Register company in Singapore
What is firm incorporation in Singapore?
- A stable state economy, attractive investment policy and no restrictions on foreign property ownership;
- Good reputation of the country in the international arena;
- Favorable geographic location and access to the Southeast Asian market;
- Opportunity to carry out tax planning on favorable terms – the first 3 years the company is subject to income tax in the amount of up to 100,000 SGD with a 75% discount;
- If the profit is up to 200,000 SGD, the tax is 8.5% and 17% if the threshold is exceeded;
- Application of international double taxation treaties;
- No capital gains tax;
- Income received from foreign sources is not taxed
Our advantages in company formation in Singapore
Steps to set up a firm in Singapore
- There is no personal liability of the participants for the debts, obligations and losses of the company.
- The standard corporate rate is used for tax purposes.
- Dividends are not subject to taxation.
You can take advantage of tax incentives for newly established companies.
- High reputation component (Pte Ltd is a full-fledged business unit without significant restrictions).
- Legal advice and strategy development;
- Choosing a name, creating a structure, forming a charter, appointing a director;
- Submission of documents to the registration authorities and registration of a legal address;
- Incorporation of a legal entity and opening a bank account locally or in any other state;
- Business start-up and supervision (accountant and tax expert assistance, annual reporting);
- The directors of the company are required to inform the hiring entity of all available shares, contracts and interests.
- Restrictions on the transfer of shares, fixed in the constitution of the company.
- Restrictions on doing real business in Singapore, prescribed in the company law. How critical and significant they will be in your case, we do not know. But even involuntary violations threaten you with serious sanctions and loss of reputation.
- Annual mandatory reports.
- High administration requirements.
- Insufficient level of privacy.
- Compliance with ACRA / IEAS requirements is strictly mandatory.
The fair cost of company is formed from many details. Doing business here is no cheap considering
huge demand for local offices, high-quality professionals, elevated salaries and simply a standard of living.
Singapore company registration cost comprises the following expenses:
- Services of the incorporation agent and state fees;
- The legal address of the business, which must be renewed annually;
- Salary of a corporate secretary;
Nominee resident director services (or obtaining resident status for owner/director or their representative);
- DHL delivery of papers to and from Singapore;
- Maintaining and filing financial statements;
- Annual audit (if necessary for some sort of economic activities).
Not to mention that the business itself also requires particular expenses. If you buy services and goods inside the country, the price can also be extremely high. Registering a legal entity in Singapore takes up to 2 weeks. Setting up an account may take a little more time. In any case, you will need to provide a set of documents, translate it into English, and check it with us. In some cases, a personal visit may be required.
Yes, local law allows citizens of any country to open an office or representative office of their foreign establishment here. There are several types of organizations in Singapore, but the most popular among non-residents are limited liability companies – PTE Ltd. In these corporations only individuals can be shareholders and there should not be more than twenty.
The bonus is that PTE Ltd is automatically exempt from mandatory audit if the annual turnover does not exceed SGD 5 million. Those who could not or did not want to exceed the yearly volume of SGD 5 million simply submit declarations of solvency signed by the director and secretary of the organization. As long as the is limited liability company is solvent, there is not even a requirement to file financial declarations, which increases the confidentiality of managers and stockholders. The obligation to maintain accounting records and prepare reports remains, which makes such companies attractive to serious and large banks.
As in most countries, the list of requirements is different depending on who is the founder – an individual or a legal entity.
Private persons must submit a scanned copy of the internal ID, and papers to confirm the registration address (usually a certificate of residence, or utility bills). Legal entities present copies of the passports of all founders and beneficiaries, as well as other persons who have the right of significant control. Along with this, it is essential to show the constituent documents, namely the certificate of incorporation, the charter and protocols of the meeting of the board of directors.
If you plan to operate in regulated sectors of the economy, such as trading in financial markets, providing banking or other money related functions, the list will include proof on the relevant education and experience of key people in the firm and official confirmation of the absence of criminal records.
Private individuals do not need such services. But under the national corporate law, a secretarial assistant is a mandatory position, not an optional one. The main tasks that he will solve are the following:
- Maintaining all mandatory registers, as well as the Book of Records;
- Storage of all statutory documents of the company with legal responsibility for safety;
- Preparation of the necessary data for holding a general meeting of shareholders, protocols and reports;
- Drafting and submission of annual reports to state and regulatory authorities;
- Storage of the company’s stamp and seal.
It is easy to see that the functions of the secretary are mostly nominal, but we all have to come to terms with this requirement of corporate law.
How long does it take to set up a firm in Singapore?
There are two options. You can buy a ready-made company that has already been enlisted in the commercial register earlier. This legal entity already has a title, an identification number, nominee director and corporate secretary, and a legal address. This is a quick solution for those who need to urgently figure out their business issues. You will receive a package of documents literally in one working day.
Or you can register a new company with your own title and details. It will take about 2 weeks, not counting the period for collecting and preparing documents. Also, opening a bank account takes more time, as many banks are reluctant to open accounts for newly incorporated organizations. But don’t worry. We will help you choose the right reliable bank with the most comfortable conditions for your business.
All formalities for registering a firm can be settled without the obligatory presence of the owner. The only exception is opening a bank account in a Singaporean bank.
The legislation does not allow foreign individuals or legal entities to register companies independently. This can only be done through a local agent (a specialized firm that will represent your interests in government agencies).
If you do not plan to move to the state for living, you can freely manage your business from abroad. In this case, you need to hire a local managing director and corporate secretary. It is usually possible to employ a nominal director. Whenever there is a need to visit Singapore, a foreigner can come on a regular tourist visa. If you plan to be fully engaged in the management process, you must be present in the country. An employment pass or an entrepreneur visa is mandatory in this case.