Singapore, a tiny island country, ascended to the top of the World Bank’s best places to do business survey six years ago and has remained there ever since. The process to incorporate company in Singapore is simple and free of red tape. Furthermore, the government provides tax breaks to a new company set up the entity and assists them with a variety of schemes during their early stages. Employing a licensed filing agent to set up a company in Singapore benefits both locals and foreign business owners. This is particularly true for foreigners looking for a new company set up an entity in Singapore.
Foreigners are not permitted to self-register and to incorporate company in Singapore they must instead employ a local business registration contractor. They must also obtain a Singapore work visa or pass. New company set up professionals will point you in the right direction for Singapore company registration, saving you time and money.
Aside from its business-friendly laws and flexible immigration policy, one major reason Singapore has dominated the list for so long is its straightforward tax filing system. In this article, we will be giving you the five considerations when you start a new business and incorporate company in Singapore.
#1 Singapore’s minimum requirements for starting a business
Singapore has the following conditions for new businesses:
There must be at least one and no more than fifty shareholders. In the case of private limited companies, 100 percent foreign shareholding is permissible.
The minimum paid-up capital to establish a business is one Singapore dollar. Companies are free to inject new capital at any time.
Although both Singaporeans and foreign residents may serve as directors of a Singaporean company, at least one must be a Singaporean. This may be a Singaporean citizen, a permanent resident, or a holder of an Entrepass.
If you incorporate company in Singapore, you are required to hire a trained company secretary within six months of incorporation. The secretary must be a Singapore citizen.
Any new Singaporean company must have a local address. This cannot be a post office box number.
#2 Determine the legal structure of your business
Even though other choices exist, many new businesses choose to register with the Accounting & Corporate Regulatory Authority (ACRA) as private limited companies due to their scalability. Furthermore, shareholders are not responsible for debts or losses over their share capital. Your new company set up entity is a taxable organization because it has been designated as such.
#3 Establish your company
The Singapore Companies Act governs the private limited company, and it must follow the laws of ACRA and the Inland Revenue Authority of Singapore (IRAS). Among the various designations are:
The ACRA must accept the company name.
A minimum of one shareholder is required.
Directors – At least one of the directors must be based in Singapore.
Company Secretary – Must be a Singapore citizen as well.
Paid-up capital – S$1 or more
A physical office address is provided for registration.
ACRA allows you to buy a business profile as a newly formed Singapore corporation. This electronic report contains information about your business, such as your registration number (UEN), registration date, shareholders, and so on. This profile would be needed in order to open a corporate bank account, apply for licenses and permits, and conduct due diligence on prospective business partners for your new company set up process.
#4 Factors that can influence your business structure selection
The total number of owners, members and partners will be an integral factor in your business structure. If you wish to be a single business owner, forming a sole proprietorship could be advantageous. You will have complete control over all company decisions. If you are two or more professionals/companies with complementary skills, forming an LLP could be advantageous. If you are a group of 1-50 people who want to own a portion of the company’s capital at low risk, forming a private limited company could be a good option for you.
#5 Post-registration activities
Permits and licenses – certain business practices necessitate permission or a license from government authorities. Private colleges, video firms, travel agencies, liquor dealers, money lenders, banks, financial advisors, childcare centers, and liquor importers, wholesalers, and retailers are a few examples.
Registered office hours – your office address and hours must be registered with a minimum of three hours per weekday.
Registration number – the ACRA company registration number must appear on all records used for official business communications.
Customs registration – if your company imports or exports goods, you must register with Singapore customs.
Registration for the Goods and Services Tax (GST) – the Goods and Services Tax (GST) is a tax on the supply of goods and services in Singapore as well as the import of goods into Singapore. If your annual taxable income exceeds S$1 million, you must apply for GST.
Registration with the Singapore Central Provident Fund (CPF) – the Central Provident Fund (CPF) is a mandatory pension fund scheme in which both the employer and the Singapore citizen/permanent resident employee contribute a portion of their monthly salary to the fund.
Incorporate your business today
Taxation is the primary reason why many business owners want to incorporate companies in Singapore. Singapore has business-friendly tax rates and a plethora of tax incentives to promote business development and entrepreneurship, which makes incorporating a company in Singapore a wise decision.
To incorporate company in Singapore is a good option when determining where to base yourself. Stable economies, stable labor markets, and business-friendly tax policies allow you to get up and running faster, allowing you to spend less time tangled in paperwork and more time growing your business.to WLP Group is the leading provider of business forming services in Singapore. We are well-positioned to assist the company with a variety of services such as work permits and relocation, accounting and taxes, business licenses, company clerk, and trademark registration. Contact us today and let us begin the process of incorporating your company.