The business zone of Singapore is slightly different from other prestigious jurisdictions. Local authorities have established a quick process for the company registration in Singapore and also its subsequent operation. It is advantageous to operate out of Singapore and open accounts in other banks. If you are considering this jurisdiction as your target one, it is possible to establish your business presence in one of these business forms.
Major Forms of Legal and Business Presence
If you intend to run your commercial activities from Singapore, your business presence in this jurisdiction may be established here in one of these legal forms:
- Private Limited Company – a corporate entity that can have not more than 50 members whose liability doesn’t exceed the amount of their contributions made. This legal person is separated from its members and applies certain restrictions on the transfer of shares.
- Public Limited Company – a corporate entity that can have more than 50 members whose liability is also limited to the value of shares owned by them also. But, in this case, shares may be freely transferred and also offered to the public.
Registration Requirements and Steps
Company formation in Singapore covers these approximate stages:
- Identifying core business priorities you are going to realize through an entity in Singapore.
- Collecting information about future founders and beneficiaries of an enterprise.
- Choosing management for a future company.
- Selecting a business name and approving it with the Accounting and Corporate Regulatory Authority (ACRA).
- Arranging a business address for a corporate entity.
- Drafting statutory documents for an enterprise.
- Forming and submitting the set of registration documents to the registrar.
- Registration for tax and social security purposes.
- Opening a corporate bank account.
- Applying for and receiving business permits and licenses (for regulated activities).
Legal and Regulatory Framework
An option of company registration in Singapore envisages the disclosure of personal data of non-resident founders – they should be entered into the public registry. The law does not limit the amount of authorized capital by the minimum and the maximum size. Purchase of a company in Singapore may be performed by one individual, resident, or non-resident of the country. Despite the number of open registries and clear rules for non-resident companies, Singapore is considered to be one of the most prestigious jurisdictions.
A favorable local legal framework allows Prifinance to register companies in Singapore inexpensively and quickly. As a general rule, clients have a right to choose between the ready firm and the registration of a company from scratch. In the case of Singapore, the second option is preferable. The cost of the two procedures is the same and in case if the activity of new management differs from the one that was carried out before, there is the threat of closing the bank account if the company’s operations under new management are not the same as it was specified in the primary constituent documents. There are also other local legal peculiarities on which Prifinance lawyers will be glad to consult you more precisely.
Still, the local regulatory framework may be considered as advantageous. It is not associated with excessive bureaucratic formalities and ensures the ease of running a business both locally and worldwide if all compliance requirements are met entirely.
Tax System of Singapore
While assessing an option of company formation in Singapore, these tax highlights also should be taken into account:
- Corporate income tax rate – 17%
- Personal income tax rate – 22%
- Goods and services (instead of value-added) tax rate – 7%
- Withholding tax rates (for non-residents)– (i) dividends – 0% (ii) interests – 15% (iii) royalties – 10%
- Capital gains tax rates – (i) corporate – not applicable (ii) personal – not applicable.
Advantages of the Jurisdiction
Company incorporation in Singapore may be especially beneficial in view of the following benefits associated with this jurisdiction:
- Short-time period for company registration (10-14 days approximately)
- Beneficial taxation regimes
- Prestigious location for doing business with lots of financial centers
- Permit to purchase real estate – there are no restrictions on foreign ownership in Singapore
- Exemption from currency exchange control and auditing in most cases
- Safety of corporate assets – stable economy and reliable banking system ensures the effectiveness of long-term investments and capital protection
- The flexibility of management that can be arranged remotely
How Prifinance Specialists May Help You
Prifinance officers settle all organizational issues and on completion provide a full package of documents. Personal presence is not required – all the papers you will get by DHL postal service.
We offer prompt company registration and bank account opening services in Singapore and worldwide. New registration and ready-made options. Provide extensive details for more precise consultations and suggestions that can be effective for your future project.