The advantages of establishing a business in Singapore
Singapore is a secure, pro-business climate with a well-respected government that has transparent and consistent rules that protect companies’ physical and intellectual property.
Singapore is one of the most corrupt countries globally, with minimal red tape in doing business. It also has a well-developed network that meets all of the business industry’s needs, and it is recognized as one of the world’s top technology countries.
Singapore is an excellent place for international corporations to establish their headquarters. Singapore is one of the most dynamic countries in Asia and one of the simplest places to do business globally, thanks to strong trade and investment.
Your company will get the following benefits by establishing its worldwide headquarters in Singapore:
• When compared to other major economies, Singapore has a lower corporation tax rate. A company is charged at a fixed rate on its taxable profits, and the corporate tax rate has been cut to 17% beginning in 2009 (YA 2010).
• All Singapore-based companies that qualify for the whole tax relief system of Singapore tax – ask one’s organization for the particular conditions needed to qualify – will pay no tax on the first $100k of income tax for the first three years and 50% of the existing corporation tax rate on the next $200,000 of tax liability.
• Singapore’s network of over 50 extensive Double Taxation Agreements; • Singapore’s numerous free trade agreements and Investment Guarantee Agreements; • Singapore’s tight execution of its robust intellectual property laws; • Coverage for your ideas and innovations; The Government has launched several initiatives and programs to help budding entrepreneurs gain access to financing and support. Cash grants, government-backed equity funding schemes, business incubator programs, and debt financing schemes are among the funding options available. ACE Start-ups, iStart-ACE Scheme, and iSPRINT are examples of strategies to help startups raise funds.
The disadvantages of establishing a business in Singapore
Singapore has led its native workforce toward higher-value occupations such as banking, biochemistry, and industrial engineering through education and advertising. This results in a labor shortage in the hospitality, food and beverage, tourist, and retail industries.
Accepting a flood of immigrants eager to work in these areas is the only way to fill this deficit. As a result of fille supply and demand, more significant foreign labor levies and quotas are imposed, raising the labor cost for small enterprises.
In addition to the high labor expenses mentioned above, Singapore’s land prices are high because of the country’s small size and vital port location. In Singapore, land space is both expensive to acquire and rent.
Compared to neighboring Asian countries, renting an office, developing semiconductor manufacturing, and leasing a retail outlet space might be costly.
Singapore lacks natural resources and is heavily reliant on importing raw materials and finished goods from other countries. This raises living costs and the cost of items sold, rising to overall costs.
How to start a business in Singapore When You Are Non-resident?
You can complete all Singapore company formation processes (and work visa formalities, if necessary) without needing to travel to Singapore.
All you have to do is hire a professional agency, communicate with them via email or phone, submit all the necessary paperwork (details below), and pay via PayPal or debit card.
You can then pick up the finished paperwork wherever you like and send the signed documents back to the agency by any global courier service.
The only time you may have to travel to Singapore is to open a bank account, depending on the bank you select.
Foreigners who want to start a business in Singapore should examine the following factors:
• There is no obligation for you to acquire any special Singaporean visa if you wish to organize a private company and have no desire or plan to move to Singapore, as Singapore legislation does not enable foreign persons or corporations to self-register a company. You can run your business from anywhere in the world and come to Singapore on a tourist visa anytime you need to deal with business problems on a brief basis.
However, please remember that you’ll need to hire a local director in such cases, as each company must get at least one individual director.
• If you wish to establish your company in Singapore, you must acquire an Occupation Pass or an Entrepreneur Pass kind of work permit. You can serve as the city resident manager of your company once you have got your work permit.
Required Documents & Steps to Start Business in Singapore
The following are the steps to forming a company in Singapore:
• Pay the professional agency the incorporation charge;
• Pick a name for your new business;
• Pick a name of your new business;
• Provide a copy of your passport, an actual copy of your multi-family address proof (such as a utility bill), as well as fill out a questionnaire with basic questions like your address, card details, and the names of the company’s shareholders and directors (if you plan to start the company on your own, you could be the director of the company and shareholder);
• For a simple company structure, the above-mentioned required documents should suffice for your company to prepare company formation paperwork and submit it to you via email for signing unless you have particular requirements.
• The agency will move ahead to incorporate the company’s website after receiving all original, signed company registration documents via global courier services, such as the notarial passport number and residential address proof;
• The entire incorporation process (from collecting documents to online incorporation) should take about five working days.
The overall cost of forming and running a business in Singapore.
First and foremost, select a Singapore business creation package:
Local Businessman: This package is designed for entrepreneurs who want to start a business in Singapore and have their own Singapore Director.
International Entrepreneurs Without Shifting: This package is designed for international investors who want to set up an offshore firm in Singapore but do not intend to live there.
Foreign Enterprise With Work Permit: This package is designed for international investors or professionals who want to establish a Singapore organization and relocate their operations to Singapore. To start a business and qualify for an employment pass, you should have a bachelor’s degree and suitable job experience.
