Singapore Is Better For Company Incorporation Allowing a Simple Two Step Registration Program
Ranked at #1 position for offering efficient ease in doing business, Singapore is an excellent destination for offshore business incorporation for those living abroad and for those planning to relocate to Singapore. The best thing is Singapore allows 100% foreign ownership, low tax rates, and an easy access to tap the immense potential of Asian markets.
Singapore is a small island country in the Southeast Asia region, attracting thousands of individuals and business organizations to incorporate company in Singapore. This garden city is like a bouquet of flowers offering definitive business options as flowers to the business explorers, so they can pick the best flower of opportunities. In this blog, we are about to consider the top five reasons behind the growing importance of choosing Singapore by entrepreneurs and companies for indulging in Singapore company registration.
1Ranked At 1stPosition for Ease of Doing Business
For the last few years, Singapore is consistently maintaining its top position in the World Banks Doing Business report, as the easiest country to do business. Going beyond the efficiency, World Bank from June 2013 to June 2014 measured 189 economies of the world documenting 230 business reforms with 145 reforms aiming to reduce the complexity and cost of complying with business regulations and 85 reforms aimed to strengthen legal institutions. Singapore continues to lead the rankings of the ease of doing business and for starting a business respectively.
2The Most Thriving Economy in the World
As per the 2015 Index of Economic Freedom, Singapore is the second most, freest economy in the world. During the 1960s to 1980s, Singapore was one of the newly industrialized countries overshadowed by the development of Hong Kong, Taiwan, and South Korea. The manufacturing industry, in particular, attracted a huge number of multinational companies and foreign direct investment during this period. Using this as a foundation stone for growth and development, Singapore emerged as one of the most advanced and technologically driven economies of the world. In 2003, Singapore with GDP growth rate of 14.471 became the fastest growing economy of the world after Qatar and Paraguay. As of now, Singapore Model is looked upon as an innovative and highly successful economic system where both the market and state has equally strong roles to play in the government.
3Citizen Friendly and Stable Political System
Even after 50 years of independence, Singapore enjoys an honestly reputed and politically stable government. Singapore is probably the only country in the world with forced independence. Reacting to its unexpected expulsion out of Malaysia in August 1965, Singapore realigned its strategies, policies and environment to ponder the nation with impeccable economic development. Singapore is not only known for achieving the highest standard of living in Southeast Asia, but also for emerging to become the hottest destination for incorporating businesses. The political system in Singapore plays a major role to achieve maximum growth and for the entire development of Singaporean society and economy. Along with New Zealand and Denmark, Singapore shares its equality for being the least corrupt country in the world. The legal system is transparent and efficient. There is no bureaucracy or red tape involved when you decide to set up a company in Singapore. Indeed, Singapore is the least bureaucratic country in the world.
4Best quality of life in Asia
Considering the Mercer’s Quality of Living Survey, Singapore although, is a costly city to live is the best choice for expatriates in terms of quality of life compared to other destinations in Southeast Asia. On the Global, scale Singapore is placed in the 26th position, but in Southeast Asia, Singapore rules the chart. Undoubtedly, Singapore is one of the most contemporary cities in Asia. The telecommunication system, public transport system, adoption of latest technologies, best quality medical facilities, safe and hygienic living environment, accessible location from other countries around the world, a superior educational system and a robust support system for government combine to give the best quality of life a country has to offer.
5Third largest in value of foreign direct investment
Singapore has adopted a proactive strategy of openness in the trade to induce economic development that will eventually result in attracting more amount of Foreign Direct Investment (FDI). The World Bank has already ranked Singapore as the world’s easiest country to do business. Supporting the fact, favorable lending to foreign investors, a simpler regulatory system, flexible tax incentives, a high-quality industrial real estate park, definitive political stability and equal to zero corruption rates makes Singapore an attractive destination for FDI.
Are You Interested In Singapore Company Formation
Although entrepreneurs have, a wide variety of options in locations to start a new company, Singapore for sure remains one of the most sought after destinations. Apart from the above-mentioned reasons, many other factors motivate global entrepreneurs to incorporate their businesses. The most flexible and convincing tax structure, state of the art business infrastructure, the world’s busiest ports and the best international airport citizen as well as highly educated, tech savvy and highly skilled workforce are some of those factors due to which Singapore company incorporation has gained momentum.
Whether foreign or local investors, those seeking every possible opportunity to set up company in Singapore, have three major options to choose the appropriate business structure
- Sole Proprietorship
- Limited Liability Partnership and
- Private Limited Company
As of now, a large number of entrepreneurs starting their businesses in Singapore prefer incorporating a private limited company. Accounting and Corporate Regulatory Authority of Singapore (ACRA) is regulatory and governing body looking into the matter of Company Incorporation. Thus, either to register a business name or to incorporate a company you will have to walk through the doors of ACRA and that too by following all the guidelines and regulations mandated by the Singapore Companies Act.
Singapore Company Registration
Already it’s been said that Singapore is the place offering paramount ease of doing business, therefore the process of setting up a company in Singapore can be accomplished in not more than two steps.
Step#1:
Registering the Business Name
While applying for the business name, there are a certain set of rules one has to follow. If the application form and required documents comply with the prescribed rules, getting a business name approved happens to be a one-day process. Ensure you follow these guidelines while registering your business name
- The suggested name should be unique, (should not be registered earlier or should not leave a scope for copyright claim)
- The proposed name should not violate any laws related to Trademark and IP Act.
- Prefer a decent name, in no way the outcome of the proposed name should be obscene or contain any vulgar pronunciation or meaning
Step#2:
Incorporating a Company
After approval and reservation of business name, it is time to move ahead with company incorporation. To register a company in Singapore, there are few things that every entrepreneur should take care of.
- Appoint at least one director who is above 18 years of age and an ordinary resident of Singapore
- Minimum one shareholder is necessary and depending on your business structure, you can either have maximum 20 or 50 shareholders.
- Least Paid-up capital required at the time of incorporation is S$1; however, you have the option to invest even more amount as per your business plan.
- Appoint a local Singapore resident company secretary within six months after incorporation having required experience and expertise to carry out the job responsibly.
- Make sure you have a registered Singapore business address either in the commercial or in the residential area. In no way a P.O. Box will be entertained as a valid address for company incorporation purposes.
Overall, the Singapore company registration is a totally hassle free process. If all your documents are in place and you have all necessary things at hand within hours or within one or two days your company will be incorporated. After successful registration of your company in Singapore, the company registrar will send you an email confirming the registration of your company caked as ‘Certificate of Incorporation’. The same email will have your company registration number.
