Important Facts about Setting a New Singapore Company
The world economy is trying to get itself out of the economic crisis because of the declining Chinese economy. The market is no doubt is sluggish. If you have opted to start a new business, there is no better place than the Singapore. Its economy has defended itself successfully and the Q2 2015 results have actually shown growth. It is the right time to incorporate a company in Singapore.
Singapore Business Incorporation
One of the major concern of any new business is the availability of favorable business environment. It increases the chances of survival of a startup. Singapore is listed at the top for ease of doing business indicator. It is a business destination that is most conducive for the access to the emerging markets in Asia.
The Singapore authorities have taken steps to remove the obstacles in the paths of the startup entrepreneurs. It has simplified its company incorporation process to the level where the applicants have to complete only 2 procedures. They do not have to wait for weeks and in certain cases, for months to register their business. They can open a company in Singapore within 1 – 3 days.
Requirements for a Singapore Business Incorporation
Every Singapore company must abide by the Singapore Companies Act. Accounting and Corporate Regulatory Authority (ACRA) is the agency that you must apply to, in order to register your business as it also acts as the Company Registrar of Singapore.
If you are going to set up a company in Singapore, you should be aware of the requirements for a successful Singapore company setup. In brief, it needs a minimum of 1 Shareholder + 1 Director + 1 Company Secretary + 1S$ initial minimum paid-up capital + local registered address.
Director: According to the Company Act, the director of the proposed company must be a Singapore citizen or the permanent resident. The individual must be above 18 years of age and cannot be a bankrupt.
Shareholders: A Singapore private limited company can have as many as 50 shareholders. They can be individuals or the corporate. Singapore allows 100% foreign shareholding.
Initial Minimum Paid-up Capital: The amount of initial minimum paid-up capital to register a Singapore company is S$1. However, for an Entrepass holder it is S$50,000.
Company Secretary: A new Singapore must appoint a Company Secretary within the 6 months of its date of incorporation. The appointee must be qualified and experienced professional well-versed with the procedures and practices of his profession.
Auditor: The ACRA insists that each new company must hire an auditor within the 3 months from the date of its incorporation.
Registered Local Adress: A company must provide a local registered address for its office in Singapore. It cannot be a Post Box Number. If an entrepreneur is going to use his HDB flat as the office of the proposed company, permission from the proper authorities is required.
Singapore Incorporation Services
If you are an expatriate opting for a Singapore company formation, then follow ACRA’s advice and hire SBS Consulting, one of the Singapore incorporation services. The company registration process is online and needs SingPass ID.
The Company incorporation services use the Professional Number assigned to them for to log-in on the website provided and to submit your application. The professionals employed by these professional services also provide advice in obtaining licenses and permits, if required. They also assist in opening a corporate bank account and in acquiring company seals and stamps.
During the last 2 decades, Singapore has proved itself to be the leading Asian country to start a new business in. Small and Medium Enterprises (SMEs) and conglomerates that are looking for softer taxation rates have flocked to this island nation. Singapore corporate income tax rates lie between 0% – 17%.
The lower tax rates are one of the major attractions for the foreign businesses and a decisive factor in increasing the number of Singapore business incorporation in Q3 of 2015. There is an increase of 10.3%. It has seen more than 17,000 incorporations and 35% of which have foreign backers. It also offers first-class infrastructure, social security, top-grade educational institutes, and a corruption less society.