What is Company Registration in Singapore?
In Singapore, there are certain requirements which must be full filled in order to incorporate a company. With a team of professionals we can help in setting up Singapore Corporation. In Singapore, self-registration of a new company is not permitted for foreigners.
To register a new business the most common way is to create private limited liability company. It is a separate legal entity and provide shareholders protection from debts beyond the amount of capital they contribute. In Singapore, Company is incorporated as per the rules prescribed under Singapore Companies Act. If we talk about the eligibility then anyone above the age of 18 can proceed for incorporation. The most efficient tax structure is provided under this type of Company incorporation.
Here are the following benefits of company registration in Singapore
- To take advantage of Singapore Double Tax Agreements,enjoy Singapore tax resident status, tax exemption schemes and tax incentives such as the Productivity and Innovation credit which incentive companies to improve their productivity by purchasing technology.
- Limited liability of Members.
- Only a foreigner or local entrepreneurs of 18 years old or above are allowed to register Singapore Company and for directors of a private limited companies, there is no age cap.
Requirements of Company Registration in Singapore
- Company Name
For new company name, one must obtain approval.
There is a requirement of at least one Resident Director who can be a citizen, permanent resident, or someone with a valid employment pass or dependent pass. As many local and foreign directors can be appointed. It must be ensured that they fall under the eligibility criteria and do not have any criminal record and record of bankruptcy. Directors need not to be a shareholder in a company.
In Singapore, in a Private Limited Company there can be shareholders between 1 and 50 who can be individuals or entities, whether local or foreign. After company incorporation shares can be issue and transfer to the shareholders. Company is considered as Exempt Private Company if in case private company has at most 20 shareholders. In such companiesno corporation holds (directly or indirectly) any beneficial interest. EPC will enjoy the benefit of audit exemption if the Company fulfilled the requirement of small company. There is a requirement of minimum of one shareholder. There is 100% foreign ownership allowed.
- Company Secretary
According to Section 171 of the Singapore Companies Act, there is a requirement of appointing qualified company secretary within six months of incorporation. Only a natural person living in Singapore is eligible to become a company secretary in Singapore whereas a sole director or shareholder is not eligible.
- Paid-up Capital
There is a requirement of minimum paid up capital of S$1 which can be increased at any time after incorporation.
- Registered Address
For company registration in Singapore there is a requirement of registration of local business address whether residential or commercial but not a post office. In Singapore, there is a scheme named Home Office Scheme under which, homeowners are permitted to conduct operation of small-scale businesses on residential premises. The same scheme is also applicable on HDB and private properties.
As Singapore companies have the most efficient tax benefits and best business reputations.
Following are the Singapore's tax exemptions and incentives:
- On first S$300,000 of annual profits, pay not more than 8.5 % tax and 17 % thereafter
- No dividend or capital gains taxes.
For Company Formation in Singapore Considerations for Foreigners
- The records of director and shareholder are public accessible on the fee of $5.50.
- Foreigners are forbidden to self-register a company in Singapore.
- If you do not live in Singapore but wants to setup company there then there is no requirement of Singapore visa. One can operate a company from anywhere in the world and using a visitor visa one can visit on short-term basis. But there is a requirement of local director living in Singapore.
- To locally operate the Company there is a requirement of Employment Pass or Entrepreneur Pass after obtaining this pass one will become the Company’s local resident director.