Summary

Singapore, officially the Republic of Singapore, is a sovereign city-state located in Southeast Asia. It's renowned for being the world's most competitive economy according to the World Economic Forum, surpassing the United States. Singapore also ranks high on the United Nations' Human Development Index (HDI) and is among the top ten countries in nominal per capita GDP, as estimated by the IMF.

Singapore serves as both a city and a country. Here are key points to consider before registering a company in Singapore:

- Capital City: Singapore

- Currency: Singapore Dollar (SGD)

- Languages: English, Malay, Mandarin, Tamil

- Ease of Doing Business: Very Easy

- Payroll Frequency: Monthly

- Population: Approximately 5.85 million (as of December 2020)

- VAT (GST) Rate: 7%

- GDP Growth Rate: 3.1%

Singapore is often referred to as an "Asian tiger" due to its rapid economic growth. Investors are attracted to Singapore because of its business-friendly policies and advanced technology infrastructure. Its strategic location in Southeast Asia facilitates trade and enhances access to regional and global markets.

Reasons to consider Singapore for company registration include:

1. Favorable export-oriented market conditions.

2. A robust and sustainable economy.

3. Access to diverse international markets.

4. Proximity to Asia, the world's largest consumer market.

Types for Singapore Company Registration

·  E-Commerce Industry

  • Singapore fosters consumer-centric innovation, making it ideal for online businesses like Amazon, Lazada, and Qoo10.
  • With over 3.3 million online shoppers, there's significant growth potential.

·  Retail Industry

  • From supermarkets to clothing stores, Singapore offers diverse retail opportunities.
  • Retail sales happen through shops, kiosks, mail, and online platforms.

·  Ed-Tech Industry

  • EdTech is booming in Singapore, driven by high demand for enrichment and education services.
  • Significant spending on education presents opportunities for coaching institutes and study visa services.

·  Food Industry

  • Singapore imports a variety of food products, making it lucrative for food exporters.
  • The diverse cuisine in Singapore ensures continuous demand for food products.

·  Travel Industry

  • Singapore attracts millions of tourists annually and is a hub for business and education.
  • Establishing a travel agency in Singapore can tap into this vibrant market.

·  Tech Companies

  • Singapore is emerging as a technology hub, attracting tech companies with its strategic location and supportive ecosystem.
  • Ideal for launching technology businesses with regional aspirations.

Essential Requirements for Singapore Company Registration

Essential Requirements for Registering a Company in Singapore

  1. Minimum Shareholder Requirement
    • A proposed company must have at least one shareholder.
  2. Shareholding Eligibility
    • Individuals or corporations can hold shares in a company.
  3. Foreign Ownership
    • Foreigners can own 100% of the company.
  4. Minimum Paid-Up Capital
    • Only SGD $1 in paid-up capital is required to start a business.
  5. Capital Injection
    • Additional capital can be injected at any time to raise share capital.
  6. Shareholders and Directors
    • Both Singapore residents and non-residents can be shareholders and directors.
  7. Director Requirements
    • A corporate director must be at least 18 years old with no upper age limit.
  8. Singapore-Based Director
    • At least one director must be based in Singapore, holding Singapore citizenship, permanent residency, or an Employment Pass.
  9. Company Secretary
    • Within six months of formation, every company must appoint a certified company secretary who is a natural person and a Singaporean citizen.
  10. Registered Address
    • A local registered address is mandatory for storing all statutory documents; a PO box is not acceptable.
  11. Name Approval
    • The company name must be approved by the government before registering the company in Singapore.

Detailed Steps for Singapore Company Registration

·  Apply for Company Name

  • Choose a unique company name that reflects your business. Reserve the name with ACRA for up to 60 days after application.
  • Guidelines:
    • Ensure no trademark rights are violated.
    • The name should not be offensive.
    • It must be distinct from existing company names.
    • The name shouldn't already be reserved.

·  Decide the Right Business Structure

  • Select a suitable business structure based on legal and tax considerations that align with your business goals.

·  Prepare Documents for Singapore Company Registration

  • After name approval, gather necessary documents:
    • Company Constitution (formerly Articles of Association).
    • Written consent from each director to serve on the board.
    • Details of officers and shareholders including names, titles, and residential addresses.

Step-by-Step KYC Requirements for Registering Company in Singapore

 

ACRA mandates that your Corporate Service Provider (CSP) conducts a Know Your Customer (KYC) due diligence, typically requiring the following verifiable information:

 

1. Authentication of Identity and Address

   - Documents proving identity and residential address are required.

   - These documents must be in English or officially translated into English to be considered valid.

2. Credentials of Shareholders and Executives

   - Detailed credentials of prospective company shareholders and executives are essential.

   - Each CSP may have specific document requirements according to their own regulations.

Important Note:

- The exact documents required may vary between CSPs.

- All documents must either be in English or officially translated into English.

Perks of Online Company Registration in Singapore from India

·  Favorable Tax Regime

  • Corporations enjoy tax rates ranging from 0% to 17%, and individual taxpayers from 0% to 22%.

·  Tax-Free Dividends

  • Dividends distributed are tax-free.

·  No Capital Gains Tax

  • There's no tax on capital gains.

·  Easy Tax Rebates

  • Singapore offers straightforward tax rebate pooling.

