Navigate Borders, Solutions for Global Prosperity
SINGAPORE
Singapore company set-up, basic knowledge
We help you to answer these simple questions:
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What about Singapore and how is it useful for Viet-trepreneurs?
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What types of Viet-trepreneurs are suitable for setting up a SingCo to start their overseas businesses? Which industries are most suitable? What is the common use of a SingCo to support Viet-trepreneurs in kicking off their global expansion plan?
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What basic knowledge and requirements are needed to set up a Singapore company?
Singapore Company Set-up
Singapore offers an ideal environment for companies seeking opportunities in Asia, with a strong regulatory framework, stable political and economic conditions, and a pro-business government. It serves as a major hub for commerce, finance, and wealth management, known for its government efficiency and transparency. Singapore consistently ranks as the world's easiest place to do business according to the World Bank. Additionally, it boasts a highly educated workforce proficient in English and various Asian languages.
With a corporate tax rate of just 17% and a range of other tax incentives, Singapore is a top destination in Asia for business growth. Certain conditions allow for minimized or exempted corporate tax on foreign dividends, branch profits, and service income brought into Singapore. Singapore boasts over 80 double tax treaties, providing residents with reduced withholding tax rates on cross-border profits. The absence of capital gains tax and non-resident dividend withholding tax makes Singapore an excellent location for holding companies involved in cross-border investments.JMTPP offers support for establishing and managing businesses in Singapore.
Recommended Uses of Singapore Companies:
1. ACTIVE TRADING BUSINESS: Singapore is highly efficient for companies engaged in international trading. Its territorial and remittance-based taxation system means that business income is typically not subject to Singapore Income Tax if it is earned and not remitted to Singapore.
2. SERVICE COMPANY: Singapore is increasingly favored by service companies, but caution is advised when services are rendered outside Singapore. The Inland Revenue Authority of Singapore (IRAS) considers income from services as Singapore-sourced unless provided through a permanent establishment (PE) outside Singapore.
3. HOLDING COMPANY: Capital gains and dividend income from other Singapore companies are tax-exempt. Foreign-sourced dividends remitted to Singapore can also be exempted from tax, provided the country of origin has a tax rate of 15% or higher, and the dividend has been subject to taxation or withholding tax.
Here are compelling reasons to establish your business in Singapore:
1. Optimal Business Environment: Singapore consistently ranks as the top country globally for economic opportunity and the best business environment in Asia, as projected by the Economist Intelligence Unit for the next five years.
2. Strategic Connectivity in Asia: Singapore's extensive connectivity and deep business ties with Southeast Asia, a region poised to become the fourth-largest economy by 2030, offer significant growth opportunities.
3. Political and Economic Stability: Singapore excels in political stability and innovation, consistently ranking as one of the top innovative economies globally for the past 14 years.
4. High Quality of Life: Singapore is renowned for its exceptional quality of life, making it a preferred destination for overseas workers from East Asia due to excellent international schooling, infrastructure, and housing.
What are the requirements to register a company in Singapore?
To begin operating a business in Singapore, you must first select your preferred business structure and then register your company with the Accounting and Corporate Regulatory Authority (ACRA), the national regulator for business entities in Singapore. Additionally, setting up a corporate bank account is essential.
Here's a checklist of the key requirements:
1. Company Name Approval: Ensure your proposed company name is approved by ACRA.
2. Directors: You need at least one director, who must be an individual aged 18 or above without disqualifications.
3. Resident Director: At least one director must be a Singapore citizen, Permanent Resident, or hold an EntrePass visa.
4. Shareholders: You can have between 1 to 50 shareholders, who can be individuals or legal entities.
5. Paid-Up Capital: The minimum paid-up capital is S$1, which can be increased after registration.
6. Registered Address: The company must have a physical address in Singapore, not a P.O. Box.
7. Company Secretary: Appoint a company secretary to assist with compliance and documentation.
8. Auditor: Most companies qualify for audit exemption unless they meet specific criteria related to annual revenue, assets, or employee numbers. An auditor must be appointed within three months of registration if not exempted.These steps ensure your company meets all legal and regulatory requirements to operate in Singapore.
These steps ensure your company meets all legal and regulatory requirements to operate in Singapore.
At JMTPP, We offer support with the following:
- Choosing the appropriate entity type tailored to your requirements
- Structuring your entity in full compliance with local regulations
- Ensuring adherence to all incorporation-related regulations and deadlines
- Preparing and submitting all required documentation accurately- Registering your business with the relevant authorities
