Company Registration in Singapore: Benefits

Singapore is one of the most recommendable jurisdictions when it comes to company incorporation, and there are many reasons for that. We can mention its astonishing infrastructure, for example, which includes highway systems, subway, airport, commercial buildings, and Internet infrastructure. It has made a great leap forward in terms of technological development regulation and capital availability as well. What is more, Singapore’s economy is one of the most stable and robust ones in the world: it mainly relies on electronics manufacturing, export of machinery, and financial services, it has no foreign debt, and it shows a positive surplus every year. Looks like a jurisdiction to be looked at with more attention, doesn’t it?

This short post will focus on the procedure of company setup in Singapore. If you need more information, please visit our portal to see the article on Singapore company registration and use other links to discover this jurisdiction in more detail. We write on international business, banking, tax optimization, asset protection, investment, and other similar topics. You can book a free session with our expert to discuss your situation and find the best option for your business. We are ready to deal with all the administrative issues for you at a reasonable fee, so you can register a company and open a corporate account without much hassle!

Private Limited Company in Singapore

There are several legal company forms you can register in Singapore, but Private Limited Company (or Pte Ltd.) is gaining more and more popularity with non-resident entrepreneurs. This is the most common company form now, and virtually all new entities are registered as Private Limited Companies.

Let’s look at the minimum registration requirements:

• Company Secretary
• Resident Director
• Shareholder (an individual or a legal entity)
• Registered office in Singapore
• Paid-up share capital (at least SGD 1)

Here are the main characteristics of the legal form:

• The private limited company’s directors/shareholders are not liable for the company’s debts.
• Singapore Pte Ltd. is a local tax resident and it is entitled to take advantage of all available tax benefits and incentives.
• The private limited company can be a property owner.
• Pte Ltd. is an independent legal entity.
• The private limited company can have 1 to 50 shareholders, with no more than 20 of these being individuals. If corporate shareholders are available, the company must have one individual shareholder that owns 10% or more.

Exemption from Mandatory Audit: Conditions

• The total assets do not exceed SGD 10 million.
• The number of employees does not exceed 50.
• The total income does not exceed SGD 10 million.

Exemption from an Audit Report: Conditions

• The number of the company’s shareholders does not exceed 20.
• The sales figures do not exceed SGD 5 million.
• The company does not have a shareholder in the status of a legal entity at any time during the tax year.

Establishing a Singapore Company: Advantages

• The company is not liable for a capital gains tax.
• There is no tax on the income from foreign sources that is not repatriated to Singapore.
• If you set up a company in Singapore, you can be eligible for the SUTE (Start-up Tax Exemption) program. It will mean that you will have a tax exemption on the initial taxable income (SGD 100,000) amounting to 75%, while the next SGD 100,000 will be subject to a 50% exemption.
• There is no foreign exchange control.
• The dividends distributed to shareholders are not subject to any taxation.
• You will not be subject to any limitations on capital withdrawal/repatriation.
• Singapore maintains a very high level of personal assets protection and data security.
• You will be able to submit information and reports to ACRA online using an iPad or a smartphone. Use BizFile for that purpose (you will be required to enter SingPass and FIN No.).
• Bank confidentiality is maintained on a very high level.
• Singapore business is highly digitalized, which means that you can communicate with any government agencies and authorities in Singapore online. Follow the news on public services on Twitter.
• The local financial system is absolutely stable, and so is the Singapore dollar.
• Companies registered in Singapore are not considered offshore companies, which means that they will be treated positively by any banking institutions around the world. If you send copies of your company incorporated in Singapore to any bank in the world or visit it in person with a package of documents, the chances that you will get a corporate account on the best possible conditions are very high.
• Upon registration, Singapore private limited companies get an opportunity to acquire Singapore residency, which differentiates them from sole proprietorships and partnerships. Keep in mind, however, that this is just an opportunity and not the right to obtain a so-called EntrePass. We will discuss it later on.
• Foreign companies registered in Singapore can take advantage of all the rights accessible to individuals or local companies, but they will not be liable for their obligations.

That is a long list, and it definitely sounds impressive. We are sure you will appreciate Singapore as a really beneficial jurisdiction for business that has created all conditions possible for foreign entrepreneurs to feel welcome.

Conclusion

Singapore is a remarkable jurisdiction that offers really competitive tax rates to help businesses prosper, with the highest corporate income tax rate equaling 17%. As for VAT, it’s among the lowest in the world. The tax system for corporate (and personal) taxes is tiered, which gives the right to numerous tax exemptions for companies. You will also benefit from double taxation agreements that Singapore has concluded with 62 countries and investment protection agreements with the majority of the countries.

Interested in company establishment in Singapore? Please click on the above link to get in touch with our expert and discuss the prospects. If you have never set up companies abroad, you will need professional help to have a smooth experience, and we will be happy to help you jump through all the administrative hoops. We will provide assistance online, and all services will be officially provided on the basis of a contract. We wish you luck in all your business endeavors!

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