When opening a company in Singapore, it’s important to understand the regulations. The most common structure is a private limited company. The company must have at least one shareholder who is a citizen of Singapore or holds an EntrePass.
After successful registration, you must obtain a soft copy of the Company Business Profile for legal and contractual purposes. The cost is nominal.
If you are planning to open a company in Singapore, there are certain taxes you need to know about. You should also understand the different types of business structures available in Singapore and how they differ in terms of taxes and legal requirements.
Whether you want to open a private limited company, a sole proprietorship, or an LLP, the first step is to select a suitable trading name and register it with ACRA. Then, you need to fulfil added compliance requirements, such as preparing accounts and director’s reports and filing annual returns.
If your business expects an annual turnover of more than S$1 million, you need to register for Goods and Services Tax (GST). This is a tax on all goods and services provided in Singapore. The rate is 8%, and it is collected by the business from customers. The GST is then submitted to IRAS. It is important to note that this tax is only applicable to businesses registered in Singapore.
Singapore’s reputation as one of the best places to start a business has led global investors to take note. Investors such as Dave McClure’s 500 Startups and established venture firms like DFJ have stepped up their activity in Singapore, where the government has created an infrastructure to support start-ups.
Compared to other countries, the process of incorporating in Singapore is relatively simple and straightforward, with clear rules and efficient bureaucracy. The most important aspect is deciding on the type of company to register, with the private limited company being the most popular choice for entrepreneurs due to its scalability and flexibility.
If you want to relocate and work in your newly registered company, you will need an EP (Employment Pass). You can engage a Singapore-registered filing agent like InCorp to submit the application on your behalf. The process usually takes a few days, depending on how fast you can act. You will also need to provide certified copies of your passports, business profile, and Company Constitution/Articles of Association.
Access to markets
Singapore’s location in Asia makes it a gateway to the region’s fast-growing consumer markets. It also offers a robust infrastructure and well-established capital markets. Its stable economic environment and low taxes are a big draw for companies looking to expand internationally.
Singapore ranks second in the World Bank’s Ease of Doing Business index. It is an international trading hub with easy access to global markets and a highly efficient logistics network. Its excellent reputation in the region helps boost business with regional partners and suppliers.
The city-state is a popular destination for entrepreneurs thanks to its vibrant start-up scene and low corporate tax rates. The country’s stability and strong financial system make it an attractive place to do business, spurring a global investment boom.
Foreigners are welcome to register a Singapore company, as long as they fulfil certain requirements. They must have at least one director who is a Singapore citizen or permanent resident, or a holder of an Employment Pass or EntrePass.
Ease of doing business
When you register your company in Singapore, you can choose from a wide range of business entities. You can even start a business from overseas while operating it in Singapore. However, you must have at least one director who is a citizen of Singapore. You also have to deposit a minimum amount of paid-up capital in Singapore.
To make your venture successful, you must have a well-planned business plan and initial financial forecasts. The next step is to determine how you will fund the company. You can open a Singapore bank account online for your business. You will need to provide a registered address and nominee director, but you can use your business’s Singapore office address as your Singapore corporate bank account address.
Another advantage of doing business in Singapore is its low tax rate. Its corporate tax is only 17%, which is very low compared to other Asian countries. It also does not impose taxes on dividends and capital gains, and has double taxation agreements with many foreign countries.open company in Singapore