Singapore Private Limited Company is the Most Preferred Form of Registration for Foreign Entrepreneurs: SBS Consulting
A vast majority of foreign entrepreneurs and investors willing to setup a Singapore company prefer to register their business as a private limited company, says Singapore’s incorporation specialist, SBS Consulting.
Many foreign entrepreneurs and corporates opting for Singapore company registration prefer to for their business as a private limited company, said SBS Consulting Pte Ltd, a premier Singapore company incorporation specialist.
Singapore is one of the best business hubs in Asia. The World Bank Report 2020 places it at 2nd position for the ‘Ease of Doing Business indicator. The economic prosperity of the ‘Island Nation’ has attracted a multitude of global business entities for starting a company in Singapore. The country boasts of the presence of more than 17,000 foreign SMEs and multi-national companies.
“SBS Consulting Pte Ltd is one of the reputed registered filing agents in Singapore. Since 2010, the firm is assisting individuals and companies in setting up their businesses in Singapore. Its company incorporation packages start at S$699 only. The promotional package provides FREE services like registered office address and company secretary Singapore for the first year. Both these services are essential for starting a new company,” informed Ms. Meena, the business head.
An entrepreneur, both local and foreign, can register a private limited company, sole proprietorship, or limited liability partnership in Singapore. Most business owners choose to register a private limited liability company or private limited company.
The private limited company is a dynamic business structure. It also scales well when the business grows. It is chosen for its ability to minimise the liability of its shareholders to the amount they have invested in its shares. Their personal assets are left alone and are not used to pay the debts or losses of the company.
“The reason why foreign nationals choose the option of a private limited company for business incorporation Singapore is due to the range of advantages it has over other types of Singapore companies. From the shareholding pattern to the tax incentives, this form of a company provides an ideal platform for a foreign entrepreneur to prosper in the nation,” said Ms. Meena.
The applicant who wants to set up a company in Singapore needs to apply to the ACRA (Accounting and Corporate Regulatory Authority), the Company Registrar of Singapore. Singapore private limited company registration is a refined and simple process. The government has kept it minimal- the foreigners visiting Singapore for the purpose benefit from it.
“Singapore company registration process consists of only 2 steps: ACRA’s approval for company name and registering a company with ACRA. As the registered filing agent, we can transact with ACRA and pay ACRA’s official fees and submit our client’s documents with it.
After a client hires us, our experts visit the ACRA’s portal and initiate the process. Firstly, we start with the list of company names supplied by the client. Check the availability of these names on this website and register the one for our client’s use by paying a fee of S$15.
In the second step, our experts apply to ACRA for registering the client’s company. We pay the official fees of S$300. It takes ACRA 1-3 days to process the application, ” advised Ms. Meena.
In order to form a Singapore private limited company, the applicant must provide at least one shareholder, one local director, one company secretary, a minimum of S$1 in the initial paid-up capital and a registered office address.
“The foreigners need a work pass or visa like employment pass to relocate and work in Singapore. We, at SBS Consulting, acting as their company secretary, can apply to the Ministry of Manpower for their pass. After acquiring the pass, they can relocate to Singapore and take charge of their company. A company having its management in Singapore is considered a local company.
On the other hand, if they choose to operate their company from their native country, they can do so. In this case, they do not need any work pass. However, their company will not be considered a local company. It cannot claim the tax benefits, exemptions, and rebates offered by the authorities,” added Ms. Meena.
A local private limited company is taxed as a Singapore resident. It can claim tax exemptions under Startup Tax Exemption Scheme. Under this scheme, for the first 3 years, it can claim 75% of tax exemption on its first $100,000 chargeable revenue. Next, $200,000 gets 50% of tax exemption. This tax exemption is open to all newly registered companies in Singapore except the following two types:
- A company whose principal activity is that of investment holding
- A company that undertakes property development for sale, investment, or for both
From YA 2020 onwards, a Singapore company can also claim Partial Tax Exemption for Companies (PTE). Under this scheme, it can claim,
- 75% tax exemption on the first $10,000 of its normal chargeable income; and
- 50% tax exemption on the next $190,000 of its normal chargeable income
A Singapore private limited company has a better image or credibility than other types of businesses. It helps these companies in raising capital for their growth or expansion. On the other hand, these companies also need to submit to strict statutory compliance.
Foreign corporates, especially Small and Medium Enterprises, prefer to register a Singapore subsidiary company. As a private limited company, it is also a separate legal entity. Singapore allows foreigners 100% stock holdings in companies. It means the foreign corporation can own 100% shares of its subsidiary company or its majority shareholder. Its liability is limited to its share capital in Subsidiary’s shares.
“With the right assistance, it is easy to accomplish a private limited company registration. It takes only 1-3 days. If you are working with a shoe-string of a budget, you will find our promotional incorporation package highly affordable. With its FREE services for the first year, it can save you as much as S$538,” concluded Ms. Meena
About SBS Consulting Pte Ltd:
SBS Consulting Pte Ltd is one of the experienced Singapore company registration experts. It offers one-stop company incorporation services to foreign and local entrepreneurs. As a corporate services provider, it also provides services like company secretary, bookkeeping, accounting, taxation, GST and XBRL filing, and payroll.