Why Register Your Company in Singapore?
Singapore, located in Asia, is one of the world’s fastest-growing economies, making it an ideal hub for enterprises wishing to expand their operations in Asia. Singapore ranks second in the Ease of Doing Business index. It provides a hospitable environment for investment and commerce, in addition to a favorable business climate. Furthermore, Singapore has one of the lowest corporation tax rates, which is advantageous for business owners wishing to establish a business in a tax-efficient location. There are various advantages to consider registering your business in Singapore.
Strong Economy
The country has experienced rapid growth and development. Singapore has a strong economy because it has used its resources wisely. This is why so many entrepreneurs have set up shop in Singapore.
Attractive Taxation Scheme
Singapore’s corporate tax rates range from 0% to 17%, which is very low compared to other developed countries.
Double Taxation Avoidance
Singapore has bilateral double tax avoidance treaties with over 50 nations. Double taxation avoidance agreements guarantee that transactions between Singapore and treaty countries don’t include double taxes.
Seamless Incorporation & Operation
Singapore Company Registration is straightforward. You don’t have to fill out complicated paperwork.
Pro-Start-Up Environment
Singapore has adopted a number of tax incentives and in-kind assistance schemes to encourage growth and innovation.
World-Class Infrastructure
Singapore boasts a world-class infrastructure which is a boon to businesses. It has helped to increase productivity.
How to Register a Business in Singapore?
Step 1: Decide on a Business Name and Reserve It
The first step for opening a company in Singapore is to choose a name for it. The chosen name must be unique, meaningful, easy to read, and free of vulgar or offensive language.
To verify with the Accounting and Corporate Regulatory Authority (ACRA) if a business name is available, a minimum of three names must be submitted. Upon approval and availability of the business name, it will be reserved for 60 days from the date of application.
If you want to register your business with Positive Zone, we will choose a name for you and ensure that it complies with ACRA rules. We will seek approval of your selected name. If your selected name is not available, our experts will look for alternative options.
Step 2: Decide the Corporate Structure
The next step to incorporate a company in Singapore involves deciding the form of business you wish to incorporate. To register a company in Singapore, you have the option of setting up a Private Limited Company, a Sole Proprietorship, or any other form of business. A Private Limited Company in Singapore is the most commonly used business structure.
At Positive Zone, we will recommend the best business structure based on the needs and preferences of your organization.
Step 3: Prepare the Necessary Documents
The third step in company incorporation in Singapore is to prepare the appropriate papers to establish a company in Singapore, such as Articles and Memorandum of Association, etc. The essential paperwork must be signed by each shareholder, and the company’s directors must be approved by the Company Registrar.
At Positive Zone, we will assist you in gathering the essential papers and ensure that they are properly prepared so that the registration procedure runs smoothly.
Step 4: Register Your Company
The final step to incorporate a company in Singapore is to file an application for incorporation with ACRA. Once all of your paperwork is in place, you can file an application for incorporation with ACRA.
Positive Zone will submit the paperwork for incorporation and track the status of your application to ensure that the registration process is completed as soon as possible.
Step 5: Accounting and Corporate Regulatory Authority (ACRA)
We will promptly collect your incorporation documentation, including the company profile and certificate of incorporation after your firm has been registered in Singapore. Afterward, we will deliver the documents to you.
The Accounting and Corporate Regulatory Authority (ACRA) will include the business’s name, establishment date, and an identification number called the Unique Identification Number (UEN).
The business’s profile includes information about the firm, including its name, registration number, formation date, primary business activities, and other details.
Step 6: Obtain Licenses and Permits
Once the company has been incorporated, it will have to obtain different business licenses and certificates to engage in business activities.
Depending on your business activity, we will apply for various business licenses and permissions after verifying the requirements with the relevant government agencies.
Step 7: Registration for GST
Only businesses in Singapore that have yearly revenues of more than S$1 million are obliged to register for GST.
When a firm’s taxable revenue during the previous year exceeded S$1 million or when it anticipated exceeding S$1 million in taxable revenue in the following twelve months, it is mandated to register and collect GST.
On your behalf, we shall submit an application to the Inland Revenue Authority of Singapore (IRAS) for GST registration.
