Starting a new business in Singapore is a great prospect for any foreign establishments. While it is great, take note that there are rules and regulations that you might want to know when incoporating a company in Singapore.
Company Incorporation Singapore - requirements
Here are a few stipulations:
- Anyone can register a new company in Singapore, applies to both locals and foreigners
- Singapore permits 100% foreign ownership
- Paidup capital of one dollar is allowed
- Minimum of 1 director and 1 shareholder is required
- The company must have at least one local director
- The company address must be a Singapore registered address
- Company secretary is a requirement
What are the benefits
Here's one great benefit: The country allows ZERO coporate tax for the first $100,000 profits for fresh companies, up to 3 years. This is a very competitive benefit that most foreign establishments enjoy.
The corporate tax is also very enticing: 8.5% tax for up to $300,000 profits and 17% for profits above that. The coporate tax rates are very competitive, which prompts many foreign companies to start their local presence in Singapore.
Other prerequisites
One important highlight here is that a local secretary must be hired by the company and this secretary must be qualified. Most of the time the secretary is not part of the company's payroll and is usually outsourced to a professional secretarial services company.
So, the challenge here is to find and appoint a professional and qualified company secretary. Fortunately, there are a number of professional and capable company secretaries in Singapore so it shouldn't be too hard to look for one.
The wrap-up
Incoporating a company in Singapore is a good plan. The new company will not only get tax exemptions, you get a huge pool of local talents.
