Singapore is the “Asian Tiger”, which has demonstrated unrivaled economic growth and prosperity since the end of the last century. Loyal administration, low taxes and free enterprise allowed this city-state to become the leading financial center of the world. Registering a company in Singapore is an excellent solution for businessmen who want to take advantage of the prestige of the world capital of finance.

 

 

Strengths of Singapore jurisdiction

Benefits of opening a company in Singapore:

  • prestige in the world market;
  • minimum taxes;
  • a large number of benefits;
  • availability of registration.

If you want to set up a startup or a global enterprise, registering a company in Singapore is the best option for starting a business. Lawrange will help organize comprehensive legal support in your endeavors.

 

 

Modern popular business areas

Registering a company in Singapore will be a profitable step for those wishing to work here in the field of:

  • Tourism – more than 12 million tourists from all over the world visit this country every year. The opening of a hotel, a restaurant business, retail outlets, a taxi service and car rental will be promising.
  • Agriculture is an industry that Singapore pays special attention to. Demand for food products here exceeds supply, and, moreover, there is little competition in the market.
  • Biotechnology – the government creates optimal conditions for the active promotion and development of the biotechnology industry, and also welcomes the attraction of foreign investment.
  • Logistics, transport – the transport business can be of any scale, the main thing is to obtain all the necessary licenses.
  • Wholesale trade – you can register a company in Singapore, which will automatically gain access to the markets of the US and other leading countries.
  • Fintech – The Singaporean government is committed to maintaining a safe, controlled environment for launching innovative start-ups. There is a Fund for Innovation and a number of other grants and schemes that help develop the fintech sector.

 

 

Possibility of remote registration

Registration of a company in Singapore is a fully computerized process, controlled by the Accounting and Corporate Regulations Authority (ACRA). In most cases, registration takes about 3 days. It is enough for the applicant to use the state online system BizFile. In the future, information and reporting are submitted through the same portal. The main thing is to have FIN No. and Singpass.

 

 

Corporate taxation

Singapore has a single-tier corporate taxation system, under which the payment of tax on corporate income is not an obligation of shareholders. In other words, dividends are not taxed. At the same time, the income tax rate here is fixed at 17%, thanks to which Singapore continues to attract large investors from all over the world.

Important! The presence in this jurisdiction of special government programs for tax exemptions and benefits contributes to a significant reduction in the effective tax rate.

 

 

Attitude towards foreign investors

Singapore is one of the most attractive locations for foreign investment. Over the past 10 years, the country has increased the volume of accumulated investments by more than 3 times. At the same time, most of all they invest in the financial sector, as a result of which the role of Singapore as the most important financial center increases.

The growth of investment attractiveness of this jurisdiction is explained by:

  • Conducted policy of “open doors” for foreign banks and companies.
  • Efficient operation of state institutions responsible for regulating the activities of foreign enterprises.
  • Carefully thought-out tax policy, etc.

 

 

Banking system

Main advantages:

  • Uninterrupted work with minimal risks for clients.
  • An integrated approach to the provision of services, including corporate and investment.
  • There is no risk of losing money, which is provided by the state deposit insurance program.
  • Introduction of highly developed Internet banking.

If you are interested in registering a company in Singapore that is related to small or medium-sized businesses, then you will be pleasantly surprised by the wide range of financial services offered by local and foreign banks. The Singapore banking system equally effectively meets the needs of both small and large enterprises.

 

 

Features of the legal system

The Singaporean legal system is based on English case law. In the entire Asian region, it is considered the least bureaucratic, and within the framework of the World Economic Forum, the Singaporean legal system was recognized as the most effective. By ensuring the continuity of the law, Singapore has been able to become Asia’s leading business and legal center. This jurisdiction is one of the top three in terms of intellectual property protection.

 

 

Choosing an organizational structure when registering a company in Singapore

In the Ease of Doing Business Index, Singapore has been ranked number one for the past year. From the point of view of taxation, international trade opportunities and solvency regulation, this jurisdiction is attractive for entrepreneurs from all over the world.

The following types of business entities are most popular here:

  • Private Company Limited By Shares – structure similar to LLC. Shareholders can be chosen from both individuals and legal entities. The liability of the members of the company is limited to their contributions to the authorized capital. The corporate tax rate is 9% if the income is up to SGD 300,000 and 17% if the profit exceeds SGD 300,000.
  • Partnerships – General Business (GP) and Limited (LP) must consist of a minimum of two partners. Registration of such partnerships is characterized by simplicity. In the future, GP and LP are characterized by tax transparency, which is ensured by individual taxation of each partner.
  • Sole ownership (Sole Proprietorship/Sole Trader) – in a different way individual entrepreneurship. The company is owned and operated by one person, who bears all responsibility for the obligations. Profits are subject to income tax at a rate of 0-17%. Registering an individual entrepreneur is quite simple, while minimal management requirements are put forward. However, it should be understood that only residents, permanent residents or Entepass owners can open a company in Singapore in the form of an individual entrepreneur.
  • Limited Liability Partnership (LLP) – the partners’ liability is limited to the amount of the investment. To open, you need at least 2 partners, and the presence of a minimum capital of $ 1, as well as one manager, who must be a resident. LLP is not limited by the maximum number of participants, is not affected by bankruptcy.

