Unlocking the Benefits of Company Registration in Singapore: A Comprehensive Overview
Singapore is a great market to enter if you want to expand your business into Southeast Asia. In addition, you can claim the benefits of company registration in Singapore. Accounting & Corporate Regulatory Authority (ACRA) acts as the Company Registrar.
If you have long-term plans and trust in your business plan, go for a private limited company registration. You will need to apply to ACRA. As a foreign entrepreneur, you must hire a provider of services for company registration in Singapore. The process is simple and usually takes about 1-3 days.
If you are new to the Singapore market, clear your doubts by knowing the benefits of company registration.
6 Key Benefits of Company Registration in Singapore
1 Affordable Corporate Tax Rates
Singapore is a pro-business marketplace. The companies pay their corporate tax at a flat rate of 17%. The rate is more affordable than the rates in many countries.
A tax resident company can claim tax benefits, exemptions, and rebates. So, their effective tax rate is around 8.5% – 9.5%.
Singapore provides a tax exemption scheme for qualified startups. These are private limited companies. They can claim tax benefits of company registration in Singapore for their first three consecutive Years of Assessments (YAs). They can claim:
- 75% tax exemption on their first $100,000 of normal chargeable income; and
- 50% tax exemption on their next $100,000 of normal chargeable income
Singapore provides tax exemptions and benefits to tax resident companies. You must manage and control from Singapore and hold the Board meetings locally to qualify.
2 Politically, Singapore is a Stable Country
Politically, Singapore is one of the very stable countries in Southeast Asia. It has a strong rule of law. It is almost a corruption-less society.
It has reliable air and sea connectivity with the outside world. And it has highly reliable communication networks providing top-notch telephone, mobile phone, and internet coverage.
No wonder Singapore ranks 2nd for the “Ease of Doing Business” indicator.
3 Strong IP Protection Laws
Singapore has rapidly come up as a hub for robust IP protection laws. In Asia, Singapore has the toughest intellectual property (IP) laws. It has attracted global companies active in Research and development field.
4 Qualified and Skilled Workforce
Singapore has attracted qualified and skilled professionals to its workforce. MNCs find these English-speaking professionals highly employable. Singapore ranks high when evaluated for the current legal framework. Its workforce also comes true when evaluated for productivity, attitude towards work, and depth of technical skills.
5 Geographical Location
Singapore straddles the sea links carrying 5 trillion of cargo between the East and West.
This Southeast Asian country is strategically located to be a crucial part of the global supply chain.
Singapore offers robust air links to emerging markets in Asia. These are why entrepreneurs and corporates beeline to register company in Singapore.
6 Easy Incorporation
The process for company registration in Singapore is simple. You only need one Singapore dollar in initial paid-up capital to register company in Singapore.
Company Registration in Singapore
Entrepreneurs favour private limited company registration. This business structure is dynamic and scalable. However, you must fulfil the following pre-incorporation requirements to get the benefits of company registration.
Pre-Incorporation Requirements
- At least 1 local/resident director
- At least 1 shareholder (maximum 50)
- At least one company secretary
- A registered physical office address
- At least $1 in initial paid-up capital
Local/Resident Director
You must provide at least one local or resident director for your company registration in Singapore. Select someone who is ordinarily a resident of Singapore.
You can choose a Singaporean, Permanent Resident, or EntrePass holder. You, as a shareholder, can also act as a local director, provided you have the local address. If necessary, you can also hire a nominee director.
Shareholder
You need at least one corporate or individual shareholder for company registration in Singapore. Foreigners can also own 100% shareholding in their company. A maximum of 50 shareholders can form a private limited company.
Shareholders’ agreement dictates the ownership, rights, responsibilities and privileges of the shareholders and the company.
Company Secretary
Every Singapore company must appoint a secretary within 6 months of its incorporation date. Secretary is the chief compliance officer of the company. These professionals are familiar with the legislation and statutory regulations. They work to ensure their company’s compliance.
Choose a company secretary carefully. Choose someone with knowledge of the Company Law, experience, and academic qualifications necessary to discharge this role. Choose an individual, ordinarily a resident of Singapore.
Local Singapore Address
While filling out the application to register company in Singapore, you have to provide a local registered address. The government agencies like ACRA, IRAS, and MOM use this address to officially communicate with you.
Please note that the Post Office Box address is not valid. And if you are registering a home office, make sure to take permission from the proper authorities. You must keep your office open during office hours for the investors to visit. Or, you can use a Virtual or Registered Office Address Service.
Capital
You need only one Singapore dollar in the initial paid-up capital when starting a company. Later on, you can add to it.
SBS Consulting Pte Ltd provides services to register company in Singapore. Please provide us with your incorporation and KYC documents when you are ready to enjoy the benefits of company registration.
With your documents in hand, we will:
- Visit the ACRA’s website
- Initiate the process to register your company name
- Apply to ACRA to register your company
ACRA takes about 1-3 days to register a company then it sends an Incorporation email to you. It contains details about your new company.
If you have any doubts, call us at +65-6536 0036 or email us at info@sbsgroup.com.sg to learn about our Singapore company formation services.
