Choosing the appropriate business structure for your company is just as important as any other decision you make. Your company will function more effectively and accomplish its goals if it has the right business structure.
Singapore is ranked second in the world for business ease. When it comes to running a business, Singapore never disappoints. Singapore is now the best place to start a business if you want to expand your global reach.
Table of Contents
- Why should you establish your business in Singapore?
- What are the advantages of Registering in Singapore?
- What does it require to establish a business in Singapore?
- Which business structures are available for you to register in Singapore?
- How to Register a Company in Singapore?
- Why Choose Us?
1. Why should you establish your business in Singapore?
Singapore is regarded as one of the greatest nations in the world to do business due to its robust yet welcoming investment and trade policies. The proprietors of a business must register their business. Forming a company in Singapore is straightforward and affordable.
The Ease of Doing Business Report 2020, which acts as a standard for foreigners and locals interested in starting a firm in Singapore, ranks Singapore second. Foreign corporate entities or foreign people are not authorised to register as businesses in Singapore under Singaporean law. They must hire a local professional business to register their corporation in Singapore.
2. What are the advantages of Registering in Singapore?
There are several benefits to starting a company in Singapore. Listed below are a couple of them:
Singapore, a dynamic metropolis with a population of roughly 5.64 million people and a GDP/capita of US$58,248 on a 722.5-square-kilometre island, is a vibrant city with a GDP/capita of US$58,248.
Despite being one of the world’s smallest countries, Singapore is known for its world-class Changi Airport and its strategic location near several of Asia’s major economic centres. Destinations such as China, Hong Kong, Indonesia, and India may be reached in only a few hours.
Vibrant Startup Ecosystem
Singapore, which was named the World’s Freest Economy in 2020, has continuously demonstrated its business destination for numerous startups and developing businesses.
Starting a business in Singapore offers an extra benefit in government support, making the early process less complicated.
Transportation, logistics, biotechnology, and finance are just a few of the expanding industries in Singapore, which has grown into one of Asia’s most prominent digital centres. Here are some figures with which you can identify.
Special Tax Benefits
While high corporation taxes in other areas of the globe may be a pain at times for many firms, Singapore has created an appealing tax structure with corporate tax rates ranging from 0% to 17 per cent.
There are other advantages in addition to the low corporation tax rates, such as:
- Tax-free dividends
- No tax on capital gains
- Tax credit pooling
- Unilateral tax credit
- Reduced withholding tax on foreign-sourced income
3. What does it require to establish a business in Singapore?
- Company Name
- Right Business Structure
- Registration of Company
Choosing the most appropriate company name is the first step in creating your firm. Clients will be more likely to stay engaged if you choose a company name that connects with your product or service.
Before creating your company, you must submit your preferred company name to ACRA for approval. This application takes less than an hour to complete, and your approved company name can be reserved for up to 60 days.
If you want the application process to go well, make sure your company name is:
- Does not infringe any trademark rights
- Is not obscene or vulgar
- Further, is not similar or identical to existing companies
- Is not reserved
Right Business Structure
Choosing an appropriate business structure is critical to your growth and the eventual success of your firm. One factor to consider when establishing a business form is the tax and liability structure.
Registration of Singapore Company
In Singapore, forming a business is a straightforward process. You may incorporate your business in less than 24 hours if you have all of the needed documentation.
Aside from the corporate service provider fees, you will be required to pay an extra $315 government charge to register your business.
4. Which business structures are available for you to register in Singapore?
Private Limited Company
A Private Limited Company (PLC) is a form that enables up to 50 shareholders and gives specific tax deductions and incentives, making it the most popular option.
Limited Liability Company
An LLP is a flexible option for business owners who wish to form a partnership yet keep their legal identities separate.
A subsidiary company is a private limited company that has its own legal identity and is independent of the parent company. The majority shareholder can be based overseas or locally.
In a sole proprietorship, just one owner is liable for the company’s assets and liabilities.
Foreign firms can register a branch office in Singapore and operate as non-residents. It is an extension of the parent firm and is a legal entity in its own right. Branch offices, on the other hand, are not eligible for any tax benefits or deductions.
A representative office can only be set up for a maximum of three years, making it a temporary structure. Foreign firms are only authorised to investigate the Singapore market under this setup, and they are not allowed to sell products or services to earn income.
Variable Capital Company
The VCC, which was launched in early 2020, is a game-changing investment vehicle for Singapore. The VCC is an upcoming popular vehicle to register because of its great versatility.
The following are the criteria for incorporating Singapore’s most popular business structure, a Private Limited Company:
- Min. 1 Shareholder
- Min. 1 Resident Director
- Min. 1 Local Company Secretary
- Min. S$1 Paid-up Capital
- Local Registered Address
It’s important to note that you can form a private limited business as a foreigner without relocating to Singapore. However, to form a Singapore business, you will need the help of a corporate service provider in any case.
5. How to Register a Company in Singapore?
Foreigners commonly form a Singapore business and begin operations in one of two methods. You have two options:
Relocate to Singapore with an Employment Pass (EP) or;
- Engage Nominee Service and run your business from anywhere in the world.
If you choose option 1, this is what you can do:
- Engage Resident Nominee Director (ND) > Incorporate Company > Apply for EP > Upon EP approval, take over current ND as Resident Director > Run your business.
If option 2 is preferred, you only need to:
- Engage Resident ND > Incorporate Company > Run your business from anywhere.
Choosing the proper business structure while forming a company in Singapore might prove to be a wise option. Like yours, thousands of Indian firms established a Singapore company and got started in the new market with unlimited opportunities to excel.
7. Why Choose Us?
We are delighted to assist you in navigating the complicated rules and regulations in incorporating your company in Singapore.
InCorp has a dedicated team of professionals in India and in Singapore. They have extensive expertise and understanding in a variety of fields, spanning from entity formation through dissolution.
We also offer post-incorporation services such as FEMA, transfer pricing, taxation, and other regulatory services.
Q1. Who can incorporate a company in Singapore?
A Singapore business entity can be registered by a Singaporean, a Singapore Permanent Resident, or a Singapore Employment Pass holder. If foreigners want to start a business in Singapore, they'll need a resident director with one of the aforementioned Singapore residency statuses.
Q2. In Singapore, how long does it take to form a business?
It takes one day to set up a company in Singapore with ACRA
Q3. Can a foreigner be a shareholder in a company?
Yes, a foreigner can own shares in a corporation. The firm must, however, have a Singapore Resident Director.
Q4. What documents are needed to form a business in Singapore?
The essential documents required to incorporate a company in Singapore are as follows: 1. Passport copies of shareholders 2. Resident Director’s address proof 3. If a subsidiary company is being created, or if a foreign corporate firm is a shareholder in another company, details of the parent company must be provided.
Q5. In Singapore, what are the different forms of business entities?
The types of business entities in Singapore are as follows: 1. Private Limited Company 2. Limited Liability Partnership 3. Subsidiary Company 4. Branch Office 5. Representative Office
About InCorp Advisory
InCorp India is the Indian arm of TA associates backed, Singapore headquartered InCorp Global. InCorp India is a leading integrated corporate solutions provider which has its presence across South-East Asia specialized in providing tech based incorporation, corporate secretarial & compliance, accounting, taxation, FEMA and investment banking services to its clients while partnering with them in their entire business lifecycle.