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
Steps to Register A Company In Singapore
Step 1: ACRA Approves the Company Name
Step 2: Acquire all the papers you will be required to register your company in Singapore.
Step 3: Company Constitution
Step 4: File your application on the BizFile+ Portal
Step 5: Confirmation Of Incorporation
Step 6: Acquire company licenses & permissions
Step 7: Get Share Certificates
Step 8: Open company bank account in Singapore
Step 9: First Board Resolution
Step 10: Annual Filings and Returns
Step 11: Appoint a Corporate Secretary
Step 12: Paid up Capital
Documents Requirements to register company in Singapore
- Completed KYC form (If you are engaging nominee director service).
- Memorandum of Association and Articles of Association
- Copies of passports for all directors/shareholders of the proposed new company
- All directors and shareholders must have proof of their residential address
- Bank statement / Bank reference letter
- Certificate of incumbency from parent company
- Profile of the client’s business in his country
Types of companies 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.
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. You can have multiple stakeholders.
Capital at least SGD 1
With a capital of only 1 Singapore Dollar, you can begin your Singapore company.
Singapore has at least one director
Directors of a Singapore firm can be both Singapore citizens and foreign citizens. However, there should be 1 Singapore citizen to be added as a Singapore Director to the Board of Director list.
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.
Why 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 have to register their company. The process of forming a company in Singapore is easy and cost-effective. Your Singapore business 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 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.
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.
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 of exporters. A manpower intensive state helps you to build a manufacturing unit with 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.
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.
