Singapore is considered the main business and trade center of Southeast Asia. This city-state has a highly developed and successful market economy, and has attracted businessmen wishing to register a company in Singapore for many years for its open and corruption-free environment, legal and political stability and low taxation.
Meanwhile, the coronavirus pandemic, which caused the global recession, has had a negative impact on the Singapore economy, which is experiencing a record decline in the second quarter of this year.
The drop in GDP relative to the previous three months was 42.9%. The decline in the size of the Singaporean economy has been observed for two quarters in a row, which indicates a state of technical recession. Compared to the same period last year, the economy contracted by 13.2%, also marking the fastest ever economic decline. The Singapore economy has been hit hard by the impact of the pandemic, which continues to negatively impact economic activity. Singapore's GDP is expected to fall by 5-7% by the end of the year.
Singapore corporate law
If you are planning to establish a business in Singapore, please note that the incorporation of companies is carried out here in accordance with the Companies Law.
Below, you will find a list of most popular forms types of companies that can be registered in this jurisdiction.
Private Limited Company
When intending to open a company in Singapore, we draw your attention to the fact that the most popular organizational form of enterprises in Singapore is considered to be a private company limited by shares. Its advantage is that the company is a separate legal entity, and shareholders are not responsible for its debts.
Exempt Private Company
To register a Singapore firm as an EPC, a maximum of 20 individual shareholders are required. This type of company is subject to audit requirements if the company's annual turnover is over 5 million SGD. The annual tax return is submitted within one month after the company's annual general meeting.
Public Limited Company
When incorporating a company in Singapore, please note that the word "Limited" must appear in the name of the company. The number of shareholders is not limited. This type of company is usually listed on the stock exchange and raises capital by issuing stocks and bonds, but this requires registering a prospectus with the Singapore currency board.
Company Limited by Guarantee
Registration of a Company Limited by Guarantee in Singapore aims to engage in non-commercial activities in the public or national interest. The company has no share capital, consists of members, not shareholders.
Subsidiary of a foreign company
It is possible for a foreign company to establish a branch or subsidiary in Singapore. It should be noted, however, that the branch does not enjoy tax incentives provided to local businesses. The branch must bear the same name as the head office and must have a registered office address in Singapore. To service and receive all correspondence, the unit appoints two agents who are residents of the country.
Managerial issues
Any company registered in Singapore must have at least one director who is a local resident. Within 6 months from the day the company was established in Singapore, a secretary is appointed, who must also be a citizen of the country. We note that it is forbidden to appoint a director and a secretary in one person.
Thanks to the favorable tax regime, it is a good idea to open a company in Singapore, despite all the negativity associated with the pandemic. Experienced specialists of IQ Decision UK will assist at all stages of company registration in Singapore, and will also take over all the organizational issues to avoid unnecessary material and time costs.
