In this short review, we'll be focusing on the procedure for registering a company in Singapore. Please note that establishing a Singaporean company requires having an in-depth knowledge of the local legislation and meeting a number of criteria.
One of the most popular legal forms is a PLLC. What makes a PLLC really popular with entrepreneurs is that the liability of its founders is limited to the amount of invested capital. Another advantage of establishing a PLLC is that its debts will not affect its founders' property. Due to a taxpayer-friendly tax regime, registering a PLLC in Singapore is also a profitable undertaking. According to the Singapore Companies Act, any individual aged over 18 can register a company in Singapore.
Registering a company in Singapore requires:
- Having a unique name. Before embarking on the registration process, one must apply to a competent authority for permission to use a particular name.
- Having a director. Starting a company in Singapore requires having at least one director who must be a Singaporean resident. To qualify for one, they must have a Singaporean citizenship, as well as a residence permit or a permanent residence permit.
- Having founders. There must be no less than one and no more than fifty founders. Founders can be both local and foreign individual/legal entities; 100% foreign ownership is allowed.
- Having a corporate secretary. According to the Singapore Companies Act, a corporate secretary must be appointed within six months from the date of registration. To qualify for one, they must reside in Singapore. Appointing a company's director or founder as a corporate secretary is forbidden.
- Having paid capital. The minimum amount of paid capital is to be no less than 1 SGD (0,72 USD; 0,67 Euro). Capital may be in the form of various types of shares. There is a possibility of increasing a capital at any time after the incorporation of the company in Singapore.
- Having a registration address. Registering a company requires having a permanent registration place. As a rule, it should be a commercial address; however, a company may sometimes be registered at the place of residence of its sole owner.
Taxation
Singapore has a number of tax incentives, such as no tax on dividends and capital. A Singaporean company is exempted from a corporate tax if it conducts business outside this jurisdiction. If not, it is required to pay a corporate tax at the rate of 17%.
Foreign investors cannot register a company in Singapore on their own. Non-residents can enlist services of registration agents or have one of their directors with a Singaporean citizenship apply for registration.
YB Case specialists are familiar with all intricacies of this issue, and will help you to set up a company in Singapore.
Normally, registering a company takes approximately 2 weeks and includes the following steps:
- Reservation of a company name. An application for reserving a corporate name is filed with a registration authority. A name must differ from the names of registered companies. It should not infringe on trademark rights, nor be obscene or offensive. Normally, a name is reserved for a period of 60 days.
- Filing a registration application. An applicant must fill out a special form, signs all necessary documents and submit them to a registration agent who will then submit their application to a relevantly authorized authority.
- Review of a registration application by a competent authority.
- Obtaining a certificate of incorporation. An applicant receives a certificate, confirming incorporation and containing a registration number. A certificate is issued in an electronic form.
Opening a bank account in Singapore
There are a lot of banks in Singapore where entrepreneurs can open a corporate account. Some of them do not even require them to be physically present to do that. Please keep in mind that that it is possible to connect VisaNet to a Singaporean bank account.
YB Case specialists assist clients in opening a corporate bank account in Singapore.
Obtaining licenses in Singapore
Some business activities in Singapore require getting a license. For example, a license is required for providing financial services, running a travel agency or importing/exporting goods.
Registering a Singaporean company with a tax authority
Having an annual turnover of 1 million SGD requires being registered as a VAT payer. VAT in Singapore is currently 7%.
Want to open a commercial enterprise in Singapore? Looking to buy an existing company in Singapore? We can assist you with that and a lot more by providing you with comprehensive advice.