 

 

Step by step registration

Registration of a company in Singapore online begins with consultations during which the objectives of the new enterprise are discussed. Together we will choose the optimal company structure, learn about licensing requirements and the nuances of creating a standard company charter.

An important preparatory stage is the choice of the name of the enterprise, the determination of the number of shareholders and the value of the shares. It is also worth deciding on the director (cannot be a legal entity), secretary and charter.

After receiving the necessary information, Lawrange specialists will plan the entire registration process in detail to increase transparency and reduce any risks in the implementation of the project. We will help you register a company in Singapore online, we will certify all documentation.

Important steps for direct registration are:

  • Submission of documentation to ACRA through the state portal BizFile.
  • Approval of registration – usually 3 days after application.

 

After that, you can proceed to opening a bank account, performing additional registrations, licensing.

 

 

Primary requirements

To register a company in Singapore, you need:

  • copies of the founders’ passports
  • three options for the name of the future enterprise.
  • a document confirming the address of residence for all participants in the company (utility bill or bank statement indicating the address);
  • additional proof of identity (eg driver’s license);
  • business presentation in free form;
  • answers to questions about the company at the request of our lawyer.

We prepare the rest of the documentation (certificate, receipts, certificates of directors and power of attorney) ourselves – you get rid of the need to waste time and money on bureaucratic red tape.

 

 

Register a company in Singapore: what you need to know before opening

Singapore law inherits from English law. The city has adopted important traditions that relate to the freedom of commercial activity and an adequate system of taxation. The most attractive legal form of business ownership, as in other British regions, is Ltd (an analogue of a limited liability company). There is also a solution for self-employed individuals.

Businesses registered in the city are required to conduct an annual audit. Exceptions apply only to small firms (startups).

Registering a company in Singapore is a solution that opens up a large number of options specifically for international activities. Local legislation provides serious relief for foreign investors and organizations. At the same time, the city-state is not an official offshore, which guarantees the preservation of its reputation and image on the world stage.

The average business registration time is about 3 business days. This speed is provided by two factors: a fully automated public service system and the professionalism of the Lawrange team.

 

 

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Features of registering Pte Ltd

This dynamic structure can have up to fifty participants, but at least 1 director must be local. The organization receives a separate legal status, and subsequently will be able to purchase / sell real estate on its own behalf. Available for Pte Ltd:

  • Conclusion of contractual transactions.
  • Purchase of assets.
  • Participation in litigation on behalf of the company.
  • Opportunity to increase capital.

 

If the shareholder loses solvency, the company will continue to exist, since an easy procedure for transferring assets is provided.

 

 

Building partnerships

Partnership owners are fully responsible for the company’s obligations. Every year you need to go through the registration renewal procedure. Unlike other forms of business, partnerships do not need to provide ready-made reports to ACRA. If the owner is an individual, then the tax corresponds to the personal income tax rate, if a legal entity, the corporate tax rate is applied.

 

 

What you need to know about sole proprietorship

Often this form is preferred by retailers and service providers with minimal risk. The entrepreneur gets full control of the business, no profits are shared, and there are few compliance requirements at registration. After registration of the IP, there is no need to submit annual reports.

 

 

Registration of a subsidiary

The subsidiary is liable for its own debts. Must have:

  • a copy of the certificate confirming the registration of the parent company;
  • confirmation of the legal address;
  • confirmation of information about directors from the Register;
  • a decision whereby a person is authorized to certify documents on behalf of the parent company;
  • passport data of directors.

 

 

Structural features of the company

Regardless of the chosen form, the presence of directors is important. Only citizens of Singapore or those who have received any of the following are eligible for this position:

  • business visa (Entrepass);
  • Employment Pass;
  • Dependent Pass.

 

The remaining directors (if there is more than one) may be non-residents, must be of age and not have problems with the law in the past. All data about them are placed in an open register.

Also required is:

  • Secretary – when appointed to a position, an appropriate application-consent to perform the function of a secretary is submitted.
  • Shareholders – from 1 to 50 depending on the chosen form.
  • Beneficiaries – information about them is in the central non-public Register.
  • Authorized capital, shares.

