Incorporation in Singapore is a brief system of business registration with the ACRA following a sufficient strategizing of staff relocation, tax planning and paperwork within one of the available business entities. With only 1 SGD in the pocket, you can incorporate a company online! Thanks to the efforts of Singapore government and its pro-business model, the system of setting up a Singapore company was streamlined and improved to stamp out any fraud and red tape. Yet despite the ease of the system, it shouldn’t be done carelessly as there are many factors that should be taken into the statement. That’s the reason it’s crucial that you get a piece of pro advice for your choice and a competent assistance on the go.
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Due to its brutally low taxes, efficient business laws, a variety of business entities, governmental assistance, and smooth company incorporation, Singapore is praised as the planet’s comfortable place to run a business by the World Bank’s studies for several continuous years. Country’s innovativeness, advantageous location in the very center of Asia-Pacific, talented manpower, and cross-cultural mind are other few benefits of setting up a company in Singapore. If you are looking for an excellent launching pad for your new company, Singapore is the place to start up!
Benefits and Features
Tax benefits: Singapore is often called as the Delaware of Asia because of its business-friendly taxation systems. For various business owners, the tax is the main reason to set up a business in Singapore. The Republic of Singapore has pro-business taxation rates and provides many tax-related incentives to promote entrepreneurship. Singapore has one of the world’s easiest and most reasonable taxation policies in place. It levies no tax on capital gains or on profits. The rates of GST in Singapore is apparently the lowest.
Double Taxation Avoidance Agreements (DTA) and Unilateral Tax Credits: The Government of Singapore has joined into Double Taxation Avoidance Agreement with over 50 nations including some of the most powerful economic countries in the world such as the United States, People’s Republic of China, United Kingdom, Canada, France, Germany, and India. These Double Taxation Avoidance Agreements guarantees that National and Multi-Nationals Companies gets profited and do not undergo from double taxation. Furthermore, Singapore also provides Unilateral Tax Credits, which becomes applicable onto countries, which has not signed a Double Taxation Avoidance Agreement with Singapore.
100% Foreign Ownership: Singapore Companies Act provides a foreign national individual or company to own 100% shares of a business established in Singapore. Therefore, there is no need to have a local partner or shareholder.
No Currency Controls
Easy Incorporation Process and Operations
Easy Access to Capital
Business-friendly government policies
The gateway to Asia & the Geographical Location
Motivated, skilled, productive and English-speaking workforce
Corruption free Regulatory framework and environment
Government Policies supporting to Start-ups
And many more
Sole proprietors and partnerships (so-called “self-employed”) who derived business income would require to report in his/her individual tax return. Whereas, local businesses are taxed on profits that derived in Singapore with a lower corporate tax rate compared to the highest progressive personal tax rate.
Singapore government is providing a full corporate tax immunity for up to SGD$100,000/- profit on the first three-year profit for newly enrolled and qualified companies.
Under the plan, qualifying new companies are given:-
- complete corporate tax immunity on the first $100,000 of normal chargeable income and
- an additional 50% immunity on the next $200,000 of normal chargeable income for the first three consecutive Years.
To qualify for the tax immunity for new start-up businesses, your company must:
- Be incorporated in Singapore (other than a business limited by guarantee);
- Be a tax resident in Singapore for that Year Assessment. A business is a resident in Singapore if the command and management of its company are exercised in Singapore.
- Have no more than 20 shareholders during the basis period for that year where:
- 1)all of the shareholders are individuals beneficially and directly holding the shares in their own names, OR
- 2)at least one stockholder is an individual beneficially and directly holding at least 10% of the allotted ordinary shares of the company.
Accounting requirements: For companies with yearly turnover over S$5m, yearly audited statements are needed to be registered with the Singapore Registrar; the statements must be reviewed by a professional Singapore auditor. However, Outside organizations are not required to have their records audited and annual accounts can be filed without examination. To be designated as Exempt Company, the latter requirements must be met: members of the organization must not exceed 20, members of the organization should be individuals and not a corporation, and annual turnover should not exceed S $5m.
Registered Agent: Needed
Registered office: Needed
- Language: Any
- Letters: From the Roman alphabet.
- The company name need end with such words: Private Limited, Limited or such suffixes Pte. Ltd or Ltd.
- Names Requiring Approval or a Licence: Bank, Commercial institution, insurance, capital management, college, Chamber of Commerce and other similar names.