Singapore Company Registration
Are you looking to register your new company in Singapore or run an existing company?
We will discuss the steps for Singapore company registration and will help you to get every detail on how to incorporate, manage and run a company in Singapore.
How to Register your Company in Singapore?
- Learn and understand requirements for company registration in Singapore.
- Collect supporting papers and determine the corporate system.
- Confirm the availability of the company name you are interested in.
- Sign incorporation documents.
- Create an new a bank account for the firm you have just created.
Table of Contents
Why to register your company in Singapore?
Singapore is considered to be one of the top nations to conduct business because of its strong but welcoming investment and trade policies. Business owners tend to register their company, as the process of registering a company in Singapore is easy and cost-effective. Your business in Singapore should be registered for a variety of reasons.
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 registered 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.
Register A Company In Singapore in 8 Steps
Decide on a business name and reserve it
The first step for company registration in Singapore is to choose a name for the business.
The chosen name must be original, significant, simple to read, and free of rude or offensive words.
To verify with 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 a period of 60 days from the date of application.
Decide the corporate structure
The next step for company incorporation in Singapore involves deciding the form of business you wish to incorporate. In Singapore, you the option of setting up a Private Limited Company, a Sole proprietorship, or any other form of business.
Prepare the necessary paperwork
The entrepreneur must prepare the necessary paperwork to register a company in Singapore such as the articles and memorandum of association, information about the business address, information about the stockholders, etc.
Proceed with business registration
An application and the required paperwork for incorporating a business must be uploaded to the BizFile+ platform by the entrepreneur.
Acquire a Certificate of Incorporation
An email from ACRA verifying the business’s successful incorporation will be given. Following this, you will receive the Certificate of Incorporation and the company’s profile.
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.
Obtain licenses and permits
Depending on the type of activity the company will be engaging post incorporation, you will need to obtain different business licenses and certificates.
Register 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.
Open a business bank account
After the firm has been established, the entrepreneur can establish a business bank account in Singapore.
Business Structures in Singapore
Private Limited Company
The Private Limited Corporation (PLC) is an option that allows the participation of up to 50 investors. It provides tax deductions as well as incentives which makes it the most sought-after option.
Limited Liability Company
The LLP is a flexible choice for business owners who want to create a partnership but retain their legal identities distinctly.
Subsidiary Company
The subsidiary is an individual limited corporation with its own legal entity and is not affiliated with its parent corporation.
Sole Proprietorship
If you are a sole proprietor, only one person is accountable on behalf of the firm’s capital as well as obligations.
Branch Office
Foreign companies can open an office branch in Singapore and be non-residents. The branch office is an extension of the parent company and is an entity legally a separate entity.
Representative Office
A representative office is able to be established for a maximum period of three years, so it is an indefinite structure. Foreign firms are only allowed to study the Singapore market in this manner and are not permitted to offer products or services in order to earn money.
Variable Capital Company
The VCC which was introduced in the early months of 2020, 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.
Documents Required to register company in Singapore
1. Company Constitution- In Singapore, a firm’s constitution lays forth the fundamental principles by which the corporation will be governed. It defines the corporation’s objectives and specifies the rights, responsibilities, authority, and tasks entrusted to the business, its board of directors, and its stockholders.
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 nominee director service).
6. Bank statement / Bank reference letter
Eligibility criteria for Singapore company formation
Minimum 1 shareholder
You need to have at least one shareholder in order to register your business in Singapore. A stakeholder can be a person or another business. A private limited company in Singapore may have up to 50 stockholders.
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
Directors of a Singapore firm can be both Singapore citizens and foreign citizens.
Singaporean Company Secretary
A Singapore company must appoint a company secretary, who is based in Singapore. The company secretary ensures compliance with company filings and regulatory obligations.
Singapore Registered Address
A registered address must be provided for the company in Singapore. It can’t be a PO Box.
Tax Structure 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 7%.
- Property tax: Depending on the anticipated rental prices of the buildings, property tax is levied on the proprietors of the assets.
- 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 in Singapore, 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.
Advantages of Singapore company registration
As there are numerous advantages of Singapore company registration, however, we’ve listed down some of the key advantages of it.
The owners of the company
Shareholders own a company. 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 is a city that was called as the World’s Freest Economy in 2020 and has been a consistent as a business hub for a variety of companies and startups.
Beginning an enterprise in Singapore provides an additional benefit from government assistance, making the process easier.
Special Tax Benefits
While the high rates of corporation tax in other parts of the world may be an issue for some companies, Singapore has created an attractive tax structure for corporations with tax rates that range between 0% and 17 percent.
There are many other benefits aside from the tax rate for corporations that is low like:
- Tax-free dividends
- Capital gains are not tax-free.
- Tax credit pooling
- Tax credit for Unilateral
- Tax withholding reductions on income from foreign sources
Company Setup
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Conclusion
With a good working class mass of its population and cheap rate of corporate taxes the country of Singapore is one of the most favorable areas for people of the subcontinent to set up their businesses both remotely and physically.
With its largest port facility, the country is considered as a cheap gold mine for exporters. A manpower-intensive state helps you to build a manufacturing unit with a labor operating cost of 4307$ as per Q3 2022.
This is where the experts of ODINT Consulting come along and help you not just with a blueprint but also with incorporation laws and ideas for setting up your business in that particular geography.
FAQ’s
In Singapore, establishing a business is simple as a Singapore corporation can be established with just S$1 as the required share capital and a minimum of 1 director and 1 shareholder.
Singapore is not a country with no taxes. It imposes taxes gradually, ranging from 0% to 22% (for earnings over S$320,000). Additionally, a fixed rate of 17% of tax is applied to company income. However, neither capital gains nor inheritance is taxed.
Yes, foreigners can establish a company in Singapore. Foreign nationals can establish a company in Singapore in one of three ways:
- You can register for an EntrePass from the MOM.
- You can register for an Employment Pass.
- You can designate a resident local as the firm’s director to oversee the organization.
As per the Singapore Companies Act, anyone over 18 years may incorporate a company in Singapore.
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. Depending Upon the complexity of your business it might take a few weeks. Get in touch with our experts for free consultation.
In Singapore, the usual GST rate is 7%.
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.
