Incorporating in Singapore is a good choice when deciding to enter the Asian market. Several factors point to Singapore as a standard business hub. It has an abundance of skilled resources, a productive and open economy, and strict intellectual property rights protection.
The geographic location of Singapore also gives it the advantage of having access to the whole population of Asia, particularly to other business hubs like China and Malaysia.
With one of the lowest corporate tax rates in the region, in addition to a host of other tax incentives, Singapore is one of the best countries in Asia to do business.
Why incorporate in Singapore?
As noted above, several factors contribute to the ease of conducting business in Singapore.
In addition to the points stated below, Singapore offers a highly facilitative environment for companies that are looking at new opportunities in Asia.
- Tax benefits
Singapore has business-friendly tax rates and an abundance of tax incentives to motivate the growth of businesses and entrepreneurship. Singapore’s government gives a variety of tax incentives for businesses such as Corporate Income Tax and Tax Exemptions scheme, so companies can benefit from tax exemptions and reductions if they are new startups in Singapore. The country also has Avoidance of Double Taxation Agreements in place with over 50 nations.
- Ease of doing business
It is easy to start a business in Singapore. The requirements for starting a company in Singapore are few. All it takes is the initial paid-up capital, as well as other basic requirements to fulfill.
- International talent pool
The talent pool in Singapore is highly educated and literate. Companies venturing into Singapore can be assured knowing that it has access to a such pool of talent.
Moreover, the favorable immigration systems attract a lot of global talent that you can recruit for your business.
- Government policies and ample assistance
Singapore is known as one of the most friendly-environment countries for businessmen and investors because the government has always improved its policies to support businesses.
Government agencies in Singapore work together to help businesses grow in the country. Also, the Singapore government has adopted various pro-innovation and entrepreneur-friendly policies in a bid to attract foreign startups.
What’s more, foreigners are free to register a Singapore company and can own 100% shares of the company.
Types of business entity In Singapore
When starting a business in Singapore, you must first specify the suitable company type. The most generally used business entities in Singapore are:
- Sole proprietorships: this is a business owned by one person. This type of business is simple but carries a little risk for its owner since the owner will be personally liable for the company.
- Private Limited Companies: this is the most scalable, advanced, and flexible company structure in Singapore. This company is limited by shares and has a separate legal entity from its shareholders.
- Limited liability partnerships: this is the most recent of business structures in Singapore where the individual partner’s liability is generally limited. An LLP is owned by at least two partners (individuals or body corporate) and is a legal entity separate from its partners.
All companies in Singapore must be registered with the Accounting & Corporate Regulatory Authority (ACRA) and acknowledge the Companies Act.
Steps to set up your company in Singapore
The processes for company formation in Singapore include choosing your corporate structure, assembling the required documents, and registering the business with ACRA.
Setup requirements to register a company in Singapore
- Company name
- Shareholders (individual or corporate entity) – Minimum of one,
- A Resident Director
- Resident Company Secretary
- Initial paid-up share capital of a minimum of S$1
- Registered address
The steps for registering a Singapore company
The first step in registering a Singapore company is deciding on the business entity.
Next, you had to get your business name authorized by checking the name availability on the ACRA site and reserving the company name. Once you have reserved the name, you will then have to fill out the particular government incorporation forms and prepare relevant documents such as the company constitutions.
Upon collation of the necessary documents, you can then proceed to incorporate the Singapore Company by filing all the information and materials with ACRA.
The documents required to register a Singapore company
Before you can register the company with ACRA, the company must provide the following documents:
- Description of business activities
- Shareholders and directors’ details
- Company Secretary details
- Memorandum and Articles of Association (MAA).
Also, ACRA mandates all Corporate Service Providers to conduct a Know Your Customer due diligence before they onboard a client.
Open a corporate bank account
After incorporating the company, you can open a bank account in Singapore with any of the local or international banks based there.
Post-company registration formalities in Singapore
Once the company is registered, you can then move forward to the post-registration activities which include:
- Licenses and permits: this is required if you engage in certain businesses in your corporation.
- Registered office hours: companies in Singapore must register office addresses and hours
- Registration number: ACRA will issue a business registration number which must be on all documents used for official business communications
- Customs registration: registering the company with Singapore customs is necessary if the business involves importing or exporting.
- Registration for Goods and Service Tax (GST): you must register for Goods & Services Tax (GST) if you expect the business’s annual turnover to exceed S$1 million.
- Register with Singapore Central Provident Fund (CPF): this is a mandatory pension fund scheme in which the employer and Singapore employees contribute a percentage of their monthly salary to.
Want to incorporate your company in Singapore?
The easiest and quickest way to register a company in Singapore is to enlist the help of an incorporation expert, e.g., Damalion.
Contact your Damalion expert now to set up your company in Singapore
