Open a Company in Singapore: Set Your Own Business
The slowdown in the Chinese economy has somewhat put breaks on the recovery of the global economy from the slump of 2008. However, the Singapore economy has stood tall and has delivered. It is still among the top invest destinations and is attracting entrepreneurs to incorporate a company in Singapore.
At the end of 2015, in the month of November, entrepreneurs went for more than 21,000 new Singapore company setups. As many as 30% of them were floated by foreign entities. Simple incorporation process, lower tax rates, start-up ecosystem, infrastructure and reliable communication links that the Singapore provides to these entities is still playing its magic.
Opportunities for Singapore Small and Medium Enterprises (SMEs)
It is speculated that, in 2016, the number of Singapore business incorporation will keep on rising. These companies, along with the existing ones, are going to benefit from the set up of ASEAN Economic Community
(AEC) in 2015. It has changed the rules for Small and Medium Enterprises (SMEs) looking to expand their activities out of Singapore. AEC is aimed at making the easier and cheaper. In fact, the business can utilize the region as a vast platform as a production base.
Singapore government is wholeheartedly encouraging its SME sector to expand and do business overseas. The formation of ACE is a boost to the businesses that are already benefiting from its Double Tax Deduction for Internationalization and the Market Readiness Assistance schemes.
Singapore Company Registration Process is Fast and Cost-effective
The initial paid-up capital that one requires for the incorporation of a company in Singapore is only S$1. It requires a minimum of one local resident director and a shareholder. ACRA (Accounting and Company Regulation Authority), the Company Registrar of Singapore is the agency that one has to deal with.
Singapore Company Registration:
The first step in the task is of registering the name of the proposed company with the agency. It gives you breathing space of 60 days fill all the necessary forms and put together the incorporation documents. The foreigners are better off if they implement the advice given out by the ACRA and appoint one of the efficient Singapore incorporation services to do the task.
Next step is to gather all the required documents and apply to ACRA. The process is online. ACRA has a web portal, BizFin, dedicated for the purpose. It takes 1 – 3 days to incorporate a company in Singapore. However, in some cases, if it is referred to the Ministers, it may take as much as 2 months.
Applicants need SingPass ID to log-in on the BizFin and that is why foreign individual entrepreneurs and corporate needs to take hire Singapore incorporation services.
Singapore taxation is a territorial-based one. The profits earned Singapore is taxed with the corporate income tax. The prevailing corporate or company tax is in the range of 0% – 17% and the personal income tax ranges from 0% – 20%. Singapore tax resident companies also benefit from the tax benefits, exemptions and incentive schemes offered by the authorities. These brings effective tax paid by them to 8% – 9.5%. In tax related issues, taking advice from an experienced Certified Professional Accountant (CPA) or a Singapore accounting service can prove useful.
Moreover, Singapore does not apply capital gain tax which makes the dividends distributed by the companies to their shareholder tax-free. And there is no Wealth or Inheritance tax.
Benefits of Geographical Location:
Singapore’s closeness to one of the busiest sea trade link between the East and the West is of great importance. The link carries $5 trillion worth of goods. It has earned Singapore the reputation of one of the most important entrepot.
Infrastructure in Singapore:
Singapore’s modern seaports and communication links play a vital role in its vast foreign trade. In addition, Changi Airport is one of the best and busy airports in the world. It offers easy flights to the emerging markets of Asia. Singapore has installed one of the most efficient communication networks and ranks 1st for it.
The faster telecommunications network, state-of-the-art technology, transportation hubs and sophisticated public transportation system are Singapore’s few unique selling points for the investors when it comes to Singapore company registration.