Singapore is considered the ideal country to start a new business and its further development, as the government maximizes the development of entrepreneurship, also supporting the free market. If you decide to start electronic commerce or IT business, then set up a company in Singapore is the best solution. This is due to the well-developed infrastructure, leading positions in the ranking of population coverage and Internet speed plus numerous benefits. One of the advantages is getting a concession tax rate of 10 percent for 5 years, covering income received from transactions made by payers from other countries and related to electronic commerce.
Set up company
A transparent regulatory framework, a stable political and economic system, a high level of protection of intellectual property and the rule of law, the shortest time for consideration of a lawsuit and the absence of bureaucracy, one of the low levels of corruption and crime and a high standard of living are also worth noting. Any company cannot exist without experienced specialists. Registering a company Singapore you will have no problem with it. Thanks to the program developed by the government of this country, finding an experienced and qualified employee is not difficult.
Singapore is widely regarded to have an incorrupt and meritocratic government, with a fair judiciary and strong rule of law.Atrium Business Solutions
Why set up offshore company in Singapore
In addition to the high prestige of the jurisdiction, one of the main advantages of Singapore is a clear and flexible tax system that allows reducing the tax burden to zero. What is the peculiarity of the country’s tax system?
- Taxes are only levied on profits made from Singapore sources or transferred to a Singapore account. Therefore, increasingly, businessmen prefer setting up a company in Singapore having a bank account in another country.
- One-level taxation system. Dividends received from a Singapore company are not taxable.
- Benefits for startups. The first 100 thousand SGDs are not taxed. Subsequent 200 thousand SGDs are taxed at 8.5%, and all that over 300 thousand SGD of income per year is taxed at the full 17% rate.
- Capital gains are not taxable.
Moreover, the government has developed a large number of tax relief and incentives for various sectors of the economy. In addition, there is a large number of bilateral Double Taxation Treaties.
Ways to register company in Singapore
Private individuals from abroad and firms have the opportunity to register company in Singapore for foreigner with 100% participation. A foreign entrepreneur who wants to establish a company and move to Singapore to manage his business locally can apply for a visa of two types: a business permit (EntrePass, a business owner’s visa) or a work permit (Employment Pass, visa of an employee, specialist or director of the company). Of these two options, work permits have a wider range of applications and are easier to renew.
However, the choice of permission will depend on your education and qualifications. If you have a higher education received at a well-known university, in addition, you have experience working in the specialty acquired for five years or more, then you have good chances that your work permit (Employment Pass) will be approved. As an alternative, you can send a request for a business permit.
There is no quota system for issuing work permits or business permits in Singapore. However, each application for permission is considered individually and approved by the Singapore government and this procedure is carried out with great care.
Company types you can register
For any serious entrepreneur, private limited company registration in Singapore is the first choice. This company type is also referred to as Pte. Ltd or Singapore Pte. Ltd. This is a legal entity, independent and separate from its owner. Accordingly, being an independent legal entity, substantive obligations of Pte. Ltd. are not associated with its owner.
The two other types of enterprises available for registration are Individual Enterprise and Limited Partnership. Although they are simpler in their business structure than Pte. Ltd., they have some disadvantages that make them less attractive for doing business. For example, in an individual enterprise, the legal entity and individual are not separated, so the owner is fully and personally responsible for all the obligations of the enterprise.
Private limited company
The essential facts about starting up a business in Singapore and Private Limited Company:
- Any local or foreign person is free to open a company in Singapore.
- An alien may own 100% of the company in Singapore.
- To create a company requires at least 1 director and 1 shareholder, in turn, it can be the same person.
- The director of the company must be at least one resident, local. Foreigners moving to Singapore to manage their company can be considered residents only after a work visa has been approved. You can hire a local nominee director to manage your company from abroad. Such a director can appear in the documents of the company, but in fact, other people will manage the company and finances.
- Every company in Singapore needs a registered address.
- It is very easy to open a corporate bank account for a company in Singapore. Singapore is one of the best financial centers in the world, and most major banks operate here.
- Registration of company in Singapore will take less than 1 day. The whole procedure for opening a company is fully computerized.
- To register a company, foreigners do not have to visit Singapore.
Requirements for companies
Each company in Singapore should:
- Submit an annual tax return to IRAS (Singapore Tax Administration).
- Submit an annual report to ACRA (Singapore companies registry).
- Register to pay GST (Goods and Services Tax) if the company’s annual income exceeds 1 million Singapore dollars.
- Notify ACRA of any changes in the structure of the company: any change in the shareholders or officers (director, secretary), a change in the registered address, a change in the share capital, etc.
- Conduct a mandatory annual audit if the annual income exceeds 5 million Singapore dollars or the number of shareholders exceeds 20 people, as well as in the case when the shareholders include legal entities.
The corporate tax payment date is November 30th. Tax returns are filed based on the results of the previous year. However, businessmen decided to set up a company in Singapore should pay attention that a taxable income statement must be filed and registered within 3 months after the end of the financial year.
The approval of the company name is a mandatory step in the registration process and takes 2-3 hours if it is adequate and unique. Naturally, when choosing a name you need to be guided by general rules and common sense.
Other required documents and information for foreign company registration in Singapore:
- Memorandum of incorporation – contains the name of the company, confirmation of the legal form of business (the most popular is a private limited company), information about the signatories of the Memorandum of Association: full address, name, and place of work, number of shares issued by the company, indicating the charter currency capital and Articles of Association of the company.
- Singapore Declaration of Compliance (Statutory Declaration of Compliance).
- Information about shareholders, directors, secretaries, etc. (Particulars of Shareholders, Directors, Secretaries, etc.).
- Copies of identity documents (passports) of directors and shareholders for individuals of a Singapore company; legal entities are required to provide copies of the Company Registration Certificate and documents confirming the legal address of the company.
- Registered office address for new company registration in Singapore with opening hours.
- Consent to act as Director and the Statement of Non-disqualification to Act as Director.
- Consent of an individual to act as Secretary of the Singapore Company (Consent to Act as Secretary).
Benefits to open company in Singapore
The number of foreign investors interested in offshore company registration in Singapore is increasing from year to year. This is facilitated by major driving factors, such as:
- Low tax rates. Singapore has some of the lowest tax rates in the world.
- An excellent base for further expansion into Asian markets. The choice of foreign investors in favor of Singapore is determined by a number of advantages. It is a leading metropolis with an excellent climate for business cooperation and meetings, an effective legal system and an almost complete absence of corruption. These circumstances make Singapore a choice for regional headquarters for further expansion into Asian markets when the process of company registration in Singapore is over.
- High-quality accommodation. The quality of life in Singapore is comparable to the quality of life in Western countries, in some ways even surpassing it. The country is safe, the environment is friendly and cosmopolitan. Health, education, and housing are excellent. English is spoken everywhere, and most people find moving to Singapore as an easy and comfortable process.
Quick and easy offshore company formation in Singapore
The process of company registration in Singapore by foreigner is fast and uncomplicated. Singapore has the essential elements to serve as the runway for business in the whole Asia-Pacific region. Asia with its hot investment opportunities, growing consumer markets, conditions for efficient and cheap production and low-cost resources is becoming more and more attractive for foreign companies, investors and start-ups with far-reaching plans that have become stronger on the market.