The ease of starting a business in Singapore is not as difficult as many people would assume. Singapore has been described as one of Asia’s best business destinations. It has low company tax, political stability, unpolluted environment and well-established system of government. Nothing appears out of place. It is not as hard as it can be, provided you follow the steps.
Any registration of the company is done under the Accounting and Corporate Regulatory Authority, also referred to as ACRA. Outsourced company secretary Singapore This is the government agency, which deals with business registration. Applications are submitted online through BizFile+. Approval usually takes one day (in most instances). Yes, just one day. The speed of the process pleasantly surprises many new business owners.
Before registration, you must choose your business structure. A majority of the foreign business owners choose a Private Limited Company (Pte Ltd). Its key advantage is limited liability, which protects your personal assets. It also appears more professional and is appealing to the investors. Sole proprietorship is simpler to establish but more risky to an individual. Other alternatives are partnerships, which are also characterized by shared responsibility. Your decision would impact taxes, risk and plans of the future and think over it.
Next, you need to choose a company name. This is one thing that may seem easy however. ACRA will not accept duplicated and too close to famous brand names or unfit names. It is wise to prepare backup names in case your first choice is rejected.
You also have basic requirements to be satisfied. At least one of them must be a local director based in Singapore. In case you are a foreigner that is not a resident, then a nominee director service can be utilized. You must appoint a company secretary within six months of registration. A registered local address is also required. A P.O. box cannot be used.
The share capital needed to be minimum is SGD 1. Even though this meets legal requirements, some firms choose a higher capital to impress investors or collaborators.
Singapore’s tax system is competitive. Corporate taxes are managed by the Inland Revenue Authority of Singapore (IRAS). New companies can benefit from partial tax exemptions during their first three years. This may serve to cut your expenses at an early business phase. It is always good to plan in advance regarding taxes than to find yourself at the end of the day.
Once the registration is done, a step to open a corporate bank account follows. This step can take longer. Banks will require documents, business plans and information regarding shareholders. Singapore is always strict on money laundering and therefore be ready and wait.
Prices are normally affordable, however, do remember to include additional services like nominee directors, secretaries of the company, filing of documents, and rental of the office.
The country appeals to entrepreneurs thanks to its reliable legal system, prime location, and reputation. Investors have confidence in the system. However, your company must show real business operations. The government demands actual activity, not merely a paper company.
In case of doubt, talking to a corporate service provider should help. With proper preparation, setting up a company in Singapore can be easy and stress-free.