The Republic of Singapore is an urbanized island-state located at the foot of Malaysia, one of the «East Asian tigers». In 1963, gained independence from the British Empire, and in 1965 from the Malaysian Federation.
Today, Singapore is one of the world's financial centers, whose banks are not inferior in reliability and privacy to the Swiss. Singapore is considered a «paradise without taxes», where dozens of companies register in a day. Registering a company in Singapore is prestigious, secure and convenient. And the principle of territorial taxation, if properly used, turns Singapore into a mid shore jurisdiction.
A peculiar proof of the «Singaporean miracle» is the fact that the area of the state is gradually increasing under the program of reclamation of the territory, and the necessary soil is acquired from other states. Singapore is also eloquently described in an article by the American writer William Gibson in Weird magazine in September-October 1993. The article produced an instant and long-lasting resonance, and Singapore received the famous specific label.
CURRENCY, BUSINESS AND INVESTMENT ENVIRONMENT
Rated by the World Bank for 2017, Singapore ranks 2nd in terms of ease of doing business. 3rd place in the global competitiveness index (2018), 9th place in the human development index (2018). Singapore has a very favorable investment climate, a high level of economic freedom, an educated and disciplined population. All this, combined with low taxes, creates attractive conditions for foreign investors and businessmen.
The country also has a highly developed telecommunications system, a network of roads and railways connects Singapore with Malaysia. The small size of the city-state, the absence of vast territories and the lack of natural resources have determined the evolutionary paths of Singapore. The current government is focused on the development of the education system, infrastructure and attracting foreign investment. Therefore, Singapore is becoming more interesting if your business is focused on the Asian market.
It should be noted that the port of Singapore maintained world leadership in terms of cargo turnover until 2005, and 6 free trade zones are located in the port. The country has more than 100 different banks. Currency control is absent. English as an official language greatly simplifies business and record keeping.
WHAT YOU NEED TO REGISTER A COMPANY IN SINGAPORE?
Before you begin the direct registration process, you need to choose a name for the company. It must meet local legal requirements and differ from the names of existing companies. Also, the name should indicate the legal form.
Main organizational and legal forms of companies in Singapore:
- LP (Limited Partnership);
- LLP (Limited Liability Partnership);
- PLC (Private Limited Company);
- EPC (Exempt Private Company);
- LTD (Public Company Limited by Shares).
COMPANY REGISTRATION IN SINGAPORE
When a name is selected, the company’s registration in Singapore is made in the ACRA (Accounting and Corporate Regulatory Authority) company registry. The following documents are needed for this:
- Memorandum or agreement between the founders. It contains general information about the company and the persons who sign this documents;
- Official statement of compliance with Singapore law requirements;
- Full information about directors, shareholders, secretaries, etc. Mandatory submission of copies of documents that certify identity;
- A certificate confirming the legal address;
- The company must have its own office in Singapore, so you must submit the address of the registered office;
- And etc.
You can always check the complete list of required documents by ordering advice on business registration in Singapore from YB Case experts.
After registering the company in Singapore, the applicant receives a Certificate of Registration and a registration number. It should also be noted that it is possible, register a company in Singapore remotely or connect VisaNet to a corporate account with a Singapore bank.
FEATURES OF TAXATION
Rated by the World Bank for 2017, Singapore ranks 7th in terms of the simplicity of the tax system. As already noted, the island has a territorial tax system – income is taxed, which is obtained from a source in the territory of the state. The corporate tax rate depends on the size of the annual profit (including dividends, interest, royalties): up to 300 thousand SGD – 8.5%, more than 300 thousand SGD – 17%. Startups for the first 3 years of activity, for the first 100 thousand SGD per year are subject to corporate tax at a rate of 0%. There are tax breaks for expenses such as paying for rent, purchasing real estate for a company, paying accounting fees, salary workers, etc.
VAT in the usual sense is absent in Singapore, but there is a similar tax on the import of goods and services (Goods and Services Tax) at a rate of 7%, which is imposed on the final buyer. Export, international services, sale or rental of real estate – are not taxed. Registration of the company as a VAT payer occurs without fail, when the turnover of the business in the last 12 months is more than 1 million SGD.
Income tax for individuals is - from 0% to 20%, depending on the amount of income. At the same time, the law on this tax contains explanations in which specific cases income can be recognized as received in Singapore. Real estate tax - 10%, is charged to property owners when they rent out the last one. Excise taxes are levied on transport, tobacco, alcohol and petroleum products. There is no capital gains tax. Singapore has signed a double tax treaty with many countries.
HOW TO REGISTER A COMPANY IN SINGAPORE
The registration of the company with all the preparations and preparation of all necessary documents, takes 2 weeks. YB Case specialists will assist you in registering a company in Singapore. And also our professional staff will provide advice on opening a corporate account with a Singapore bank remotely.