If you are new to the Singapore company ecosystem and have been exploring setting up Singapore companies, chances are that you have come across various specifics on what is needed and a wide variety of price range.
Here we have a comprehensive guide with more information, such as taxation, international factors, and necessary documents. Before we discuss the cost of setting up a company in Singapore, below is the list of five essential requirements for registering a company.
Directors
The Accounting & Corporate Regulatory Authority (ACRA) shall act as the Registrar of the Company. It manages the registration process for companies in Singapore. It is by Chapter 50 of the Companies Act. And you must comply with all of its requirements for compliance.
For your Singapore company enrollment, you will need a minimum of one local director who is either a local citizen, a permanent resident of Singapore, or an individual with a valid employment pass. If you are a foreign firm with no local people to appoint a resident director, you may either find a candidate by yourself or through qualified firms or nominate your Singapore-hired workers as your own.
Company Secretary
Section 171 of the Singapore Companies Act, you will need to designate a suitable corporate secretary within six months of the establishment of your company. If your company has only one director or shareholder, you would need to name a different individual to be the company’s manager.
Singapore private limited companies can have a minimum of 1 shareholder and a maximum of 50 shareholders. Shareholders can be an individual one, another legal entity, such as your BVI business or a trust. Singapore’s private limited companies are permitted to hold 100% international shares.
Address Registration
Each company in Singapore is required to have a local address in Singapore, where the company keeps all of its regulatory documents. The address is not a PO packet.
The minimum paid-up capital needed to establish a business is $1. A company could increase its share capital at any time by injection of additional money.
Company Name
The company name must get approved before the official registration of a company.
Taxation Procedure
Singapore has quite a low corporate tax rate as compared with other major economies in the world. The corporation’s tax at a standard rate on its taxable income and, with effect from 2009, the corporate tax is now 17%. Also, capital gains are not payable in Singapore.
Post-incorporation Tasks after Company’s Registration
After the company is registered, it is essential to do the following tasks:
- Open the company’s corporate bank account. Singapore has a wide range of options for such an account.
- Apply to any business license, if any. Singapore’s business environment has limited red tape, and most businesses do not require a permit.
- Make sure that you continue to comply with Singapore’s corporate legislation on an ongoing basis.
Cost of Setting up a Company in Singapore
Their costs for different types of Singapore company packages are different.
- Local entrepreneur
This bundle is for entrepreneurs who wish to set up a Singapore business and have their own regional Singapore director. Company incorporation services coast 900$. The company secretary costs 800$ per annum. Including another cost of bank account registered office address etc. total amount will be 2700$.
- International Entrepreneur without Relocation
This package is ideal for international entrepreneurs who want to set up a Singapore offshore business but are not intending to relocate to Singapore. Company incorporation services will cost 900$. Adding up the cost of company secretary per annum, registered office address, bank account, etc. total company’s set up fee is 5000$.
- International Entrepreneur with Employment Pass
This package is suitable for international entrepreneurs or professionals wishing to establish a Singapore company and move to Singapore to run their company operations. You must have a degree and work experience to set up a business and apply for an employment pass.
Conclusion
Singapore is the perfect location for multinational companies to set up their headquarters. Fast trade and investment make Singapore one of the most competitive Asian countries and one of the best places to do business. The above guidelines and cost information will make the process easier.