Choosing a qualified person to function as a resident member of your Singapore company is critical for a client who wishes to use nominee director services. A poor appointment decision could have disastrous ramifications for the company. The majority of professional firms that provide Singapore incorporation services also offer the benefit of a nominated resident director.
The package costs for Singapore Corporation Registration / Singapore Branch Incorporation are listed below (in Singapore Dollars, SGD).
It’s worth noting that 1 USD is currently worth roughly 1.35 SGD while writing this post.
Also, the term “W/GST” in the table refers to the price that includes a 7% Value added Tax that must pay on the authority of the Government.
Here the package fees:
| PACKAGE | LOCAL ENTREPRENEUR FEE (SGD) | FOREIGN ENTREPRENEUR WITHOUT RELOCATION FEE (SGD) | FOREIGN ENTREPRENEUR WITH EMPLOYMENT PASS FEE (SGD) |
| Company Incorporation Services | $900 (W/GST $963) | $900 (W/GST $963) | $900 (W/GST $963) |
| Company Secretary (per annum) | $800 (W/GST $856) | $800 (W/GST $856) | $800 (W/GST $856) |
| Registered Office Address (per annum) | $500 (W/GST $535)* | $500 (W/GST $535)* | $500 (W/GST $535)* |
| Opening of Singapore bank account | $500 (for 1st bank), Virtual Office Services not include | FREE (for 1st bank), Virtual Office Services are included** | $500 (for 1st bank),Virtual Office Services are note included |
| Nominee Director (per annum) | Not applicable | $2,000 (W/GST $2,140) | Temporary –$500 (W/GST $535) for 3 months |
| Refundable Deposit | Not applicable | $,2,000 | $2,000 |
| Employment Pass | Not applicable | Not applicable | $2,500 (W/GST $2,675) |
| COMPANY SETUP COST (before discount) | $2,700 (W/GST $2,889) | $6,200 (W/GST $6,634) | $7,700 (W/GST $8,239) |
| Promotional Discount | Not applicable | $1,200 (W/GST $1,284) | $1,200 (W/GST $1,284) |
| TOTAL COMPANY SETUP COST (with discount) | $2,700 (W/GST $2,889) | $5,000 (W/GST $5,350) | $6,500 (W/GST $6,955) |
*If you can produce a native Singapore location as the company’s registration address, the price for the locally entrepreneur package will be waived.
* To obtain bank tools, prospective bank details, or even other papers, a Web Application Service is required. Daily, received documents will be examined, scanned, and sent to the client through email.
From the second-year forward, these are the maintenance charges for the Singapore Company.
| DESCRIPTION | LOCAL ENTREPRENEUR FEE (SGD) | FOREIGN ENTREPRENEUR WITHOUT RELOCATION FEE (SGD) |
| Provision of Company Secretary (per annum) | $800 (W/GST $856) | $800 (W/GST $856) |
| Provision of Registered Office Address (per annum) | $500 (W/GST $535)* | $500 (W/GST $535)* |
| Nominee Director (per annum) | Not applicable | $2,000 (W/GST $2,140) |
| Annual Return Filing Fee | $60.00 | $60.00 |
| TOTAL MAINTENANCE COSTS (excluding out of pocket Expenses) | $1,860 (W/GST $1,451) | $2,860 (W/GST $3,591) |
* If you can offer a native Singapore address as the company’s registration address, the price for the local entrepreneurial package will be waived.
A Singapore company must also create accounting information and submit an audited report to the Inland Revenue Department of Singapore (IRAS) once per year (some companies’ status are exempt from audit; check with your agency).
Within 18 months of incorporation, IRAS will issue the first tax return. Accounting, auditing, and taxes services are also available from a reputable firm. This is not a free service, and charges may vary depending on the number of invoices you generate.
You may quickly obtain a quote from the agency, agree on a price, pay, and email all of your business contract documents to the organization. The company accountant will handle all of your accounting, audit preparation, and personal Tax for you.
How to register a business account in Singapore that accepts many currencies
Singapore banks adhere to international risk management norms. This means that they will gather some specified documents before registering you as a customer to comply with anti-money laundering legislation.
They could include documents like the following (in English):
• Employment contract • Work attestations and professional credentials
• Employment contract
• Work attestations or professional credentials
• Curriculum vitae • Proposal for a business
If you already have a business, they may ask for extra documents as proof of ownership, such as:
• Certificate of Incorporation
• Certificate of Incorporation
• Certificate of Business Registration
• Business card
• Annual tax return
• Documents proving that you are running a business, such as sales or purchase invoices
You will need to travel to Singapore and meet with a banker to open bank accounts. Your agency, on the other hand, can help you set up a meeting with the banker for a bit of cost (500 SGD), and complete the bank opening process
Just make sure to bring your passport, proof of residency, and money for the initial payment.
You can set up an account on a site like Aspire if you aren’t a Singapore resident and wish to open a business bank account without the hassles of traditional banks. It’s simple to complete and can be done online.
It’s worth noting that you can open its off bank account (in Cypr樂威壯 us, for example) without ever visiting Singap威而鋼 ore.
In this instance, I recommend that you examine the benefits and drawbacks of this technique with the incorporation firm of your choice ahead of time.