Singapore is an excellent location for establishing a new business. It permits foreign and domestic residents older than 18 to operate a commercial enterprise. Existing domestic and foreign corporations may also own stock in the new ventures.
If you are a Malaysian and want to incorporate a company in Singapore, don’t wait. You will avoid arriving in a remote location in this manner. Because Singapore is home to up to 600,000 Malaysians. Malay is Singapore’s official language. It is a multilingual community that relies on English to connect people of many ethnicities who live on this island.
Foreigners select Singapore to establish a company because the country provides open regulatory processes, the necessary infrastructure to support enterprises, and a fantastic startup ecosystem.
Benefits of Setting up a company in Singapore from Malaysia
The list of benefits of setting up a business in Singapore from Malaysia are as follows:
- Singapore has a 17% corporate tax rate which is less than Malaysia. Malaysia has a 25% corporate tax rate.
- Foreigners are permitted to own 100% of the shares in a Singapore firm. They do not require any formal authorization to do so.
- Singapore has extremely minimized corruption and increased transparency.
- The company formation process in Singapore is much more straightforward.
- You don’t have to provide any tax on capital gains.
- Malaysia and Singapore have signed a double taxation avoidance agreement.
Requirement to set up a company in Singapore from Malaysia
- A minimum of one stakeholder
- A minimum initial paid-up capital of S$1 is required.
- At least one local/resident director
- At Least one Company Secretary is required.
- The company required a registered local address for an office
Documents Required to setup a company in Singapore From Malaysia
Documents required to start a company in Singapore from Malaysia are as follows:
- Name of the company that should cleared by ACRA
- A summary of the company’s operations.
- Information about shareholders.
- Particulars about the directors.
- Registered address.
- Information of the company secretary.
- Constitution of a company (MOA and AOA)
How much does it cost to set up and maintain a business in Singapore from Malaysia?
S$1 may serve as the minimal paid-up capital. It can be increased at a later time if required. However, starting and sustaining a business is not free. You must consider the following costs while establishing and operating your business in Singapore from Malaysia.
The typical cost of starting up a business in Singapore is S$3000-S$5000, according to local incorporation firms. A nominee director, a company secretary, government fees, local location, and company registration are all included in this price. The most expensive service would be the nominee director service. It might set you back roughly S$2000.Some organizations would additionally require a S$2000 security deposit to provide this service. This deposit is held as protection for the nominee director.
In Singapore, the monthly rent for an office is S$800. You may go for a co-working facility, which would cost roughly S$550.
The management of your business activities, which includes a nominee director, corporate secretary, local address, and the submission of annual forms, incurs an annual retaining charge of S$2,500 to S $5,000.
Prior to relocating to Singapore for commercial purposes, you are required to obtain an Employment Pass.
An EP will cost you between S$1000 and S$1500, but it will save you the cost of employing a nominee director.
In order to accompany family members, an additional charge of S$500-S$600 is required for dependent passes.
Licenses/permits for business activities such as import-export and tourism must be purchased for S$50-S$500. The cost of licenses/permits varies according to the industry. This does not include the cost of the local incorporation agent’s services.
Company registration in Singapore from Malaysia is a simple procedure that can be completed in a matter of days. Malaysian entrepreneurs must meet a few important conditions, such as having a local director and a registered office in Singapore. However, with the help of a local business services company, the procedure can be streamlined.
For More Details, you can consult with an expert team of OnDemand International.
The most common types of business structures in Singapore are:
- Sole proprietorship
- Private limited company
- Public limited company
The GST rate in Singapore is 7%.
No, dividends distributed to shareholders in Singapore are not taxed.
It is not necessary to be a Singaporean resident or citizen in order to establish a corporation in Singapore. However, one local director must be a citizen, permanent resident, or EntrePass holder of Singapore.