Singapore hits way above its weight. With no natural resources whatsoever, somehow a small island became the most business-friendly city in Asia – low taxes, a government who wants you to succeed, a legal system which can be relied upon. The instinct is correct in case you consider setting up a company here. The execution, though? That’s where people trip up. If you’re planning to expand into Asia, click here to begin your Singapore company registration today.
The initial concept to get your head around is that of business structure. Majority of the business people just get to the Private Limited Company (Pte. Ltd.), and frankly speaking, one can hardly dispute it. Personal property remains safe. The firm is an independent legal personality. Banks take you seriously. Shareholders are serious about you. It is possible that you will finally be taken seriously by your parents. The minimum amount paid-up capital is SGD 1 -s GDN one dollar You will also require a registered office address in Singapore and no, a P.O. box is not one. It must be a physical location, accessible to the public at least three hours on working days.
This is the point at which foreign business people always fall to the ground: Singapore needs one locally resident director. As a foreigner, you can own 100% of the company, it is quite legal but a person with a Singapore address must be a director. There are companies such as Hub Corporate Services, which provide Nominee Director service precisely in this case. This has been going on over 20 years and it is no workaround, it is a normal, right legit arrangement. You also have to employ a company secretary within six months after incorporating. Make that deadline and ACRA is not going to like you.
The registration process itself is done by ACRA– the Accounting and Corporate Regulatory Authority and is much quicker than most people imagine. Very often a simple application is processed the same day. But “fast” does not mean forgive sins. False documents, a name that is too close to an already existing name, or omitting steps that you are supposed to follow can create a setback in your schedule. This is precisely the type of circumstance when it is worth paying a corporate services company to do the paperwork. Hub, as an example, charges their incorporation service at S$315, which includes all government charges, and the entire process can be completed without flights at all.
Once registered, the compliance requirements do not cease they simply re-form. Annual General Meetings. Annual returns submitted to ACRA. Corporate tax returns (IRAS). When all this occurs is determined by a Financial Year End date. The first three Years of Assessment is full or partially tax exempt from new companies in Singapore – that is real money left in the business had you planned. By having an accounting, secretarial, bookkeeping and payroll firm all under a single roof, it means that there are less vendors, less gaps and less all-night panic and rushing before a filing deadline. Debate it as outsourcing a bit but think of it as an intelligent co-pilot who, in fact, has some knowledge of the route.