need to recognize these tariffs and make sure that they are compliant with every regulation set by the municipality or local authorities of the area.
8. Quality considerations: The concept of starting any business is to provide quality product/service to its customers, but the quest for quality is not limited only to customers but to creditors, employees, and all other people related to the company.

Documents Required

• Articles of Association;
• Shareholders’ identification and residential address details;
• Passport copies of shareholders;
• Resident Director’s address proof.

Process of Company Registration in Singapore

The following process is followed:

• Naming the Entity

The officeholders need to choose a name for their company. They have to keep in mind that such name should not be similar to any other name already registered into the Trade Register of Singapore and it should not contain any vulgar language. The name of the proposed company should be approved by the ACRA.

• Choose the Right Business Structure

Next, you will have to choose the right business structure depending upon the type of your business. Choosing the right business structure is critical for the company’s growth and the eventual success of your firm.

• File application along with supporting documents

You need to file the application for company registration with the competent authority along with requisite documents as mentioned above.

• Company is Registered!

After the company name is approved, application has been filed along with documents and if the authority is satisfied that all requirements have been duly met, it shall register the company.

Post-Registration Compliances

Once the company has been registered successfully, the following post-registration needs to be complied with:

• Open a corporate bank account

You will have to open a corporate bank account in Singapore with any of the local or international banks in Singapore.

• License and permits

In order to carry out certain business activities in Singapore, you need to obtain licenses/permits as it is regulated by government authorities. So although your company has been registered, still you need to obtain license or approval from the relevant government authorities.

• GST Registration

Goods and Services Tax (GST) is a tax which is imposed on the supply of goods and services in Singapore and on the import of goods into Singapore.

• Building a Website and Logo

For marketing the company digitally, it is advised that a business should create a website and logo in the name of the company. A logo adds distinctive ownership to the business's product and markets the product to the global audience. A website is appropriate for making the company available to prospective customers over the web.

From drafting to filing of all the necessary documents, we at Enterslice, are a team of specialised Chartered Accountants, Company Secretaries and Advocates that will assist you in every step in the Company Incorporation Process in Singapore. We will take care of the complete process and liaise with the Singaporean authorities to get your company registered.