Mention the name Singapore and entrepreneurs will tell you one thing: it is the ultimate place for doing business. Its strategic location in the heart of Asia means that in addition to the local market, you can also easily access additional markets. To enjoy all that Singapore has to offer, the first, and we must say, the most important step is company registration.
Although so much simplified, company setup in Singapore still remains a major obstacle for many foreigners. For those thinking of coming to Singapore for the first time, so many questions linger in their minds, but this post was crafted to help answer them. Keep reading for answers to common questions about company incorporation in Singapore.
What are the Main Types of Businesses You can Open in Singapore?
There are many types of businesses that you can set up in Singapore, but the following three are the most common:
Subsidiary Company: This is the most preferred type of company in Singapore. It is considered a resident company, and it allows 100% foreign shareholding.
Branch Office (BO): A branch office in Singapore is a registered legal entity but not independent from the parent company back home. Therefore, it can repatriate earnings to the parent company, but profits generated from operations in Singapore have to be taxed.
Representative Office (RO): This type of company is considered a temporary setup for firms that are exploring the local market. The main challenge of a representative office (RO) is that it comes with so many limitations, such as lack of legal persona. This implies that it cannot trade, sign lease agreements or open letters of credit.
What Do You Need to Register a Company in Singapore?
Here is a full list of all that you require to register your company in Singapore:
Pre-approved and reserved company name.
List of companies and directors.
Directors of the company need not be directors. One of the directors must be a resident in Singapore)
Resident company secretary.
Paid up capital, which can be the preference, ordinary, or another share category.
Registered address of the company.
Memorandum of understanding.
Articles of association.
Before you can get started, you will also need to open a corporate bank account and get special permits. For example, companies operating restaurants, travel agencies, financial services, and educational institutes have to get additional licenses for their products or services.
What Tax Incentives Does Singapore Offer Foreign Investors?
Singapore is preferred by investors because it offers a long list of benefits, from government support to socio-economic stability. However, it is the tax incentive that is most notable. Singapore has a low and straightforward tax system that helps to ensure entrepreneurs retain the bulk of their profits for business growth.
Both corporate and personal taxes start at 0%. For example, new companies are charged 0% for the first S$100,000 of taxable revenue.
Anything above S$100,000 is charged the normal rate of 17%, which is still way less compared to other jurisdictions with up to 35%.
When it comes to personal taxes, it starts at 0% and rises to 20% for income surpassing S$320,000. Singapore also charges very low value-added tax and has signed many bilateral trade arrangements for double tax avoidance.
What is the Best Way to Register a Company in Singapore?
The best way to register a company in Singapore is working with an agency of experts. These are professionals with excellent qualifications and experience to help complete the process fast. They prepare your documents professionally and hold your hand to keep the process cheap.
Another awesome thing is that the agency you select does not stop there. In addition, you will be assisted to get all the required permits, craft a good strategy for market entry, and carry out due diligence.
Even after commencing operations, the agency will be there to help with accounting, payroll management, and filing tax returns.
No matter what type of company that you want to form in Singapore, know that an agency of experts is waiting to help. Why try to register a company in Singapore alone and risk getting it wrong when an expert is waiting to assist you? You can never go wrong with experts on your side!