How to Start a Business in Singapore from New Zealand
In the World Bank Report 2020, New Zealand occupies 1st, and Singapore occupies 2nd position for the ‘Ease of Doing Business’ indicator. However, Singapore is an entrepot and serves East and West. Its geographical location and affordable tax rates give it an easy win—the business owners beeline to its shores for the company incorporation Singapore.
Singapore: Right Place to Start a Business
If you are serious about looking over the horizon for new opportunities and considering forming a business in Singapore, you must deal with questions like:
- Can I relocate to Singapore after opening my business?
- Is it mandatory to have a local director in Singapore?
- Can I be the local director?
- ACRA’s cost of setting up a company in Singapore?
Why Entrepreneurs Choose Singapore to Form a Business?
Nothing can bleed a business owner like corporate and personal income tax rates. In Singapore, the corporate tax rate ranges from 0%-17%, and personal income tax rate ranges from 0%-22%.
Most importantly, the process for company incorporation Singapore is purposefully kept simple. It is swift, free of red-tape and corruption. It takes only 1-3 days to form your Singapore company. The significant advantage is that Singapore allows foreigners to own 100% equity in their company.
Singapore is one of the easiest places to do business in. It is a secure society that offers world-class infrastructure, accessible transportation, reliable communication networks, and a high quality of life.
Do I Need to Relocate to Singapore to Run My Business?
No! You do not have to relocate and live in Singapore to run your business. You can indulge in company incorporation Singapore and run from your native country. However, you will need to visit Singapore to open your corporate bank account. You may need to take your shareholders, director, and a company secretary with you for the purpose.
Can I Relocate to Singapore?
Yes! Acquiring an Entrepreneur Pass from the Ministry of Manpower will enable you to relocate and work in Singapore. You could be the local director of your company and pay yourself the appropriate salary. You could also relocate your family under Dependant Pass.
How Can I Start a My Company from New Zealand?
You need to fulfil pre-incorporation criteria:
- At least one shareholder
- At least one local director
- At least one company secretary
- Minimum initial paid-up capital of S$1
- Registered office address
For company incorporation Singapore, you need to arrange at least one local or resident director who is an ordinarily resident of Singapore. You can appoint a business associate, partner, friend, or relative. You also need a local address for your company office. Well, the post box office does not work for the purpose.
You can hire a registered office address, company secretary, or nominee director services from a reliable corporate services firm. Your nominee director will have no decision-making authority.
ACRA’s Company Incorporation Fees
To register your company, you will first need to apply and get your company name approved from ACRA. The fee is S$15. With an approved name you can apply to ACRA to register your company. The fee is S$300.
SBS Consulting Pte Ltd has affordable packages for your company incorporation Singapore which starts from S$699. Our company secretary service starts from S$299*/Year and registered office address service starts from S$239*/Year. However, these services are included FREE for the first year in our promotional incorporation package for you.
Before starting business activities, you should get business licenses and permits that you need. It will be an added but necessary expenses for you. If you are well acquainted with your business processes, then you should start operating without hiring any employee. It will keep your initial costs of running your business down. Depending on your growth, you can think of hiring employees later on.
What Singapore Taxes Will I Need to Pay?
Singapore is one of the jurisdictions that have lower corporate and personal income tax rates.
Singaporean authorities have made it simple for you to grow your new company. They offer tax exemptions for startups. Your startup can benefit from these for the first three years.
You can claim a 75% tax exemption on your first S$100,000 taxable income. Next, S$200,000 gets 50% tax exemption. You pay 17% of the flat tax rate on income above S$300,000.
Existing companies get partial tax exemption. They can claim 75% of tax exemption on their first $10,000 of chargeable income. Next, $190,000 of chargeable income gets 50% exemption.
After your turnover crosses S$1million mark, you will need to collect 7% of GST from your customers and submit it to IRAS.
Singapore personal income tax is a progressive tax and ranges from 0%-22%. Singapore does not charge any tax on capital gains. It means the dividend you received from your company will be tax-free. There is also no inheritance tax in Singapore.
New Zealand and Singapore have signed double taxation avoidance treaties. It means you won’t be taxed twice on the same income.
SBS Consulting Pte Ltd is a registered filing agent in Singapore. We can offer expert assistance for your company incorporation in Singapore if you have any queries contact us on +65-6536 0036 or mail us at firstname.lastname@example.org for the answers.