Introduction
Singapore is located in Asia and is one of the world’s fastest-growing economies, making it an ideal hub for enterprises wishing to expand their operations in Asia. Ranked second on the Ease of Doing Business index, Singapore offers an unparalleled environment for entrepreneurs seeking to expand in Asia, combining profitability with simplicity in company registration.
What sets Singapore apart is its pro-business climate, supported by competitive corporate tax rates, efficient incorporation processes, and an extensive network of double taxation agreements. Entrepreneurs benefit from a stable economy, transparent regulations, and a flourishing ecosystem that helps both new and existing companies.
If you’re an entrepreneur eyeing growth in Asia, Singapore provides the ideal launchpad. From its favourable tax policies to seamless incorporation procedures, Singapore company registration can help entrepreneurs thrive in a competitive global market.
Through this article, we will cover the procedure for Singapore company formation. Furthermore, we will discuss eligibility, taxation structure, and the advantages of company incorporation in Singapore.
Why register a company in Singapore?
Here are some of the reasons that you should consider company registration in Singapore:
1. Strong Economy
The country has experienced rapid growth and development. Singapore has a strong economy because it has used its resources wisely. A strong economy will give your company a better opportunity to develop and thrive.
2. Attractive Taxation Scheme
Singapore company corporate tax rates range from 0% to 17%, which is very low compared to other developed countries.
3. Double Taxation Avoidance Agreement
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.
Read More: Singapore Double Taxation Avoidance Agreement
4. Seamless Incorporation & Operation
The procedure for company incorporation in Singapore is relatively simple. With the assistance of our professionals, the entire business registration process can be completed remotely without the need to complete any difficult paperwork.
5. Pro-startup environment
Singapore has adopted a number of tax incentives and in-kind assistance schemes to encourage growth and innovation.
6. World-class infrastructure
Singapore boasts a world-class infrastructure which is a boom for businesses. It has helped to increase productivity by facilitating trade and transactions between the nations.
How to Register a Business in Singapore?
In order to incorporate a business in Singapore. you must follow the steps mentioned below:
Step 1: Decide on a business name and reserve it
The first step for Singapore company registration is to choose a name. The name must be unique, meaningful, easy to read, and free of vulgar or offensive language.
A minimum of three names must be submitted to verify with the Accounting and Corporate Regulatory Authority (ACRA) if a business name is available. Upon approval and availability, the business name will be reserved for 60 days from the date of application.
If you want to register your business with OnDemand International, we will choose a name for you and ensure it complies with ACRA rules. We will seek approval of your selected name. Our experts will look for alternative options if your selected name is unavailable.
Step 2: Decide on 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. Our experts can help you register your Pte Ltd company in Singapore within a week.
Step 3: Prepare the necessary documents
The third step for company incorporation in Singapore is to prepare the appropriate papers to establish a company in Singapore, such as articles and memorandum of association, business address information, stockholder information, and so on.
We will notify you of the necessary documents, including those for the KYC due diligence required by Singapore regulations. We will collect the necessary documentation from you and verify it with the proper authorities to ensure that it is valid and meets all standards.
Step 4: Proceed with business registration
We will assist you with the procedure for company registration in Singapore by submitting a business registration application to ACRA and uploading the required documentation via the Bizfile+ platform.
We can expedite the business registration process for you. With us, you don’t need to be physically present to incorporate your company. We will help you register your company in Singapore remotely from any part of the world.
Step 5: Acquire a Certificate of Incorporation
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 certificate of incorporation 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: Register for GST
Your business has to register for GST in Singapore if your yearly revenues are more than SGD 1 million.
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 Singapore
1. Company Constitution- A company’s constitution in Singapore outlines the essential principles by which the corporation would be governed. It establishes the corporation’s goals and describes the rights, obligations, authority, and tasks delegated to the company, its board of directors, and its shareholders.
It contains information like:
- Business name
- An overview of business operations
- About the share capital and issued shares
- Details of the shareholders and directors
- Information about the corporate secretary
- Details of the registered address
2. Memorandum of Association
3. Articles of Association
4. Foreigners are required to produce copies of their passports and documentation of their residential addresses.
5. Completed KYC form (If you are engaging for nominee director service).
6. Bank statement / Bank reference letter
We will compile all necessary documentation and submit it to ACRA on behalf of your company.
Eligibility Criteria for Company Formation in Singapore
| Criteria | Requirements |
| Paid Up Capital | Minimum SGD 1 |
| Shareholder | Minimum 1 |
| Foreign Director | Minimum 1 |
| Local Director | Mandatory |
| Local Company Secretary | Mandatory |
| Local Registered Address | Mandatory (Virtual/Physical) |
| Preferable Type of Company | PTE Limited |
Minimum 1 shareholder
For Singapore company registration, you must have at least one shareholder. A stakeholder can be an individual or another business. A private limited corporation in Singapore can have up to fifty shareholders.
Note: Singapore allows 100% foreign ownership, as such, 100% of the corporation may be owned by a foreign national.
