Setting up a company in a country that offers a thriving environment for business is a wish for everyone. Although you might have all the skills, capital, abilities and competitive advantage to start up a firm but it is equally important to have such country that understands your plans and mission and supports you equally for the cause.
With more than 110,000 expatriates, 7,000 multinational firms functioning in Singapore it is home to multicultural personnel of Chinese, American, Japanese, Malaysian, Indian and other races. Excellent workplace with integrated policies, one working language has made solidarity, variety striking features of business class working in Singapore.
Singapore is known to best to carry out the business operations. Just like every country has its terms and conditions to use the land to form a company Singapore also has some rules and regulations. Business people looking to set up corporation need to adhere strictly to the policies.
Firm registration procedure
Name of the company
Firms in Singapore can be established as private or public companies. Most companies go for private corporations as they are treated purely separate entities. Shareholders are not held liable to pay any debts beyond the capital they invested in the firm.
Coming back to registration, you must go thoroughly through all the names that have already been used in the market. Coming up with a conflicting name and searching again can cause a lot of time waste. Trademarks of other companies can’t be taken. This is advisable to check the name availability first. Normally it takes around 1-2 days to successfully complete this step.
Board members and shareholders
Singapore has the policy that even if you are foreign firm having a subsidy in the country still, you need to have at least one Singaporean nationality holder as a board of director. The number of an inclusion of members is limitless. Care must be taken that they are above 18 years and don’t hold any criminal or bankruptcy records. The number of shareholders who can buy the shares of the firm can go from 1 to 50. More than 50 are not allowed at any cost. Foreign shareholding is also allowed up to 100%. Shareholders can also transfer their shares from one person to another by following proper company procedures.
Paid up capital
Paid up the capital can be around S$ 1 and the best part is that authorized capital (country tells the company how many shares it can sell in the market) is not practiced at all in Singapore. Firms can enjoy authorizing as many shares as they want.
Taxation is a very serious issue, and Singapore doesn’t allow any firm to bypass it. Any corporation found guilty of not paying tax properly is heavily penalized, and often the license of practicing business is terminated too. A company has to pay no less than 9% for the first S$300,000 of the annual profits and after that only around 17%. There is absolutely no perception of Dividend taxes or capital gains in Singapore.
Company address must be the local address of Singapore showing a physical location where the company will be set up. The best plan for foreigners is to check for lands that governments have given subsidies on so that they can take advantage of it. Thoroughly check all the plots available and before buying does get complete information. Company formation on government land won’t be tolerated, and disputed land can offer no profit in a long run.
Company formed by foreigners
If you are a foreigner and want to set up a company in Singapore, don’t worry at all. The requirements and procedure are same. Singapore country is known for treating every person equally be it its citizen or the foreigners.
No need to visit
Your first question would be whether you are required to visit the country more often? The answer is no. You can easily communicate via emails and check the status of company formation. Although, while opening a bank account you would be required to visit. It clears more conflicting issues and to foster security issues face to face meeting is more appropriate. If by any means you can’t make it come then we do provide an alternative plan. Banks can conduct a telephonic interview to cater to the needs of the clients. Some of the famous and trusted banks of Singapore that you can choose from are:
• Standard Chartered
Some additional guidelines
Self-registration is not possible in Singapore. Hence, it is the requirement of the country to get some professional law firm for company registration process.
If you plan to remain in the home country and run the private firm in Singapore, then you surely don’t need any Singapore business visa. This flexibility is allowed so that business people can easily commence their work from native countries and visit Singapore whenever they can get time.
If you are relocating the firm from some other country to Singapore then definitely there are some more processes you need to go through. Employment pass or Entrepreneur pass are required for the movement of corporations. This work permit will allow you to work, and you will be seen as the resident of Singapore. The validity of employee pass is from one to two years, and it needs to be renewed ever the time for security purposes. The owners or staff of the company who have an education level of up to tertiary can easily acquire this permit. A sigh of relief that there is no quota system in Singapore. First come first served basis is applied and followed religiously. It shows that pressure groups have no authority in Singapore.
If you fulfill all the requirements and follow procedures properly then having the employee pass can earn you the status of permanent resident of Singapore too.
There are some of the documents that are required by Singapore. Each person who wants to operate his business in the Singapore environment must submit them otherwise he won’t be permitted to carry out the tasks. Documents include:
• Memorandum of Association
• Name of Company
• Brief Description of Business Activities
• Particulars of shareholders.
• Particular of Directors
Each and every document is required to be completed in all regards. Any discrepancies or incompleteness can result in a delay of company formation, and the person might lose the opportunity to start the business at all.
If you are a foreigner, then some additional documents requirement regarding personal information is needed to be attached. The documents for this procedure include:
• Passport copy
• Proof of overseas residential particulars,
• Know Your Client data including reference letter from bank, complete personal as well as business profile
Singaporeans residents are also required to have a Singaporean national identity card.
Let’s move on to the post-registration processes and make you aware of some the most important things that need to be taken care of too.
Upon receiving this particular document “certification of the corporation,” you can feel happy and satisfied. Your company has finally made it enter the legal web companies of Singapore. This certificate will be mailed to the founder along with registration number. You can get the hard copy if you want by paying a nominal fee of S$ 50.
The company profile
The company profile is the report that contains each and every detail about the firm that is approved. It can get from company registrar. It includes information about the paid-up capital, company name, registration number, registered address, shareholders details and board of directors.
Company seal, share certification of shareholders along with rubber stamp are also required to carry the company operations more smoothly.
Business license requirement
A business license is a very crucial step, and you need to have it if you are foreigners. The main thing here is that it depends entirely on the nature of the business you want to operate. Singapore offers full flexibility to conduct business, and one part of its awesome business set up plan is that there are only a few businesses that require a license. If you are related to any one of the businesses given below then you require the business license required:
• Import or export business
• Travel agencies
• Financial sector services
Value added tax information
Value-added tax is also known as GST tax. It is liable for every business involved in every business to pay this tax. Importance of GST tax cannot be denied the fact that this forms the main revenue source for any country. It accounts for a total of 7% of your sales and is subject to increase with time.
With such easy and smooth company formation setup who wouldn’t want to operate in such friendly environment of Singapore? The low tax rates, reduced level of GST, smooth work procedure and clear-cut government policies regarding each niche of the business is commendable. It may show why Singapore is called the hub of successful business operations.
Learn more about Singapore Incorporation and our services.