 

 

Opening a company in Singapore for a non-resident

You should choose a name officially confirmed by ACRA. It should not repeat already existing names. If certain terms are used, such as “finance” or “broker”, an appropriate license must be obtained. It is possible to reserve a name for up to 4 months.

Opening a company is impossible without the preparation of documents, which, among other things, include the Charter and information about the leaders of the company. The charter describes a set of rules and procedures in accordance with which the activities of the organization are regulated, etc.

If the shareholder is an individual, then you must provide:

  • A copy of his passport.
  • NRIC.
  • A document confirming the place of his residence.
  • Summary.

 

Corporate shareholders are required to:

  • CCI.
  • Name, ULE and legal address.
  • Information about payment of capital and shareholders.
  • Defining the scope of the company.

 

 

Offshore registration in Singapore

For these purposes, it is also necessary to choose a suitable free name for the future enterprise. It is important that it does not violate already registered names. The name indicates the form of ownership, for example, Pte Ltd.

Registration of an offshore company in Singapore can take place without a personal presence. It is allowed to perform all necessary procedures by a trusted person, which can be a Lawrange lawyer. On average, it takes up to 2 weeks to review an application and make a decision. Separately, it takes time to collect the necessary documentation package.

The complete list of documentation includes up to 30 titles. For example, you will need to go through the licensing process to pay GST. In general, registering an offshore company in Singapore is quite difficult, so we recommend contacting Lawrange specialists if you want to avoid unnecessary mistakes and waste of time.

 

 

Open a bank account in Singapore

After the successful incorporation of the business, it is time to open an account in one of the Singaporean banks. With its help, it will be possible to manage finances and track transactions. You should be prepared for the fact that many banks in Singapore require the personal presence of company executives. There are several dozens of various banks that set commissions that differ depending on the minimum deposit, the currency used, etc.

 

 

Startup support

The government policy of this jurisdiction promotes the growth of innovative activity among enterprises. All sorts of grants and tax incentives for startups are being introduced here. Moreover, residents and non-residents can take advantage of benefits equally.

Some of the government startup support programs are:

  • StartupSG – helps to simplify the integration of promising companies into the global economic space.
  • Startup SG Founder – in addition to financial assistance provides mentoring and guardianship.
  • Startup SG Tech – provides additional funding for startups that develop and promote their own technologies.
  • Startup SG Equity – does not carry out direct government investment, but stimulates the private sector of the economy.

 

In addition to government support, Singapore has many private programs that help innovative businesses get on their feet faster.

 

 

Taxation

Local businesses are required to pay the following taxes, which must be taken into account before opening a company in Singapore:

  • corporate. Base rate – 17%;
  • for dividends. Rate – 0%;
  • for capital gains – 0%.

 

It is noteworthy that if an organization conducts international activities (outside the territory of the state), then it may not pay corporate tax (there is a floating rate from 0% to 17%). Thus, taxation in Singapore is minimal, which guarantees the growth of commerce.

 

 

Cost of opening a company in Singapore

The cost of starting a company in Singapore is:

 

  • company registration 1650 USD;
  • registration address for a year 250 USD;
  • nominee local director 1800 USD per year and 1800 USD deposit;
  • employment pass application 1950 USD (if necessary);
  • obtaining additional licenses and permits for the company depending on the activity – on request.

 

 

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Benefits of cooperation with our company

Lawrange is ready to provide a full range of services, thanks to which it will be possible to open a company in Singapore as quickly and easily as possible. Our specialists have all the necessary knowledge in the field of Singaporean law and extensive experience in assisting with the registration of enterprises in this jurisdiction. We ensure the reliability and security of all client data. Other benefits:

  • Efficiency – it is the result of an individual approach to solving a specific problem.
  • Transparent policy – if you are interested in registering a company in Singapore, the price is final, without the risk of its increase in the future. Each service and its cost is pre-negotiated.
  • Availability – it is easy to keep in touch with us, we are always there.

 

 

Conclusions

Singapore is attractive for entrepreneurs and multinational companies. In this developed jurisdiction, which has a strategically advantageous location and practices a favorable tax policy, all the necessary conditions for successful business development have been created. Regardless of whether you want to open an offshore in Singapore or a startup, you will have all sorts of benefits, access to the international market and a number of other advantages. The main thing at the same time is to enlist the support of Lawrange professionals who are familiar with all the nuances of opening a company in Singapore.

 

 

FAQ

What type of company is better to open in Singapore?

Local LLCs are the most attractive in terms of taxation.

 

Is it possible to open a branch or subsidiary in Singapore?

Yes, according to Singaporean law, this can be done, but it is important to take into account a number of nuances. For example, a branch cannot be considered a resident, so preferential tax rates are not available to it.

 

Can a company be wholly owned by a foreigner?

Yes, 100% foreign ownership of a company is acceptable in this jurisdiction.

 

 

 

 

 

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