Minimum Paid-up Capital is SGD 1
Minimum paid-up capital of only 1 Singapore Dollar you can incorporate a company in Singapore.
Singapore has at least one director
At least one director who is a Singapore resident, to be entitled to the post of business director, a candidate should be at least 18 years old. A corporate director is in charge of overseeing the business affairs and determining the business’s strategic course.
In the case you do not have a Singaporean director, you can use our service for appointing a nominee director in Singapore.
Singaporean Company Secretary
A Singapore company must appoint a company secretary, who is a Singapore resident. The company secretary ensures compliance with company filings and regulatory obligations.
If you establish your business in Singapore with us, we’ll appoint an experienced company secretary for your company.
Singapore Registered Address
A registered address must be provided for the company in Singapore. It can’t be a PO Box.
When you incorporate your business with us, we’ll designate our address as the registered address for your business.
Auditor
You must choose an auditor within three months of your Singapore company formation, except if the pertinent parts of the Companies Act exclude your business from audit requirements.
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 a number of other things.
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 & 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.
Types of Business Entities for Company Registration Singapore
Here are the various kinds of business available for Singapore company incorporation:
1. Private Limited Company
ThePrivate Limited Company in Singapore is an option in which up to 50 investors can participate. 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 name.
- By selling shares, it is simple to change ownership of the business.
2. Limited Liability Company
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 Company
A subsidiary company is a parent corporation associate that has its own legal entity. The subsidiary is overseen by its board of directors. A subsidiary’s operations may be comparable or distinct from those of its parent firm. It must include at least one Singaporean 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. Sole Proprietorship
A sole proprietorship is a type of business that is managed by just one person. In this case, there is only one owner, and the business is not a distinct legal entity. All debts and obligations associated with the business are the responsibility of the proprietor alone.
Advantages of a Sole Proprietorship:
- Easy and quick to set up.
- The sole proprietor will receive all of the company’s profits.
Disadvantages of a Sole Proprietorship:
- A sole proprietor has unlimited liability.
- A sole proprietorship doesn’t have a perpetual existence
5. Branch Office
Foreign 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 Singaporean 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.
6. Representative Office
A 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 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 Representative Office:
- A representative office is not allowed to carry on operations, sign agreements, transport goods, provide services
- An RO is only intended to be used for promotional purposes or research on markets.
7. Variable Capital Company
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 fixed tax at a rate of 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.
Advantages For Company Formation in Singapore
There are numerous advantages for company registration Singapore are mentioned below:
| Aspects | Features |
| Tax Advantages | 0% Tax Captial Gain |
| Payment Options | Send and Receive Instant Payments |
| Internationally Recognized | International Reputation |
| Timeline | 3 – 5 Working days |
| Ease of incorporation | 100% Remote Process |
- Favorable Tax Regime: Singapore offers one of the lowest corporate tax rates in the world, making it attractive for businesses seeking to reduce their tax burden.
- Strategic Location: Singapore’s strategic location in Southeast Asia makes it an ideal gateway to the region’s vast and growing markets.
- Skilled Workforce: Singapore’s workforce is highly skilled and well-educated, with a strong emphasis on English proficiency.
- Business-Friendly Environment: The government has streamlined business processes and procedures, making it easy to set up and operate a company.
- Quality of Life: Singapore is known for its high standards of living, including safety, cleanliness, and infrastructure.
How much time 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: It hardly takes 1hour to 1 day (totally depends upon client)
- Company Name Reservation with ACRA: Fewer than 1 hour
- “Know Your Client” (KYC) checking by OnDemand International’s service provider of client as required by law: 1-2 days
- Client approval and signatures on the document set: It takes 1 hour to 1 day
- Preparation of a set of incorporation documents: 60 mins to 90 mins
- Affiliation with ACRA: 60mins to 90mins
How can OnDemand International Simplify Singapore Company Formation 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 then verify it with the appropriate government.
- 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
Incorporating your business in Singapore is a smart move for entrepreneurs seeking growth in Asia’s thriving market. Known for its strong economy, competitive tax rates, and seamless business registration, Singapore provides a supportive environment for businesses of all sizes. Its efficient infrastructure and pro-business policies make it an ideal destination to set up and scale your operations.
If you’re looking to set up your company without the hassle of being on-site, OnDemand International can simplify the process for you. Our experts specialize in helping businesses incorporate in Singapore remotely, ensuring a smooth and efficient experience. From handling paperwork to navigating local requirements, we’ve got you covered every step of the way. Get in touch with our expertstoday.
FAQ’s
A Singpass is a government sustained digital login and designation system that authorizes you to transact with numerous regional authorities.
The government does not see a reason to permit home-based food companies because of the tiny amounts of food they offer according to Singapore’s Singapore Food Agency (SFA).
Setting up a corporation in Singapore with ACRA takes one day.
Only when a Singaporean company’s yearly revenue surpasses S$1 million are they required to register for GST.
In Singapore, only specific business operations are restricted and need a company license. Examples include legal services, employment agency services, and financial services. If you’re unsure, check with us so we can direct you.
