Procedure of Company Incorporation in Singapore
Company Incorporation in Singapore political stability, pro-business policy, and various tax benefits are three key reasons why entrepreneurs from around the world prefer to incorporate startups companies in Singapore.
It is ranked as a 3rd wealthiest nation in the world by Forbes Magazine. It is also rated one in Asia for the quality of life. In addition to a unique and fascinating lifestyle and culture, Singapore has a tremendous amount to offer the international business community.
Benefits of Trading in Singapore
- Strategic Business Location: One major advantage of relocating the business to Singapore is its convenient location. Singapore is situated in the heart of Southeast Asia, making it possible for the business to access a market of 2.8 billion people within a few hours flight. Company Incorporation in Singapore’s port is one of the busiest in the world, and the country is classified as a premier International Maritime Center.
- Singapore Means Business: Singapore is known for its pro-business environment, capable of attracting sizeable foreign investments and business entrepreneurs. Here you can turn your ideas into businesses with ease, and achieve significant profits. In stark contrast to many Western nations, it only takes about 1-2 days to incorporate a company in Singapore, with the government providing assistance along the way. Simply stated, Singapore is the easiest place in the world to set up and operate it freely.
- Advances Tax System & Tax Haven Status: Taxes are at the top of the agenda for any entrepreneur, and one of the significant considerations for setting up a business anywhere in the world. One of Singapore’s unique advantages is its low effective personal and corporate tax rates. Personal income tax has a single tier system that starts from just 0% and goes up to 20% for income above S$320,000.
Likewise, an effective Corporate Tax Rate for company registration in Singapore Private limited companies for profits up to $S300,000 is below 9% and capped at a flat rate of 17% for profits above $S300,000. There are no capital gains taxes in Singapore, which follows a single-tier tax policy; for income that has been taxed at the corporate level, dividends can be distributed to its shareholders tax-free. In an effort to move away from a dependency on income taxes and to make the economy even more competitive, the government has adopted a more broad-based consumption tax system called Goods and Services Tax (GST). GST Registration in Singapore is necessary at all cost to incorporate the company.
- Flexible Immigration Policies: Singapore’s smooth Immigration policies facilitate the relocation of foreign nationals who wish to set up businesses here. If you are an entrepreneur who needs to relocate to Singapore to run your business or need to hire foreign professionals, the government has anticipated your needs and made appropriate Singapore work visa They can be even granted Permanent residency after certain approvals.
- Higher Quality Of Life: Singapore provides all sorts of its residents with excellent public and private transportation, top quality healthcare, a safe and healthy living environment, easy access to many other nations, excellent schools, an outstanding support system for businesses, entrepreneurs and corporations, and an endless selection of cultural and educational opportunities.
Types of Business Entities:
- Limited Liability Company: It is a Company Limited by Shares registered under the Singapore Companies Act. A Singapore LLC can be of following types:
- Private Limited Company
- Public Limited Company
- Public Limited by Guarantee
- Foreign Company Registration China options: A foreign company or an overseas company if wants to set up business In Singapore can go through the following options –
- Subsidiary Company
- Limited Liability Partnership: It is the most recent & advanced business structure in Company Incorporation in Singapore. It combines the features of Companies & Partnership & so embarks the good features of both for being a preferred medium. It is primarily meant for carrying out professional practice. It must have at least 2 partners & must be regulated by Company Incorporation in Singapore LLP Registration Guide.
- Provide for at least 3 Company names which should be approved by ACRA (Accounting & Corporate Regulatory Authority) before the incorporation process.
- One resident Director is required who should be more than 18 years of age. However, it is not necessary for them to hold shares in the company. Shareholders can be non-residents.
- Shareholders & Directors can be the same person.
- It is mandatory to appoint a Company Secretary in the Company within six months of incorporation according to the Singapore Companies Act.
- The official address for registered office in Singapore.
- Minimum capital criteria can range between 1$$ to 100$$.
- Singapore-registered entities enjoy attractive tax exemptions and incentives. Your company pays less than 9% for the first S$300,000 you make in annual profits, followed by a flat rate of 17% flat thereafter. They do not have to pay capital gains or dividend taxes.
- Name reservation of the Company from ACRA.
- Registration of the Company by the filing of the documents along with the application form.
- Generation of Incorporation Certificate along with the Business Profile of the Company in pdf format on the official mail.
- The opening of Bank Account of the Company.
- Application for Business License
- Name Application: 15$
- Registration Fees: 300$