Singapore Company Incorporation: How it Works?
Today, investors and entrepreneurs compare the opportunities that are open to them in their native as well as distant places. For the last two decades, Singapore has played the role of the most favoured business destination in South East Asia. This period has seen a consistent rise in the number of Singapore business incorporation.
Singapore Offers an Effective Business Environment
Indeed, Singapore is a great place to spread your business roots. The country ranks 2nd in the Ease of Doing Business indicator. Foreigners beeline for the Singapore company incorporation. It means they bring in a lot of foreign investment in Singapore.
Small and Medium Enterprises (SMEs) and the MNCs get attracted to Singapore because of its business-friendly environment. Its low tax rates, political stability, corruption-free bureaucracy, infrastructural readiness conducive to the business activities and its closeness to emerging markets of Asia.
Singapore also attracts self-employed consultants that offer their services to their clients from all over the globe. These professionals benefit from establishing an offshore company in Singapore. They like the:
- Ease in the incorporation of a company in Singapore
- Straightforward compliance requirements
- Dependable transportation infrastructure
- Dependable legal system
- Access to reliable financial institutions
All these factors put together to highlight Singapore’s availability as a great business destination.
Singapore Company Incorporation
It is easy for a setup company in Singapore. Normally, it takes only 1-3 days. However, if your application gets referred to the higher authorities, the approval may take up to 2 months. Such applications are usually approved by the concerned ministries.
The entrepreneurs need to complete only two procedures to open a company in Singapore. They have to apply to ACRA, the Company Registrar, for company name approval and for registering a Singapore company.
The citizens and the permanent residents can initiate the process for Singapore company incorporation on their own. However, foreign individuals and corporations need to appoint an experienced provider of Singapore incorporation services. The reason being that the company incorporation process is online and needs SingPass ID, which the foreigners do not have.
Singapore Incorporation Services: A Bridge Between ACRA and Entrepreneurs
The incorporation services providers use their Professional Number to log on the BizFile+ portal and initiate the registration process on behalf of their clients with ACRA. They also assign a company incorporation expert to you to help you out if you stumble during the Singapore business incorporation process.
The professionals working for these services also advise their clients on the types of businesses they can incorporate in Singapore. They also help in identifying the ones that are most useful for the clients’ business activities.
Types of Singapore Companies
- Private Limited Company (Pte. Ltd.)
- Limited Liability Partnership (LLP)
- Sole Proprietorship
All in all, Private Limited Company is the most trusted business structure in Singapore. The majority of registered businesses are of this type. However, the entrepreneurs also have the option of registering business firms like Sole Proprietorship or Limited Liability Partnership.
Private Limited Company
A private limited company, as its name suggests, limits the liability of its shareholders to their investment in its shares. Whereas, the liability is unlimited for the sole proprietors and partners in LLPs.
- Pte. Ltd. has 1-50 shareholders. At least one of the director Is ordinarily resident of Singapore.
- Anyone over the age of 18 can form a company in Singapore.
- The company has a separate legal identity.
- It is a legal person.
- It can buy or sell property in its name.
- It can sue or be sued in its own name.
- It has perpetual existence.
- Singapore allows 100% foreign ownership.
- Transfer of ownership is easy.
A private limited company is more credible in the eyes of investors, banking institutions, suppliers, & clients. It can easily raise loans for its expansion.
Registering a Singapore private limited company gives you a huge advantage. It can claim all the tax benefits and exemptions, provided it has a maximum of 20 shareholders.
The private limited company pays corporate income tax on its taxable income which ranges from 0%-17 %. The effective tax paid by the Singapore local companies comes to about 8%-9%.
On the other hand, Sole Proprietors and the partners in the LLPs need to pay personal income tax which ranges from 0%-20%.
Appoint an experienced provider of Singapore incorporation services. It will cost you, but it will make your task hassle-free.
- The experts working in these firms are well-versed.
- They deftly handle situations like the rejection of your company name due to infringement of trademarks, use of certain terms, Etc.
- They are swift in advising on taking containing action.
- They also assist you in appealing against the rejection of your application to register a Singapore business.
After the successful incorporation of a company in Singapore, they also assist their clients in the opening of the corporate bank account, in acquiring Company Seals and stamps, business licenses and permits, if business’ activities need them.
SBS Consulting Pte Ltd is a registered filing agent in Singapore. If you are looking for hassle-free Singapore company incorporation, contact us on +65-6536 0036 or mail your query at firstname.lastname@example.org.