Why Singapore is an ideal place to set-up a business?
Singapore is well known for its ease in setting up and maintaining a Company.
Singapore is one of the most open economies of the world.
Singapore is specifically geared to enable the free enterprise to flourish with a minimum of bureaucracy and restriction.
Singapore combines a simple low tax system and free-market principles. There are no ownership restrictions on citizenship. Foreigners can invest in almost any business and own up to 100% of their capital.
Singapore’s tax system is territorial. Corporate profits in Singapore are at two levels, with the first band charging 8.50% for the first two hundred thousand Singapore dollars profit and then 17% for anything two hundred thousand Singapore dollars, but foreign revenue is not taxable even if remitted to Singapore. There is no capital gains tax, withholding tax on dividends or interest and inheritance tax.
Singapore serves as a regional financial and business hub for the Asia Pacific region.
Singapore’s appeal is built on his political stability, the rule of law, the free flow of information and the use of English as a business language. It offers a strong pool of well-qualified local talent, while business immigration policies facilitate the recruitment of professionals from other countries.
Types of business structures are:
Limited Liability Partnership
Local Private Companies:
• Private Limited Company
• Exempt Private Limited Company
Local Public Companies
• Company Limited by Share
• Company Limited by Guarantee
(Singapore Branch Office)
(non-trading, for a market survey)
Private Limited Company
A private limited company is a limited liability company in which the shares are held by less than 50 persons and are not available to the general public. Most privately incorporated businesses in Singapore are registered as private limited companies. A private limited company’s name in Singapore usually ends with Private Limited or Pte Ltd. The shareholders of a private limited company can either be individuals or corporate entities or both.
A private limited company is the most advanced, flexible, and scalable type of business form in Singapore. It’s also the most preferred type of Singapore business entity for serious entrepreneurs
The theoretical minimum social capital is 1 SGD. The share capital may be denominated in SGD, EUR or other currency. Company information such as shareholders or directors are public data, accessible through the Singapore Company register (ACRA).
The nominal corporate tax rate is capped at 17% but the effective tax rate for profit up to 200,000 SGD is 8.5% For the first three years of operation, a tax exemption scheme is granted, the applicable corporate tax rate is 4.25% for profit up to 100,000
The Pte Ltd is managed by a director or a board of directors, of which at least one must be legally resident in Singapore. It is mandatory to appoint a qualified “Company Secretary”, the company secretary is responsible for the efficient administration of a company, particularly with regard to ensuring compliance with statutory and regulatory requirements and for ensuring that decisions of the board of directors are implemented.
The timing required for the Company constitution is quite short, in two working days we can incorporate a new entity.
Documents and information required
- Members and director ‘ identity documents
(passport for a physical person, business profile in case of legal person)
- Indication of Share capital, subscribed and paid up.
- Members and directors proof of address
- Proposed company name
- Registered office,
- Beneficial owners disclosure in case of a group of companies.