Hidden Facts about Company Incorporation Singapore

Company incorporation Singapore is the first step you must need to take when starting your business activities in the jurisdiction. Ignite your passion towards entrepreneurship by taking the plunge. If handled efficiently, your business will be bound to yield a good amount of revenue.

You might be wondering, why only Singapore for company incorporation? Why not other jurisdictions? The Republic is one of the easiest places for doing business. As per the prestigious World Bank report “Ease of Doing Business,” Singapore ranked one of the top positions for more than ten years now. This accolade is enough to justify the reputation Singapore has earned in these years.

Nevertheless, before keeping faith into company incorporation in Singapore, you must know a few vital facts about the process. Here are the few facts you should keep in mind.

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Singapore Jurisdiction is Stringent

When you opt to incorporate a company in Singapore, you must follow certain obligations laid down by the authorities. Accounting & Corporate Regulatory Authority (ACRA), the national regulator, oversees the process. It is the Singapore Companies Act, Cap 50, that governs the company incorporation process. There are some minimal requirements and necessary documents which must be met and furnished during the process of incorporation. Since the authority is stringent, there would not be any consideration for delay and non-compliance.

Cost of Singapore Company Incorporation

The cost of company incorporation Singapore has been specified by the authority i.e. ACRA. The fee has to be paid during the process of filing application for registration. If you want to enjoy a hassle-free incorporation, you can hire a complete package of company incorporation from trusted firm like SBS Consulting. The firm offers an attractive package of incorporation at S$699. It comes with free services of the corporate secretary and registered address for first one year. The fees of the firm are highly competitive in the market.

There is Minimal Bureaucracy

The process of Singapore company registration is divided into two simple steps: 1) Company Name Approval and 2) Company Registration (filing of the application form). Both of the steps have been computerized and thus, can be done online. It is a quick, straightforward and simple process. Since the entire process can be done electronically, the involvement of bureaucracy is very minimal or zero. There are kiosks in premises of the ACRA’s office, and also, the official website that can be used to get the registration done.

Fulfilling Minimum Requirements of ACRA

Reiterating, the applicant must meet a set of minimal requirements put in forth by the ACRA before applying for company registration. Here is the list of minimal requirements.

  • The Approved Company Name (it must be approved by ACRA)

  • One local director who is an ordinarily resident in Singapore (Citizen, PR or holder of Employment Pass/ EntrePass)

  • Minimum 1 or maximum 50 shareholders should be there

  • A local registered office address is must

  • Minimum paid-up capital is S$1

  • A local company secretary must be appointed within six months of company incorporation

The process of company incorporation in Singapore would be completed unless you fulfill all of these requirements.

Singapore Taxation System is Pro-business

The taxation regime of Singapore is deemed to be one of the attractive and progressive policies in the world. It follows single tier tax system. The revenues of the company are taxed at corporate tax rate (headline rate is 17%). The dividend earned by the shareholders are tax-free as there is no capital gains tax.

A web of more than 70 Double Tax Agreements saves the tax payer from paying tax in more than one country. Plus, implementation of full tax exemption scheme is an added advantage for startups. It allows startups with tax-free income for first three years if their annual revenue is less than S$100,000. Also, the existing and new companies whose annual revenue ranges between S$100,000 to S$300,000, will be taxed at the tax rate of 8.5%.

Annual Compliance Requirements

As stated earlier in this blog, the Singapore jurisdiction is very strict about its laws and regulations. You will be required to comply with a set of annual compliance requirements such as hosting AGMs, filing Annual Returns, preparing financial statements, GST return filing, XBRL reporting, etc. Make sure to meet all the requirements in order to avoid the legal actions of the authorities.

Singapore enjoys a reputation of being the leading business hub in the Southeast Asian region. There are many attributes which contributes to the reputation of the Republic. These attributes drive many global entrepreneurs to come and start their business in the soils of the island country. Tax benefits, forward looking policies, pro-business ecosystem, world-class infrastructure, talented workforce, etc. are to name a few.

Since the process of company incorporation Singapore demands you to follow the local regulations, you are advised to take the assistance of a trusted corporate firm like SBS Consulting. The professionals of the firm will assist you all throughout and beyond the process of company registration.