·  Unilateral Tax Credit

  • Provides unilateral tax credit for foreign taxes paid.

·  Reduced Withholding Taxes

  • Lower withholding taxes on income sourced from outside Singapore.

·  Extensive Tax Treaties

  • Singapore has 75 comprehensive tax treaties and agreements, facilitating international business.

·  Free Trade Agreements

  • Access to 26 Free Trade Agreements/Economic Partnership Agreements.

·  Robust Financial System

  • Well-established financial infrastructure with over 160 banks.

·  Accessible Financial Resources

  • Availability of low-cost financial resources.

·  Intellectual Property Incentives

  • Incentives such as the Productivity and Innovation Credit (PIC) to promote Singapore as an IP hub.

·  Leading Financial Center

  • Singapore is Asia's largest financial center, known for corporate services.

·  Liquid Financial Markets

  • Highly liquid markets for financial instruments.

·  Ease of Doing Business

  • Ranked as one of the easiest places in the world to do business

Methodical Timeline for Company Registration in Singapore

·  STEP 1: Choose a Company Name

  • Select a unique name and obtain approval from the relevant authority.

·  STEP 2: Document Preparation

  • Prepare necessary documents such as:
    • Company Constitution (formerly Articles of Association).
    • Directors' and shareholders' details.

·  STEP 3: KYC Due Diligence

  • Conduct Know Your Customer (KYC) checks for shareholders and directors.

·  STEP 4: Online Application

  • File the company registration application online with ACRA (Accounting and Corporate Regulatory Authority).

·  STEP 5: Bank Account Opening

  • Open a corporate bank account using the issued incorporation certificate.

·  STEP 6: Tax Registration and Compliance

  • Complete other tax registrations as required, ensuring compliance with Singapore tax regulations.

Things to keep in mind while you Register Company in Singapore

·  Unique Company Name

  • ACRA approves business names and rejects those too similar to existing names.
  • Certain terms and phrases may require additional approvals from relevant government bodies.
  • Every Singapore offshore company must include "Private Limited" or "Ltd." in its name.

·  Restricted Words

  • Terms like Assurance, Bank, Building Society, Royal, Trust, etc., require justification for use in company names.

·  Restricted Sectors

  • Businesses in sectors like banking, insurance, fund management, etc., have specific regulatory restrictions.

·  Registered Office

  • A registered office must be maintained in Singapore; virtual offices or addresses are generally not accepted.

·  Local Director Requirement

  • A minimum of one director is required for a Singapore company.
  • Directors can be of any nationality but at least one must be a resident in Singapore.

Overview of Taxes in Singapore

axation in Singapore: Key Points

  1. Progressive Tax Rates
    • Non-residents pay a flat tax rate ranging from 15% to 22%.
    • Residents (citizens) are subject to a tax rate of 0% to 22%, capped at 22%.
  2. Tax on Profits
    • Singapore taxes profits, not revenues. The corporate tax rate is 17%.
    • Various tax incentives and exemptions are available to reduce taxable income.
  3. Territorial Tax System
    • Singapore adopts a territorial tax system.
    • Tax treaties with over 80 countries help prevent double taxation, allowing for foreign tax credits.
  4. Tax-Free Dividends
    • Dividends distributed to shareholders from post-tax profits are tax-free in Singapore.
  5. Capital Gains Tax
    • There is no capital gains tax in Singapore.
  6. Tax Benefits for R&D
    • Significant tax benefits are available for investments in research and development (R&D) and productivity-enhancing technologies.
  7. Exemption on Foreign-Sourced Income
    • Singapore does not tax several types of income derived from sources outside the country.

Essential Documents for Singapore Company Registration

 ·  Copies of Shareholders' Passports: This involves providing copies of passports for all shareholders of the company. This verifies their identity and ensures compliance with local regulations.

·  Proof of Residence of Resident Director: The Resident Director must be a Singaporean citizen, Permanent Resident, or holder of an Employment Pass/EntrePass with a local residential address. Proof of residence such as a utility bill or a rental agreement is required to verify this.

·  Parent Company Information (if applicable): If the company being registered is a subsidiary or if a foreign corporate entity holds stakes in another company, details of the parent company are needed. This includes information such as the company's registration documents, structure, and ownership details.

Why choose E-Founder India to Register Company in Singapore

f you're looking to register a company in Singapore, E-StartupIndia offers comprehensive services tailored to your needs. Our team of specialists, based in both India and Singapore, provides expert guidance through every step of the Singapore Company Registration process. From initial consultation to handling documentation and compliance, we ensure your business is set up efficiently and legally.

Here’s how we can assist you:

1.     Singapore Company Registration: We streamline the incorporation process, ensuring all necessary paperwork is completed accurately and on time.

2.     Comprehensive Services: Beyond registration, we offer additional services like Business Loans, GST Registration, TDS Return Filing, GST Return Filing, ISO Certification, and other regulatory compliance services.

3.     Expertise and Support: With extensive knowledge across various sectors, our team guides you through structuring your business correctly from the start, minimizing potential issues.

4.     Global Reach: Whether you’re in India or elsewhere, our services facilitate establishing your business footprint in Singapore seamlessly.

Let E-StartupIndia help you launch your business successfully in Singapore. Our dedicated team is committed to supporting you throughout the entire process and beyond.