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Singapore is an island city-state off southern Malaysia, is a global financial center with a tropical climate and multicultural population. Singapore’s national regulator of Business entities and public accountants is the Accounting and Corporate Regulatory Authority (ACRA). It is a statutory board that oversees the regulation of Companies and public accountants in Singapore and facilitates the development of Companies. It is vested with the power to impose fines and issue court orders and also on the ongoing compliance requirements as under the Companies Act. Here in this article, we will talk about Company Incorporation Process in Singapore.
Singapore is considered to have political stability and also a pro-business policy which attracts a lot of investors in Singapore. Apart from this, Singapore provides the entrepreneurs with relatively good benefits from and around the world which helps the start-ups to come up and company incorporate in Singapore. The Singapore law does not allow foreign individuals or foreign corporate entities to self-register a Singapore Company. There is a swift and fast incorporation process. Singapore is on a drive to nurture a transparent business climate which is attractive, useful and comprehensive for business owners, investors, and shareholders. Companies can view the ongoing compliance requirements as beneficial to their companies and business operations as well. ACRA has recently implemented XBRL system which has helped in the assessment of financial performance.
Private Limited Company: this is the most common type of Company formed in Singapore. Unlike the Sole Proprietorship and Partnership, it as the separate legal status from the shareholders and the Directors who have limited liability for the debts and losses of the Company. It can own properties in is the name. Words like Pte Ltd is required to be in the part of its name. The main features of a Private Limited Company are:
Shelf Companies: there is one more type of company in Singapore that is shelf Company. The basic feature of Shelf Company is
Limited Liability Partnership: is a blend of partnership and Private Limited Company. A Limited Liability Company gives the owners the flexibility of operating as a partnership while having a separate entity like of a private Company. It is considered to be suitable for the individuals engaged in professional services such as lawyers, architects, accountants, and management consultants.
The basic feature of a Limited Liability Partnership is:
The process of Incorporation in Singapore involves:
The Singapore registered company enjoys attractive tax exemptions and has great incentives. The Company pays less than 9% for the first S $3,00,000 the Company’s make in annual profits followed by a flat rate of 17% flat thereafter. In the case of Singapore Companies, they are not supposed to pay capital gains or dividend taxes. The Companies of Singapore are required to submit the annual tax returns to the Inland Revenue Authority of Singapore (IRAS). The time to submit audited or unaudited accounts is on 30th November annually. Singapore adopts the preceding year basis taxation. The profits of the financial year in the preceding year forms the basis for the filing the tax return in the current year.
Singapore is thus considered as a premier international business center and has unprecedentedly achieved growth and socio-economic development. Singapore has been an incredible jurisdiction for offshore company formation offering higher reliability and security to the investors through a flexible regulatory framework. Singapore actively encourages foreign investment and offshore activities through the board of investment. The government has introduced a wide range of incentives to attract foreign investment and consolidation of the legal and fiscal framework making it modern and friendly legislation attracting thousands of offshore entities.