Starting a company is a difficult challenge. Any decision made by an entrepreneur has the potential to have a significant effect on the company’s future. The first step in building a successful business is the company registration Singapore process. As a result, it’s critical to comprehend the registration process and options available to you.
Most foreign companies want to relocate and incorporate their company in Singapore because this country offers many advantages to business entities. It has been one of the most successful economies all over the world for as long as one can remember. Its economy has proven to be resilient to many economic crises that is why a handful more businesses are interested to expand here.
Aside from that, it was named the most business-friendly country in 2020. In the same year, Singapore was declared as the third most corrupt-free country making it an even more attractive location for businesses. If you wanna know how to incorporate company in Singapore here are things that you have to remember.
Requirements for eligibility
To begin, the cost of establishing your business will vary depending on your citizenship and the business structure you choose. To incorporate company in Singapore, you must be at least 18 years old if you are a Singaporean citizen or permanent resident. In order to obtain a work permit, there are no additional conditions.
To start the company registration Singapore process as a foreigner, you’ll need an entrepreneurship pass (or EntrePass). In Singapore, service providers charge an average of S$4,500 for an EntrePass application and around S$850 for an Employment Pass application.
Choosing a business model
Sole proprietorship, partnership, limited partnership, limited liability partnership, and company are the five different corporate structures available in Singapore. We advise you to think carefully about your business structure because it can have a significant effect on registration costs, taxes, risk, and liabilities.
Singaporean agencies would also require you to determine what kind of business model your company would have. Being decided on this matter would also help you create smart decisions along the way.
Costs of registration
Depending on the company’s business structure, the cost of registering the business varies from S$115 to S$135 in Singapore. The majority of structures only require an ACRA registration fee, but a business arrangement would require an additional S$700 to S$2,000 for company secretarial services.
Within six months of the company registration Singapore process, new companies must name a company clerk. This usually costs between S$700 and S$2,000 and includes the ACRA incorporation fee as well as approximately one year of company secretarial services. Other benefits usually included with these programs include a business memorandum, articles of incorporation, share certificates. They also provide ACRA e-notice of incorporation, minutes from the first board meeting, and assistance in opening a corporate bank account. We recommend that companies carefully consider each secretary’s benefits in order to choose the package that best suits their needs.
The overall costs for foreigners will vary depending on whether they choose to incorporate company in Singapore or from abroad. If you want to work from another country, for example, you’ll need to name a local nominee director to incorporate company in Singapore. If you decide to move, however, you will need to apply for an EntrePass. However, the cost of the company registration Singapore process is the same for both immigrants and residents.
Imposition of taxes
Tax is simply the money people are paying to the government. Most countries are relying on different kinds of taxes imposing on their people and businesses. The amount of tax you pay directly is determined by the nature of your company. All other company structures are taxed as individuals under the personal income tax laws, while companies are taxed as corporations under the corporate tax. This assumes that in a partnership structure, each partner’s profits will be taxed separately.
Corporate tax rates are often lower than personal income tax rates, which is an advantage of running a business in Singapore. For example, the corporate income tax rate is 17 percent for chargeable income over S$320,000. On the other hand, the personal income tax rate is 18 percent for the first S$320,000 and 20 percent for income over this level. Please visit the Inland Revenue Authority of Singapore’s (IRAS) website for more information on personal income tax rates.
Furthermore, businesses are eligible for substantial tax breaks from the government in the form of tax exemptions and rebates. In 2018, for example, all businesses may be eligible for a 40% tax refund up to S$15,000 in 2018. Singapore still retains its allure by assisting businesses in avoiding double taxation. Visit the IRAS website for more information. A few deductions are available to sole proprietors and partnerships from the government. Finally, look into the grants that are open to SMEs in Singapore.
Liability and risk of relocating & incorporating company in Singapore
To incorporate company in Singapore also comes with a different degree of liability. If you are running a sole proprietorship, for example, your personal assets may be put at risk in the event of a liability case, such as a lawsuit or bankruptcy. By considering to incorporate company in Singapore or a limited liability partnership, you will minimize the risk to the company’s assets. As a result, in the event of a liability situation, only the business’s assets will be at risk. Partnerships and limited partnerships, on the other hand, have a similar level of protection from uncertain conditions. Individual partners, on the other hand, are individually liable for business liabilities incurred as a result of their own conduct, even if they are not responsible for the actions of other partners.
Registration procedure of incorporating company in Singapore
In Singapore, the specifications and procedures for starting a company are relatively simple. Any incorporation application must be submitted through the Accounting and Corporate Regulatory Authority’s (ACRA) online terminal BizFile+. You must be at least 18 years old and use your assigned SingPass ID to register. To enroll, you must be a Singaporean, permanent resident, or pass holder at the time of your submission.
Before you dive into the registration procedures you must make sure that all requirements are already prepared. By preparing the necessary documents it will make your registration faster. This way you wouldn’t be wasting your resources and can get through the procedure immediately. Even if Singapore implements easy policies on business transactions. An entrepreneur should remember that these policies and laws are strictly observed. That is one of the things that makes Singapore’s economy one of the best on the globe.
When will I be notified that my Singapore business has been incorporated?
The Certificate of Good Standing establishes the approved company registration Singapore process and confirms that it is still active on the ACRA Corporate Registry. It bears the electronic signature of ACRA’s Assistant Registrar and is only open to businesses. The certificate will include the company’s name, incorporation date, status, and activities.
Quickly and easily incorporate a business in Singapore today
WLP Group is the dominant provider in Singapore’s company formation. We are well-positioned to assist your business with a wide range of services such as work visas & relocation, accounting & taxation, business licenses, company secretary, and trademark registration. All these services for a practical service fee. Contact us today and let us start your company incorporation process.