Why Should You Incorporate a Company in Singapore?
Singapore is world-renowned as a leading hub for economic activities. It is often regarded as a gateway for businesses that want to prime themselves for further expansion into other ASEAN cities. Its politically stable environment, flexible immigration policies and advanced technological landscape make up some of the advantages of setting up a business in Singapore.
According to the World Bank’s Ease of Doing Business Index 2020, Singapore is the second easiest country to start a business in, which comes after New Zealand. Singapore has one of the most efficient and bureaucracy-free regulatory frameworks in the world. The requirements for incorporating a company are straightforward and the procedure for doing so is relatively simple. In most cases, it takes less than a day to incorporate a new company.
The resources provided in Singapore makes it easier for any investors or entrepreneurs to start a business. Any person across the globe can incorporate and start a business in Singapore.
Benefits of Incorporation in Singapore
The following are the benefits of company incorporation in Singapore:
Straightforward Incorporation Procedure
When compared to other countries, the Company Registration process is quite straightforward. Apart from this, incorporating a company in Singapore is completely an online process. This makes it simple for an entrepreneur to incorporate a company in Singapore. The annual compliance requirements are also simple and devoid of unnecessary or complicated paperwork.
Cost of Incorporation is Low
The cost of Company Registration in Singapore is quite low when compared to other jurisdictions such as the USA, Australia and the UK. Even the annual compliance cost for running the company is quite low.
Most first-time visitors to Singapore are astonished by the world-class infrastructure of the country. This includes the country’s airport, highway system, subways, internet infrastructure, commercial buildings, museums, hotels and public parks. Much of the infrastructure has been developed in the last decade so it is very modern and new. Aside from creating a pleasing work environment, this infrastructure also improves the productivity of its businesses.
There are different industries that flourish in Singapore. This would include the financial services sector, insurance business, legal sector as well as tech sectors. All these sectors provide different opportunities for businesses to grow. There is continuous government support also offered to these industries.
Singapore has one of the world’s simplest and most rational tax systems. Individuals and companies only are taxed on income generated within the country as Singapore follows territory-based taxation, with no tax imposed on any foreign-sourced income. This makes the country particularly attractive to entrepreneurs who want to incorporate and build a new business.
Support for Startup
Singapore provides attractive grants and schemes to local start-ups as a source of motivation. Certain criteria are set by the government and the businesses can avail themselves of the grants based upon the category they fall into. The Singapore government has introduced various initiatives and programmes to create a vibrant startup ecosystem for both local and foreign entrepreneurs.
Strategic Geographic Location
Due to its close proximity to the emerging markets of India and China, Singapore is the hub for many top industries in the world. Situated in the heart of South-East Asia, it is easier for all the businesses here to have access to a market of 3 billion people. The port of Singapore is said to be the busiest in the world, making the country a premier International Maritime Centre (IMC). Additionally, its Changi International Airport links 300 cities in 70 different countries and caters to nearly 20 million passengers every year providing benefits to leading logistics companies along with passengers.
There is a multitude of talent available in Singapore. Immigration policies and sponsorships are attracting different individuals to apply to Singapore. Singapore’s liberal immigration policy brings global talent to the country. Singapore makes it easy for a foreign professional to obtain and maintain work visas or permanent residence (PR) status. Nearly a third of the country’s workforce is from abroad. Through this, a diverse talent pool is offered in Singapore.
Nearly every young or middle-aged Singaporean also speaks English. Singaporeans are some of the most productive and well-trained workers in the world. The country’s excellent education system produces a talent that is good at what it does, yet on wages, it is extremely competitive with other countries.
All investments carried out by investors would have some form of protection, as law and legislation would support foreign investment and investors. The country has virtually no corruption because most government officials are very well paid, very harsh punishments are imposed for corruption, the country’s founder Lee Kuan Yew set a very high bar for moral rectitude and led the country by example. So, if you incorporate a company in Singapore, you can be assured that you are not going to be at the mercy of corrupt officials; your business will succeed or fail on its own merits.
Primary requirements for incorporating a company in Singapore
1. Choosing company name
The proposed name of your company will be submitted and approved by Accounting and Corporate Regulatory Authority (ACRA), the submission is made through ACRA’s portal called BizFile+.
2. Registering office address
You would need to provide a local address in Singapore. PO Boxes are not Permitted.
3. Appointing Director(s)
The person(s) appointed can be a Singaporean, a permanent resident, or a person holding an employment pass. After deciding on a resident director, foreign directors may also be appointed.
Private limited companies need to have at least one shareholder and not more than 50 shareholders).
5. Appointing Corporate Secretary
Based on the Companies’ Act, companies are required to appoint a resident company secretary who will keep the relevant parties informed of statutory Obligations.
6. Share capital
The minimum share capital is a minimal investment of S$1, while minimum paid-up capital is not required.
Setting up a Company in Singapore as a Foreigner
Companies limited by shares is the preferred entity type for foreigners as:
Corporate tax is fixed at 17%
Tax rebates on the first S$200,000 profits each year
Dividends and capital gains are not taxable
Shareholders are not personally liable for debts and losses of the Company
Directors and Shareholders can be a different person(s)
A large number of free trade agreements (FTAs): 44 active agreements
Cost for incorporating a Company in Singapore
Name reservation paid to the government: S$15
Incorporation fee paid to the government: S$300
Understanding that there are quite a handful of documents to be submitted and processes that require thorough management, it could be overwhelming for people who have just started exploring the nation’s regulations on this matter. In addition, it would be best to leave the administration part to professionals in order for the players to focus on the goals of the business itself. We believe that you wouldn’t want to miss any steps when just getting started.
ForBis is a trusted social enterprise that has extensive experience in assisting companies—both local and foreign-kick-start their business. Talk to us today to accelerate your goal in building your own empire, and let ForBis do the leg-work for you.
For more information, kindly check out the ForBis Accounting website at: https://sgcompanysetup.com/
Incorporation FREE inclusive of S$315 govt fees
Professional Corporate Secretary S$750/year
Nominee Director S$2000/year + S$2000 refundable security deposit
If applying for EP, then just $700 per quarter
If at least 1 director is a Singapore citizen, PR or EP holder, then not required.
Registered address including scanning & forwarding service
Not required if you have an address in Singapore