Singapore Company Incorporation: Things You Should Know Beforehand
Can I opt for a Singapore company incorporation? Is this the question in your mind? Well, practically anyone over the age of 18 can go for business incorporation Singapore. Here is how you should go about it.
1. Research the Market
Research your target customers, competitors, and market conditions.
Accurate customers’ demographic data like age, wealth, family, interests, and wants help in revealing opportunities and reducing business risks. Quantifiable info helps you in making data-driven decisions about the market: size, demand, purchasing ability, pricing, etc.
2. Prepare Business Plan
A business plan is the blueprint of your business. You will need it to convince your investors, lenders, and employees. Detail each step of setting up of business, structuring, managing and expanding your new business. Stakeholders want as much info on the ROI or potential job opportunity with you.
3. Funding for Your Singaporean Business
How you fund your new business is going to impacts its structure and management. If you successfully address your business’s specific needs, it will help in growing it hassle-free. You could explore self-funding, venture capitalist, angel investors, or Crowdfund it.
4. Choosing a Marketplace
Businesses look for lower tax rates, transparent laws, and easy compliance. Singapore offers you ‘Ease of Doing Business.’ The country ranks 2nd in the World Bank report 2020. The low tax rates, reduced cost of compliance and protection to your IP allow you to maximize your ROI.
Singapore corporate tax rate is the range of 0%-17%. GST is pegged at 7%. There is no inheritance or capital gain tax. Companies get In addition, Partial Tax Exemption and Corporate Tax Rebate. Startups can claim:
- 75% tax exemption on their first $100,000 of normal chargeable income; and
- 50% tax exemption on their next $200,000 of normal chargeable income
5. Singapore Business Structure
The local or foreign individuals can select one of the structures listed below for their Singapore company incorporation.
- Private Limited Company
- Sole Proprietorship
- Limited Liability Partnership
The local or foreign corporates can choose one of the structures listed below for their business incorporation Singapore.
- Singapore Subsidiary Company
- Branch Office
- Representative Office
6. Get ACRA’s Approval for Company Name
Your company name should be catchy and should inform your clients about its business activities.
It should:
- Not be vulgar or black-listed
- Be free of copyright or trademark issues
Visit ACRA’s website BizFile+ and check for the availability of a name for your proposed business incorporation Singapore. ACRA charges S$15 to register it.
7. Business Incorporation Singapore
You need at least a shareholder, local director, and company secretary for your business incorporation Singapore. You also need S$1 as the minimum initial paid-up capital and registered local office address.
8. Post-Registration Formalities
- Certificate of Incorporation
- Business Profile
- Get Licenses & Permits
- Register for GST
- Company’s Stamp & Seal
- Share Certificates
- First Board Resolution
9. Statutory Compliance
The company directors have to take care of their company’s compliance. They have to be prompt with:
- Financial year determination
- Appointing an auditor (if required)
- Convey changes in the company to ACRA
- Annual general meeting
- Unique entity number
- Registered office hours
- Pay CPF & skill development levy
- Annual returns filing
10. Open a Corporate Bank Account
Opening a corporate bank account streamlines your company’s financial transactions. The bank may ask your physical presence in Singapore.
Yes, this island country is one of the great business destinations in Southeast Asia for Singapore company incorporation. It’s per capita income is higher than the most developed nations. It means you will have ease in locating target customers. Collaborating with the right business partners can enhance your networking. It is a short-cut for allowing your business to take roots in a new business environment.
