Located in Southeast Asia, Singapore is one of the world's major financial centers. The reliability & confidentiality of Singapore banks are on the par with those of Swiss banking institutions. Company registration in Singapore is quick, hassle-free & relatively inexpensive.
Singapore is ranked 2nd for ease of doing business, 3rd in global competitiveness index & 9th for human development index. All this combined creates attractive conditions for foreign investors & businessmen.
Singapore has a developed network of roads connecting the country with Malaysia. The port of Singapore is one of the biggest in the world in terms of cargo turnover; it also has 6 free trade zones.
There’s more than 100 banks operating in the country. There’s no foreign exchange control & the fact that English is the country’s official language makes doing business in Singapore a lot easier.
Registering a Company in Singapore: Requirements
Individuals seeking to open a company in Singapore must choose a name for their company. It must comply with the local legal requirements & differ from the names of existing companies. Also, it must indicate a company’s organizational & legal form.
Company Registration in Singapore
Once a name is chosen, the founders of a Singaporian company must submit the following documentation:
- an official declaration of compliance with the requirements of Singaporian laws;
- a certificate confirming the legal address;
- a written confirmation of having a registered office address;
- information about directors, shareholders, secretaries, etc.
After registering a company in Singapore, applicants receive a certificate of incorporation and a registration ID.
Singapore is ranked 7th for simplicity of its taxation system. It has a territorial tax system, i.e. income received in its territory is taxed. The corporate tax rate depends on the annual profit: up to 300 thousand SGD - 8.5%, over 300 thousand SGD - 17%. Startups are subject to 0% corporate tax for the first 3 years of operation. There’s tax incentives for renting & purchasing real estate, salaries to employees, etc.
There is no VAT in the usual sense; however. there’s a GST of 7%. Exports, international services & sale/rent of real estate aren’t taxed. Registering a Singaporian company as a VAT payer is mandatory if a company’s turnover for the last 12 months is more than 1 million SGD.
Personal income tax (from 0% to 20%) depends on the amount of income earned. Immovable property tax (10%) is levied upon renting out real estate. Excise taxes are levied on vehicles, tobacco products, alcohol & oil products.
There’s no capital gains tax. Singapore has signed agreements on avoidance of double taxation with many countries.
Citizenship & Residence Permits
Obtaining a residence permit requires having a higher education (preferably a major in finances or IT). A company’s founders or beneficiaries can also obtain a residence permit for 3 months.
How Long Does It Take to Register a Company in Singapore?
Registration of a Singaporian company can take up to 2 weeks.
Seeking to register a company in Singapore? Need advice on company registration in Singapore? Why not contact IQ Decision UK?