Step 8: Open a Business Bank Account
After the firm has been established, you can establish a business bank account in Singapore.
We’ll choose the best bank for you based on the requirements of your company. With us, you can open a bank account 100% remotely and you don’t need to travel to Singapore to open a bank account.
Documents Required for Company Registration in Singapore
The required documents for company registration in Singapore may vary depending on the type of company you want to establish.Generally, for company formation in Singapore, you will need to submit the following documents:- Passport copies and visa copies of all shareholders and directors.
- Address verification for all directors and stockholders.
- A copy of the trade name reservation certificate.
- A copy of the initial approval from the Accounting and Corporate Regulatory Authority (ACRA).
- A copy of the leasing contract/tenancy contract for the company’s office space.
- A no-objection letter (NOC) from the landlord or property owner.
- Proof of payment for the initial approval, trade license, and other fees.
- Company stamp.
- A bank reference letter for all shareholders.
- Proof of share capital deposit in a Singapore bank.
- Board resolution authorizing the shareholders to establish the company and appoint directors.
- Power of Attorney for the company’s legal representative.
- Statement of Good Standing (if the shareholder is an existing company).
It is essential to note that some documents might need attestation or notarization. Additionally, some documents may need to be translated into English by a professional translator.It is recommended to seek professional assistance from our experts at Positive Zone to ensure all required documents are provided and in the correct format for company registration in Singapore.Types of Business Entities for Company Registration in Singapore
The most popular legal entities in Singapore are Limited Liability Companies (LLCs) and Branch Offices. You can also establish a liaison office, also known as a representative office, which serves as a marketing and administrative center for the main firm.Let’s gain a deeper understanding of these entities:1. Private Limited Company (PLC)
A Private Limited Company (PLC) can have up to 50 investors. It offers both tax deductions and incentives, making it the most popular alternative.
The majority of businesses incorporate as private limited companies for the following reasons:
- A private limited corporation has a distinct legal identity from its stockholders and directors, enabling it to sign contracts, and file and respond to lawsuits under its own name.
- By selling shares, it is simple to change ownership of the business.
2. Limited Liability Company (LLC)The Limited Liability Company is a flexible choice for business owners who want to create a partnership but retain their legal identities distinctly.Advantages of a Limited Liability Company:- Provides limited liability.
- A Limited Liability Company is regarded as a separate legal entity.
Disadvantages of a Limited Liability Company:- The biggest disadvantage of an LLC is the substantial amount of compliance obligations.
3. Subsidiary CompanyA subsidiary company is an associate of a parent corporation with its own legal entity. The subsidiary is overseen by its board of directors and may have operations similar or distinct from its parent firm. It must include at least one local representative.Advantages of a Subsidiary Company:- Because the subsidiary is a distinct legal entity, the parent company is shielded from its obligations.
- An overseas business may own all of the stock in the subsidiary.
4. Branch OfficeForeign companies can open a branch office in Singapore and be non-residents. The branch office is an extension of the parent company and is not a separate entity. A branch office must have a minimum of one local representative.Advantages of a Branch Office:- The branch office’s operations are entirely under the authority of the foreign corporation.
- Singapore provides a range of tax benefits for branch offices.
Disadvantages of a Branch Office:- The branch office’s obligations are shared by the parent firm because it is not a separate legal entity.
- A branch office is only permitted to conduct the same kind of operations as an overseas corporation.
5. Representative OfficeA representative office can be formed for a maximum of three years, making it an endless organization. Foreign enterprises are only permitted to study the Singapore market in this fashion; they are not permitted to offer products or services for profit.Advantages of a Representative Office:- Compared to other forms of legal organization, a representative office has affordable operational expenses.
- A representative office can help a foreign business build its reputation and create its presence in Singapore.
Disadvantages of a Representative Office:- A representative office is not allowed to carry on operations, sign agreements, transport goods, or provide services.
- A representative office is only intended to be used for promotional purposes or market research.
6. Variable Capital Company (VCC)
The VCC is an exciting financial vehicle that is a great investment for Singapore. The VCC is an anticipated vehicle to register due to its incredible versatility.
