Understanding the Very Basics of Establishing a Business in Singapore
However, you must note that while the laws are flexible and investor-friendly, there lies several compliance guidelines and formalities you must adhere to while incorporating a company. Therefore, to make this process seamless, it is prudent to seek professional assistance who can guide you at every step and make company incorporation in Singapore quick and hassle-free. Read on to learn everything about setting up a company in Singapore.
Benefits Of Forming A Singapore Company Registration Service Providers
- Dynamic Startup Opportunities
Holding the title of the World’s Freest Economy in 2020, Singapore has invariably emerged as one of the best countries for startups and growing businesses. In addition, setting up a company in Singapore offers additional advantages in the form of government aid and exemptions, making the process more seamless. Likewise, logistics, transportation, biotechnology, and finance are some prominent emerging industries, making Singapore Asia’s most notable digital centre.
- Prominence to Asia’s major economic centres
Even after being one of the smallest countries in the world, Singapore is famous for its prominence among Asia’s major economic centres. Moreover, this dynamic city boasts a GDP/capita of US$58,248, making it the most lucrative to incorporate a company.
- Exceptional tax benefits
While hefty corporate taxes in several countries can be challenging for many business owners, Singapore holds a lucrative tax structure with corporate tax rates varying from 0 to 17 per cent. Some primary tax advantages of incorporating a company in Singapore are as follows:
- Tax credit pooling
- Tax-free dividends
- No tax on capital gains
- Unilateral tax credit
- Reduced withholding tax on foreign-sourced earnings.
What Are The Different Forms Of Legal Entities Formed, And Why?
Once you plan to incorporate a company in Singapore, you can readily choose from different business entities. And after selecting your desired business entity, you must meet all the detailed criteria to incorporate a company legally recognised under the Accounting and Corporate Regulatory Authority (ACRA). Below is a tabular representation of different forms of legal entities that you can register in Singapore.
| Type of legal business entities | Nature of business | Minimum criteria required for specific business entity |
| Private Limited Company | The company’s associates, directors, and owners have fixed accountability for the company’s debts. |
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| Branch Office | This business entity defines the non-Singapore-based expansion of foreign entities with limited tax exemptions. |
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| Subsidiary Company | A holding firm with power over a subsidiary organisation must have 10% of the management. In addition, the subsidiary company follows the same regulations that apply to a private limited company. |
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| Representative Office | A temporary corporation type promotes the foreign business to explore the Singapore business domain and communicate with the local investors and businesses to comprehend their preferences. |
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| Limited Liability Partnership (LLP) | LLP (Limited Liability Partnership) enjoys the mixed advantages of a partnership firm and a private limited company. |
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What Is The Process Of Business Setup In That Country?
Once you choose the business entity type, you can begin the registration process of your company. Below are some primary steps required to incorporate a company in Singapore.
- Understanding and sticking to Singapore’s enterprise and trade regulations
Before incorporating a company in Singapore, it is prudent to remain well-versed with all the specified rules and regulations of the state. Also, it is mandatory to comply with all the applicable laws for successful company registration.
- Choose a suitable company title
After thoroughly understanding the trade requirements and making your business compliant with the appropriate laws, you can move ahead with choosing a relevant title for your business. However, remember that the company’s title should always remain coherent with the business statutes of Singapore, and the applied title should not be identical to other names registered and approved by ACRA.
- Completing registration application with the competent authority
Once you get approval on the company title and other criteria, such as business type, consent of the directors and Company Secretary, and supporting documents, complete the company registration application with ACRA. Nevertheless, carrying all the relevant documents for successful company registration is essential. - Successful company registration
If the competent officer (ACRA) thinks the applicant company fulfilled all the criteria, they will approve the registration, and the company promoters can begin the incorporation procedure. - Post-registration accountabilities
Even when your company gets registered in Singapore, you must still follow some compliance rules. And one of the most significant post-registration responsibilities is opening a company account. So ensure you maintain a bank account with Singapore’s regional or international bank. Furthermore, you must also carry all the necessary licences and permits along with a business website to diversify your reach among local audiences.
Records Required To Incorporate A Company In Singapore
Below is a list of documents you must submit to obtain a company registration certificate in Singapore:
KYC information, including a business profile and bank reference letter, with all the necessary details.
Approval letter of the company name.
ID copy of Singapore resident director.
Address proof and passport copy.
Particulars relating to shareholders, directors, and company secretary.
Memorandum of Association and Article of Association.
Details relating to the company’s registered address.
Any other required documents as may be specified by the concerned statute.
Overseas Direct Investment Regulation By The Reserve Bank Of India
The overseas direct investment regulation is the latest regulation mandated by the Reserve Bank Of India (RBI) to facilitate the ease of business in a foreign country. Moreover, the regulations by RBI aim to promote easier investment by Indian-owned foreign corporations in Indian companies, which earlier would be charged as round tripping.
Conclusion
To sum up, we can say that selecting the suitable business structure for your enterprise is just as vital as any other decision you make. Furthermore, it is more relevant when you are incorporating your company in Singapore. It might also not be wrong to say that your business operates more seamlessly and accomplishes better objectives when it holds the appropriate business structure.
And if you are looking for specialist professionals who can help you with your company incorporation in Singapore, look no further than Numbro. At Numbro, we have a team of dedicated professionals in India and Singapore with comprehensive expertise in entity formation to dissolution to streamline your incorporation process better.
