Singapore, a tiny island nation, ascended to the top of the World Bank’s list of the best countries to do business six years ago and has been there ever since. The procedure for forming a corporation in Singapore is straightforward and devoid of red tape. Furthermore, the government offers tax breaks to a new company registration Singapore process and helps them with a range of schemes in their early stages. Using a registered filing agent to form a corporation in Singapore helps both local and international entrepreneurs. This is especially true for foreigners seeking to establish a new company set up in Singapore.
Foreigners are not allowed to self-register and may instead hire a local business incorporation firm to incorporate a corporation in Singapore. In addition, they must secure a Singapore work visa or pass. Professionals in the new company set up process will guide you in the right direction for the company registration Singapore process, saving you time and money.
Aside from its business-friendly rules and flexible immigration policies, one of the primary reasons Singapore has dominated the list for so long is its simple tax filing scheme. In this post, we will discuss the five factors to remember when starting a new business and company registration Singapore procedures.
#1 Minimum conditions for beginning a company in Singapore
Singapore offers the following incentives to new businesses:
- There must be at least one shareholder and no more than fifty. International shareholding of 100 percent is permitted in the case of private limited companies.
- The minimum paid-up capital required to start a company registration Singapore process is one Singapore dollar. Companies will add new resources at any moment.
- While both Singaporeans and foreign residents can serve as directors of a Singaporean corporation, at least one of them must be Singaporeans. This may be a Singaporean citizen, a permanent resident, or an Entrepass holder.
- If you incorporate a company in Singapore, you must employ a qualified company secretary within six months of doing so. The secretary must be a resident of Singapore.
- A local address is needed for every new Singaporean corporation. This cannot be a P.O. Box number.
#2 Determine the company’s legal arrangement
Despite the fact that alternative options exist, many emerging firms tend to file as private limited corporations with the Accounting & Corporate Regulatory Authority (ACRA) due to their scalability. Furthermore, lenders are not liable for debts or damages incurred in excess of their equity value. Since it has been designated as such, the new company set up is a taxable enterprise.
#3 Set up your company
The Singapore Companies Act regulates the private limited business, and it must abide by the rules of ACRA and the Singapore Inland Revenue Authority (IRAS). Among the different titles are:
- The business name must be accepted by the ACRA.
- It is necessary to have at least one shareholder.
- At least one of the directors must be headquartered in Singapore.
- Company Secretary – Must also be a Singaporean resident.
- Paid-up capital of at least S$1
- For registration, a physical office address is given.
As a newly founded company registration Singapore entity, you can purchase a business profile from ACRA. This electronic report contains details about your business, such as your UEN, registration date, shareholders, and so on. This profile will be used to open a corporate bank account, apply for licenses and permits, and perform due diligence on potential business partners as part of the new company set up process.
#4 Factors that can affect the choice of market structure
The total number of shareholders, members, and associates would be an important factor in the organization of your company. If you want to be a sole proprietor, establishing a sole proprietorship might be beneficial. You will have full authority over all business decisions. Forming an LLP can be useful whether you are two or more professionals/companies with complementary skills. Forming a private limited partnership could be a reasonable choice for you if you are a group of 1-50 individuals who want to buy a majority of the company’s resources at low risk.
#5 Events after registration
- Permits and permits – Some commercial activities require approval or a license from the government. Examples include private schools, video companies, travel agents, drug dealers, money lenders, insurers, financial consultants, childcare centers, and liquor importers, wholesalers, and retailers.
- Authorized working hours – your office address and hours must be registered for at least three hours per weekday.
- Registration number – All documents used for official corporate correspondence must have the ACRA company registration number.
- Customs registration – If your business imports or exports products, you must register with Singapore Customs.
- Registration for the Goods and Services Tax (GST) – The Goods and Services Tax (GST) is a tax levied on the supply of goods and services in Singapore, as well as the import of goods into the country. If your gross income reaches S$1 million a year, you must register for GST.
- Registration with the Singapore Central Provident Fund (CPF) – The CPF is a mandatory pension fund plan in which both the contractor and the Singapore citizen/permanent resident employee pay a portion of their monthly salaries to the fund.
Incorporate your company today
The primary reason why many company owners want to integrate in Singapore is taxation. Singapore has market-friendly tax rates and a plethora of tax incentives to encourage business growth and entrepreneurship, making it a smart choice to incorporate a company there.
When deciding where to base yourself, incorporating a business in Singapore is a reasonable choice. Stable economies, labor markets, and business-friendly tax policies enable you to get up and running quickly, enabling you to spend less time tangled in paperwork and more time expanding your business. WLP Group is Singapore’s leading supplier of company formation services. We are well-positioned to provide the organization with a wide range of facilities, including work permits and transfer, payroll and taxation, corporate licenses, company clerk, and trademark registration. Contact us today to start the process of integrating your company.