Tax Structure for Setting up a Company in Singapore
The tax system of Singapore is renowned for its favorable business and individual tax rates, tax relief initiatives, and lack of a capital gains tax.An entrepreneur in Singapore who runs a business there is required to pay the following business taxes:- Corporate Income Tax: Business income is subject to a tax at a rate of upto 17%.
- Goods and Services Tax (GST): For supplies of goods and services made in Singapore by taxable individuals in the advancement of their businesses, as well as for imports entering Singapore, GST is levied at 9%.
- Property Tax: Owner-occupied and non-owner-occupied residential structures are subject to progressive property taxation rates. The tax rate for all additional real estate is 10% of the yearly value.
- Stamp Duty: Stamp Duty is charged on business and legal papers pertaining to stocks, shares, and real estate.
Opening a Corporate Bank Account in Singapore
Singapore businesses have a wide range of options for opening corporate bank accounts. The majority of banks in Singapore offer enticing options like international money transfers, online banking, card payments, and trade finance.
Before selecting a business bank for your Singapore company, there are a number of things to take into consideration, including service charges, interest rates, accessibility to customer service, data security, the efficiency and scope of financial support, and several other factors.
All banking organizations in Singapore are governed centrally by the Monetary Authority of Singapore (MAS), which is Singapore’s central bank.
With your Singapore company, you can receive and send hassle-free payments globally.
Registering a business with us will make it easier for you to open a bank account as we will complete the whole process electronically.
Additionally, you won’t need to travel to Singapore to open a bank account, which will save you time.
Advantages of Company Formation in Singapore
There are numerous advantages to company registration in Singapore:Aspects | Features |
---|
Tax Advantages | 0% Tax Capital Gain |
Payment Options | Send and Receive Instant Payments |
Internationally Recognized | International Reputation |
Timeline | 3 – 5 Working Days |
Local Registered Address | 100% Remote Process |
Shareholders can own a company in Singapore. They invest in it to get a return on their investment in dividends and growth in the company’s value.Note: Foreigners can own 100% of the Singapore company.Vibrant Startup Ecosystem
Singapore was named the World’s Freest Economy in 2020 and has consistently maintained a high economic freedom score, making it a business hub for various companies and startups. Starting an enterprise in Singapore provides additional benefits from government assistance, making the process easier.Special Tax Benefits
While high corporation tax rates in other parts of the world may be an issue for some companies, Singapore offers an attractive tax structure for corporations, with tax rates ranging between 0% and 17%.Additional benefits include:- Tax-free dividends
- No capital gains tax
- Tax credit pooling
- Unilateral tax credit
- Tax withholding reductions on income from foreign sources
How Long Does it Take to Register a Company in Singapore?
The process to register a company in Singapore involves several stages, each with its own timeframe. It’s important to note that certain timelines can be influenced by your actions; for instance, if you take more time to gather required information, the duration of specific steps might be extended.- Providing corporate structure information and associated documents: 1 hour to 1 day (depends on the client)
- Company Name Reservation with ACRA: Less than 1 hour
- “Know Your Client” (KYC) checking by Positive Zone’s service provider as required by law: 1-2 days
- Client approval and signatures on the document set: 1 hour to 1 day
- Preparation of a set of incorporation documents: 60-90 minutes
- Affiliation with ACRA: 60-90 minutes
How Positive Zone Will Simplify This for You!
- We will help you choose the company name and submit it to ACRA for approval.
- Based on your business needs, we’ll pick the most appropriate organizational structure for you.
- We will compile the paperwork needed for business registration and verify it with the appropriate government authorities.
- We will register your company with ACRA and submit the necessary documentation.
- We will choose a director and a company secretary for your business.
- Additionally, we will set up a bank account and register your company with the tax authorities.
Conclusion
With a strong working-class population and favorable corporate tax rates, Singapore is one of the most attractive regions for business setup for individuals from the subcontinent.
The country’s largest port facility makes it a valuable hub for exporters.
This is where the experts of Positive Zone come in. We help you not just with a blueprint but also with incorporation laws and ideas for setting up your business in this thriving region. Get in touch with our business professionals to register your business in Singapore today.