Why Company Registration Facilitates Business Expansion and Growth

The private sector has done its share to help Singapore prosper. Expanding businesses generate income and create jobs. It is why authorities here try to boost the formation of new companies. They have simplified the process of company registration in Singapore. Let us understand the other benefits of company registration in a hassle-free manner.

Benefits of Company Registration in Singapore

It is essential for a country to support its creative minds. These individuals develop innovative ideas to solve consumer problems or add value to existing solutions. They simplify everyday living. However, establishing a business to deliver these solutions is not simple.

It is why the Singapore government encourages business owners by providing tax benefits, rebates, and exemptions. Private limited company registration enables owners to limit their liability and taxes. Both foreign and local owners can claim these benefits of company registration in Singapore.

Small and Medium Enterprises

Singaporeans put their heart into supporting SMEs. It is especially true for the new, locally registered companies. They can claim benefits under the tax exemption scheme for new startup companies. The benefits are as follows:

• 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

They can claim tax benefits under Partial tax exemption as follows:

• 75% tax exemption on their first $10,000 of normal chargeable income; and
• 50% tax exemption on their next $190,000 of normal chargeable income

The majority of companies in Singapore are Small and Medium Enterprises (SMEs). These create numerous employment opportunities and help the government keep the unemployment rate down.

These businesses generate income and add tremendous value to the economy. Singapore authorities know their contribution and support their SMEs with tax benefits, rebates, exemptions, and other schemes to boost their productivity and competitiveness.

Singapore Private Limited Company Registration

If you want access to the tax and other benefits provided by the Singapore authorities, you have to opt for a Pte Ltd or private limited company registration. You need it to be a tax-resident local company whose management is located in Singapore.

Your Pte Ltd also needs to be registered as per the mandate of the Accounting and Corporate Regulation Authority (ACRA). ACRA acts as the Company Registrar of Singapore.

In addition, a register company in Singapore enables you to limit liability, reduce taxes, and run a company that has perpetual existence.

Business management-wise, Singapore Private Limited company is the best legal or business structure available to you to set up a company. Let us understand what a Singapore private limited company is:

• It is limited by shares which are held and sold privately. They are not listed on the stock exchange
• A minimum of 1-50 individuals can come together and form a Pte Ltd
• It limits the shareholder’s liability to their capital invested in its shares
• Pte Ltd is liable for its debts and losses. Its assets, if needed, are sold to pay its debts
• Your assets are not at risk as they are in the case of a Sole proprietor or a member of a partnership
• It helps protect your intellectual property from copycats
• Pte Ltd is a legal entity and has a separate identity from its shareholders
• It exists perpetually without depending on its shareholders
• It has the right to buy, own, and sell assets
• Pte Ltd can sue or be sued in a court of law
• It pays corporate income tax (0%-17%), which is lower than what a Sole proprietor or partnership member pays
• Lenders, like banks, consider Pte Ltd credible, which enables it to raise capital for its growth

Why You Should Register a Private Limited Company in Singapore

Corporate Tax

Singapore has kept the income tax rates affordable as it is a pro-entrepreneur marketplace. Your private company will only pay corporate tax at a flat rate of 17%. Sole proprietors and partners pay at the rate between 0%-22%.

In addition, as a tax resident, your company can claim various tax benefits. It will also have access to a tax exemption scheme for startups for the first three years. So effectively, you will be paying 8.5% – 9.5% of corporate income tax. It is a significant saving.

Singapore is Politically Stable

Entrepreneurs do not like political instability and do not invest in such a place. One of the greatest strengths of Singapore is its political stability. It is why owners opt for company registration in Singapore. It is what has made Singapore an excellent destination for Foreign Direct Investment.

Rule of Law

Singapore believes in the rule of law. They are updated regularly to meet the evolving situations and current needs. The country offers strict laws to protect your Intellectual Property. Many world-class companies in Research and Development have made it their home.

Red-Tape-less Society

Here, you don’t suffer due to the red tape. You also do not have to go door-to-door to obtain endless no-objection certificates. The obstacles that you, as an entrepreneur, have to overcome in other countries are absent in Singapore.

Company Registration in Singapore

In Singapore, it takes only 1-3 days to register your company. The process is swift, and you must complete only 2 steps. Both locals and foreign owners hire Registered Filing Agents to streamline the process.

If you need business licenses and permits, you can ask your agent or apply to the appropriate authorities, pay the fee and acquire them without any hassles.

It means you can set up and start enjoying the benefits of company registration by initiating your business activities sooner.

Corruption-Free Country

In addition, Singapore is almost a corruption-free country. Singapore bureaucracy is also pro-business. As a meritocracy, it gives preference to merits rather than to other factors.

Skilled Workforce

Singapore is home to world-class educational institutes and colleges. They reliably source qualified professionals for the business in Singapore.

In addition, Singapore also attracts qualified and skilled foreign professionals to its workforce. MNCs employ these English-speaking professionals. These are highly productive, work-oriented, and technically sound professionals.

Geographical Location

Singapore plays the role of an Entrepot for the trade worth 5 Trillion flowing between the East and West. It is an essential wheel in the global supply chain.

It has several logistical support companies that work to streamline the trade between Singapore and more than 700 harbours spread around the world.

Emmerging Marktes in Asia

In addition to maritime connectivity, Singapore has reliable air connectivity to emerging markets in Asia. You can reach these by air in 7-8 hours to be on the spot.

Communication Networks

Singapore has invested heavily in communication networks. It is a necessity when business owners need to communicate with their overseas clients. You can use telephones, smartphones, or the internet to get in touch with anyone abroad reliably.

If you want to implement your path-breaking business idea, go for company registration in Singapore. By doing so, you can protect it and enjoy the benefits of company registration. Your agent will advise and help you with the process. Call us at +65-6536 0036 or email us at info@sbsgroup.com.sg to talk to our company incorporation experts.