Singapore Incorporation Guide with Figures

Singapore is home to more tha 17,000 foreign companies. These companies have started their headquarters and regional offices so as to be within a spitting distance of more tha 2.8 billion consumers in Asia.

At present, Singapore ranks 2nd for the 'Ease of Doing Business' indicator in the report prepared by the World Bank. It also occupies 4th rank among the least corrupt countries. It is politically stable and has a strong startup ecosystem in place.

Singapore ranks 1st Competitiveness Ranking 2020 prepared by the Institute for Management Development World and for the infrastructure in Asia. All these factors attract business owners to set up their company.

Singapore Company Registration Procedure

They have to apply to ACRA, the Company Registrar. The process for Singapore company registration is swift and takes about 1-3 days. Completion of only 2 steps gets the owners their company.

The steps are:

• Company Name Registration
• Company registration

Individual business owners can use a Sole Proprietorship, Limited Liability Partnership (LLP), or Private Limited Company to start their business in Singapore.

Private Limited Company (PLC)

Majority of owners choose to set up a private limited company. It limits the liability of its shareholders to the capital they have invested in its shares. It can have 1-50 shareholders.

It is robust, dynamic, and scales well to fulfil the needs of a growing company. It has a legal identity, perpetual existence, and credibility. The investors, financial institutions, vendors prefer to deal with it.

Sole Proprietorship

A sole proprietorship has no separate legal identity. The proprietor's liability is unlimited and is liable for the proprietorship's debts and losses. A sole proprietorship depends on its proprietor credible image.

Limited Liability Partnership (LLP)

An LLP has 2-20 members who can be individuals/companies. It is a separate legal entity. The members' liability is somewhat limited. It depends on the member's mistakes, actions or inactions.

However, a sole proprietorship or LLP is not a company. Rather they are treated as business firms.

If you are contemplating a company registration in Singapore, you need to be careful in choosing the type of business structure. It can affect the taxes you pay. It can also affect your business' statutory compliance, account and finance provisions.

Documents Needed for Singapore Company Registration

You also need to submit the following documents with your application to ACRA.

• ACRA registered company name
• Business activities in brief
• Registered local office address
• Particulars of shareholders/directors/company secretary
• Foreign Individuals need to submit a copy of passport and residential address proof (overseas)
• Singapore Residents need to submit a copy of Singapore ID

Open a Corporate Bank Account

After registering a company, you also need to open a corporate bank account. Before selecting a bank, find out their transaction fees, interest rates offered initial deposit, availability of multi-currency accounts/ transactions, and transaction facilities. You may have to be physically present in Singapore to open a bank account.

Singapore is well-known for low tax rates. The corporate tax rate ranges from 0%-17%. The personal income tax ranges from 0%-17%. Goods Services Tax is fixed at 7%. The startups get 75% of tax exemptions on their first S$100,000 nominal taxable income.

Singapore has signed more tha 60 Avoidance of Double Taxation Treaties and numerous Free Trade Agreements and Regional Treaties with other trading countries. These treaties simplify cross-border trade for the Singapore companies.

Company registration in Singapore gives you access to one of the welcoming startup ecosystem in Asia. It also gives you access to various funding options. If you any queries call us on +65-6536 0036 or email us at info@sbsgroup.com.sg for answers.