9 Things To Know Before Incorporating A Business In Singapore
Singapore’s business-friendly regulations and favourable tax system continue to attract a large number of international entrepreneurs and investors. The city state has become the most important gateway to Asia for many companies from the West. If you’re still deliberating whether Singapore is the right place for your new company, we’ve compiled a list of 10 things you need to know before launching your new business in Singapore.
- Fully Foreign-Owned Company
When incorporating a company in Singapore, you’re allowed to own 100 percent of the company. This is true for both individual and corporate stockholders alike. In practice, this implies that a foreign individual or corporation can own all of a Singapore company’s profits and assets. A minimum of one local (i.e. Singapore resident) director is required for your firm. We’ll explain more in our next point:
- A Mandatory Local Resident Director
A local director can be a Singaporean citizen, permanent resident, Employment Pass holder, or EntrePass holder. For a nominal cost, your corporate services provider can readily provide such a local director for you. This is because the Singaporean government requires someone available to be contacted on behalf of the firm. This may be to ensure that statutory obligations are met, such as filing yearly returns and maintaining accounting records, among other things.
- Local Company Secretary
A corporation must also appoint a local company secretary. According to the Singapore’s Companies Act, a company secretary must be a Singaporean resident, since they will serve as a connection between shareholders and directors, as well as the business’s chief compliance officer and board of directors advisor.
- Share Capital Requirements
One of the facets that make Singapore a good location to start a new company is the share capital requirements; it can be as low as S$1! Of course, the exact amount will vary depending on the nature of the business and its future capital requirements, but suffice to say it eases the process of incorporation.
- No Specific Visa
No specific visa is required to start a business. You can come to Singapore as a frequent visitor and complete all of the necessary paperwork to start a business. In some cases, you may be able to start your business without even having to travel to Singapore.
- No Mandatory Physical Office
- Can Operate from Overseas
Even without recruiting local employees, a foreign corporation can still function on Singaporean soil. There are no legal requirements for a minimum number of employees in a Singaporean company, thus it can be entirely owned and managed by its sole owner from elsewhere.
- Simple Reporting
The reporting requirements are easy and simple: To ensure that the company’s information on the Accounting and Corporate Regulatory Authority (ACRA) register is up to date, all companies incorporated in Singapore must file annual returns through ACRA. The corporation must also submit its financial results and the date of its AGM once a year.
- Corruption-Free
Singapore is unburdened by corruption. It is a country that is fair, transparent, and efficient. According to the Transparency International Corruption Perceptions Index 2021, Singapore is recognised as the world’s fourth least corrupt country in the world and is the only Asian country in the top ten rankings! Equal justice for all, as well as well-run and law-abiding government institutions, make it an appealing place for conflict settlement. For entrepreneurs, the country has one of the most business-friendly regulatory systems in the world.
Company incorporation services in Singapore offered by certified consultants can be the best way to kick-start your venture in this promising country, since they can manage all the intricate details for you. Keep these pointers discussed here in mind and create a timeline for the steps of incorporating your firm in Singapore so that you progress without taking up too much time. Best of luck!
