Benefits of incorporating a company in Singapore
This ease of doing business applies to both foreigner as well as investors. The reason is that Singapore has attractive tax rates and a strong, fast growing economy. Singapore’s tax rate for businesses is among the lowest in the world.
In the following section, you will see why you should incorporate your company in Singapore:
Incorporating a company in Singapore is very easy
Setting up a company in Singapore involves three not so complex procedures, which can be done in approximately 24 hours to three days at a substantially low cost once all documents and information are provided. The requirements of incorporating a company is straight forward and the procedures are very easy.
You do not have to travel to Singapore to incorporate a company. You just need to hire a professional accounting firm in Singapore who is a registered filing agent with ACRA and they will do all the work for you. They will do their due diligence checks and get ready all the needed paperwork for company incorporation. Subsequently, these professionals can appoint themselves as your named company secretary who will drive the company towards regulatory statutory compliance.
With the help of a registered filing agent such as J Accounting Pte Ltd, you should find it very easy from choosing your company name through the entire process of incorporation and even bank account opening.
Attractive tax rates
One of the benefits of incorporating a company in Singapore is the low taxation rates. Singapore is in the top ten in the list of the countries with the lowest tax rates all over the world according to reports prepared by credible institutions in the world. Singapore’s corporate tax rate is at approximately 17% for taxable profits that are S$300,000 and above.
Newly incorporated companies are given a tax exemption for the first $200,000 if a few laid down conditions are fulfilled. Also, capital gains are not taxed and the same applies to the dividends given to shareholders. Goods and Services Tax (GST) is also very low, at just 7% now.
To avoid double taxation
Singapore has a large network of double taxation avoidance agreements with other countries. These agreements ensure that companies do not suffer double taxation with Singapore and the other country that has signed the agreement. Most resident companies in Singapore do not suffer double tax.
Easy to set up
The company law in Singapore is very clear, thus making it so easy for foreigners as well as locals to set up a company there. It is suggested for the number of shareholders not exceeding 50, just anywhere between 1 and 50.
These shareholders can be local or non-local as in Singapore. Note that non-locals are allowed to hold and own all the shares of a company, i.e. 100% ownership.
After incorporating a company, shares can be transferred. This means that even if you had appointed local shareholders you can later transfer all their shares to non-local shareholders. Remember, shareholders can also be companies, i.e. corporate shareholders in the company.
Incorporating a Singapore company with a professional firm
You will need to engage the services of a professional firm such as J Accounting who provides business incorporation services to help you register your company. Note that in Singapore, as a non-local, you cannot be allowed to register a company on your own or as an entity without a SingPass account. A local or a permanent resident can however do this, since they have a SingPass or CorpPass. As the law requires a minimum of 1 local director in the company, J Accounting firm that you hire to register your company for you can provide you with nominee director services. This is to fulfil the statutory requirements in Singapore of having at least one local director in the company.
There is also no work visa required for you to incorporate your company if you will be running it from overseas. Not even when you want to go see to the company affairs in Singapore will you need to get a work visa. A regular visitor’s visa (if applicable) is all that you need to visit Singapore.
You can see the benefits of incorporating a company in Singapore, and how easy it is to run it. It does not matter whether you run the company from Singapore or overseas. These are just a few things that attract many people to Singapore, a business hub.
