Singapore Business Environment Overview
One of the top business-friendly countries in the world, Singapore, is characterized by a robust political system, high-quality infrastructure, and strategic location. As a result, it attracts multiple international organizations that succeed on a local market and find ways to reach Asian markets. What are the other peculiarities of the country’s business environment? What makes Singapore so unique? Singapore is a combination of a big globalization-oriented world and a small local market where anyone can find the best idea for invasion. Therefore, in 2021, Singapore is ranked as one of the most attractive places for setting up and running a business for beginners.
Why Register a Company in Singapore?
Choose Singapore? This is the question the reader may ask. A low corporate tax, strong skills in trading, staff in all categories, and easy registration for all those who are not residents – this is how I can define Singapore using one sentence. Imagine an example of a beautiful Swiss watch, but it can move in the free and quickly make a comeback. Thus, registering your company in Singapore takes not more than 14 days while setting up and starting a business- less than one day as this is a well-oiled machine that is always ready to perform.
Types of Business Structures Available
Not to disregard the registration but to outline, it is important to examine the existing types of business structures.
Private Limited Company: the most common structure that offers shareholders limited liability.
Sole Proprietorship: More suitable for poor businesses and makes the owner personally liable for debts.
Limited Liability Partnership: a company-mimicking combination
Branch Office: an extended fragment of a foreign company with no legal specificities
Representative Office: targeting market evaluations, non-profit generating activities
Choosing the right structure for your core activity entirely depends on responsibilities, the model of profitability, and frameworks for future expansion.
Eligibility Criteria for Non-Residents
The good news is that Singapore is open for business and welcomes foreigners to create their own companies. However, there are several factors that you have to follow:
At least one resident director: you need to have at least one director who is a Singapore citizen, permanent resident, or holds an EntrePass, Employment Pass, or Dependent Pass.
Company Secretary: you have to appoint a qualified company secretary and engage them within 6 months of incorporation.
Shareholders: one company can have a minimum of 1 and a maximum of 50 shareholders; they can be both individuals and corporations.
What are the key requirements for the company registration process?
To start a business in Singapore, you have to correspond to the following criteria and gather the documents listed below:
Unique Company name: ACRA should approve your choice of name after checking all current entities.
Registered Office Address: A local office must be registered.
Memorandum and Articles of Association: A structure according to which your company will operate.
Paid-Up Capital: A minimum of SGD 1 is required as paid-up capital.
Step-by-Step Guide to Registering Your Company
Let’s briefly go through the company registration process together.
Choose your company’s name: Make sure it’s one-of-a-kind and doesn’t violate existing patents or trademarks.
Prepare all documents: The MAA, passport copies of directors and shareholders, and address proofs are a must.
File an application with ACRA: Submit an online application on the BizFile+ website. Wait for the approval: this process can last between 1 to 2 days.
Receive the certificate of company incorporation: the final step is receiving a certificate from ACRA that confirms your company has been legally incorporated.
Costs Involved in Company Registration
As simple as the process appears to be, one also needs to keep in mind the costs involved. Below are the various fees you will incur:
Amount for Reservation of the Company Name: $15.00SGD
Registration Fee: $300.00 SGD
Post which the cost would vary depending upon how you hire the professional services. Apart from that, one may also need to incur additional costs for the registered office address and resident director.
Benefits of Instituting a Company in Singapore
Setting instrumentality in Singapore offers the following benefits:
Tax advantage: Appreciate an excessive variety of taxes compatible with an extremely low company revenue enhancement rate in India.
Cheap full: Singapore’s strategic city spot is the gateway to the Market economies of Asia.
Legal significance: Incorporation in Singapore provides you with a robust, transparent, and surefire legal system.
Induction to funds: Trade in Singapore is accessible. For instance, there are various grants and renunciation accessible in Indian investment companies. This makes Singapore a particularly magnetic place for the majority of foreign entrepreneurs to find their businesses.
Taxation Policies for Foreign Entrepreneurs
Singapore has one of the world’s most convenient taxation lifestyles. The whole corporate revenue enhancement rate is 17% and a big perk for foreign startup investment firms incorporates the republic with DDAs that ensure that you are not radical on the corresponding profits at extra time.
Common issues and solutions
Like any other company, constituting Singapore has a summary kind of complications. numerous problems incorporate recognizing the rules, employing a fellow worker, and realizing that there are outlined differences. It easy addressed to your CPA, work consultant, or local section or organization when in question.
Post-Registration Compliance
Once you are registered, the work does not stop there. You will need to stay compliant with several post-registration requirements
Annual General Meeting: Must be held within six months after every financial year end.
Filing Annual Returns: Annual returns must be filed with ACRA within seven months from every financial year-end.
Keeping Financial Records: You need to maintain proper accounting and submit audited financial statements where required.
Opening a Corporate Bank Account
This is the most important step after post-registration. The corporate bank account will allow you to have proper transactions and make it easy for reporting and auditing. Most banks in Singapore may require face-to-face meetings with the directors, so it is important to know when you are visiting.
Employment Pass and Hiring Foreign Workers.
If you will need to employ foreign workers or relocate to Singapore to work in your company, you may need to apply for appropriate work passes such as the Employment Pass and S Pass. These are necessary to allow an non-resident to work legally working in your company in Singapore.
How to get help: Engage Services
Are you a home with the hassle? Do not worry; there are companies that offer more than registration fantastic services from name reservation to full post-compliance.
