It is a well-known fact that Singapore offers one of the best and safest environment for any new business setups. In fact, the World Bank Report graded Singapore as the number one country in terms of the doing business for 2 consecutive years (07 and 08). Singapore is also ranked as the 2nd most competitive country in the world.
Starting a new business in Singapore is a wonderful idea for anyone who wants to start a business. However, you have to be aware of the various governing laws when forming a company in Singapore.
Singapore Company Incorporation - stipulations
The obligations are simple:
- Both Singaporeans and foreigners can register a new Singapore company
- 100% foreign ownership of the company is permitted in Singapore
- Only $1 for paidup capital
- There must be one shareholder and one director
- The company must have at least one local director
- The company must have a Singapore registered address
- The company must appoint a local qualified company secretary
What are the benefits
Here's one great benefit: The government allows tax exemption for the first $100,000 profits for fresh companies, up to 3 years. This is a very competitive benefit that many overseas establishments enjoy.
The corporate tax for profits between $100,000 to $300,000 is only 8.5% and profits above $300,000 is just 17%. Not many countries can match the low tax rates set by Singapore, which makes it a very big factors for new company set ups.
Company secretarial services
Here's one thing that you must take note: the company must appoint a local, qualified company secretary. Many company usually don't hire a full-time secretary and it's assigned to an external party that specializes in secretarial services.
So, the challenge here is to find and appoint a company secretary who is qualified and professional. In Singapore, there is no lack of capable secretaries. In fact, many are professionals so finding one should be easy.
The wrap-up
Forming a Singapore company is a good idea for most overseas establishments. The new company will not only get tax exemptions, you get a good pool of local talents.
