Singapore Company Formation

Seamless Singapore Company Formation

Singapore is one of the world’s most prominent financial and commerce hubs. Its following features attract many investors to the country:

A comprehensive economy
English language use
Ease of business

With these and many other benefits, it is advantageous to consider Singapore company formation.

Setting up a company in Singapore for foreigners or locals is not at all challenging. You’ll have an expert company formation consultant like FAME to help you in your journey. We have been helping clients set up companies in Singapore and other international jurisdictions. You can get all the support and assistance to ensure a successful Singapore business setup.

Want to enjoy the benefits Singapore offers to businesses?

Consider FAME’s Singapore company formation services.

Benefits of Singapore Company Formation

Singapore company formation can lead to many benefits. First, the country has a highly developed economy and a good standard of living. Besides, it offers many benefits to new entrepreneurs and investors from Singapore or outside. Know about these benefits before considering a Singapore business setup.

Strong Economy

Singapore is a famous global trading centre. Its well-developed legal and financial system creates a friendly environment for businesses. Entrepreneurs are also attracted to its advanced infrastructure, top-notch connectivity, and encouraging government policies. It also has a stable political environment. All these benefits make the business operations smoother and easier.

Free Trading Access

Singapore’s membership in ASEAN gives it free trading access to several countries, including Vietnam, Cambodia, Thailand, Malaysia, the Philippines, Indonesia, Laos, Burma, and Brunei. Its tax treaties with several countries, including many double tax treaties, make it a favorable destination for setting up a company in Singapore.

Tax Exemptions

The corporate tax rate in Singapore is 17%. However, partial exemption is available to all companies, and new companies get more favorable exemptions. The country uses the territorial principle for taxation on income. This leads to a lower effective tax rate, making setting up a company in Singapore appealing to foreigners. Even the VAT is applicable only if the annual taxable turnover is higher than S$1 million. There is no capital gains and dividend tax.

Foreign Ownership

You can have 100% foreign ownership in a company. Thus, you do not have to think about finding a local sponsor while setting up a company in Singapore for foreigners.

Audit Exemptions

You can get exemptions from audit requirements if you have:

Only individual shareholders
The total number of shareholders is less than 20, and
The annual turnover is not more than US$5 million

If you are not exempted from audit mandates, appoint one within three months of Singapore company formation.

Ease of Doing Business

Starting and doing business in Singapore is easy and smooth. It has hassle-free procedures for company incorporation, trading, tax payments, getting permits, and other operational processes. Moreover, you can manage the entire process online with little paperwork and formalities. Also, the minimum paid-up capital requirement is just US$1.

Skilled Workforce

Singapore has many high-quality educational institutes and universities. So, there is a ready availability of highly knowledgeable professionals with extensive experience. The diverse and cosmopolitan population also gives you many options for choosing your employees. English fluency and financial and technological expertise are the highlights of the Singaporean workforce.

Procedure for Setting Up a Company in Singapore

Setting up a company in Singapore for foreigners or locals is not a big challenge. The procedure is simple and self-explanatory. Moreover, you always have the consultants from FAME to help you sail through it.

The first step is to get approval from the Registry of Companies and Businesses on your company name. For this, you must choose a unique name that is different from any of the existing companies’ names. It must not breach the copyright or trademark laws, and must not be offensive. The name is reserved for 60 days, during which the other authorities review the application for approval.

In the next step, you must submit the incorporation documents along with the registration fees to the Accounting and Corporate Regulatory Authority (ACRA). You are required to submit the following documents while setting up a private limited company in Singapore:

Application forms, signed by the authorized signatory
Passport copies of shareholders, directors, and UBOs
Shareholders, directors, and UBOs’ national identity cards
For residency proof of shareholders, directors, and UBOs, copies of recent utility bills, bank statements or credit card statements

In the case of corporate shareholders, you must submit the following additional documents:

Certificate of incorporation of the corporate shareholder
Board resolution mentioning the authorized manager
Article of Association and Memorandum of Association, signed by shareholders and directors

Ensure that you get all the necessary approvals and permits before commencing operations. Also, pay the relevant fee amount to the authority. In the last step, you receive the certificate of incorporation. It mentions the date of registration and demonstrates that you have complied with all the requirements.

Prerequisites to Fulfil Before Singapore Business Setup

You must meet some conditions to access all these benefits of Singapore company formation. Only if you satisfy these prerequisites can you set up a company in Singapore. These conditions are:

Company Types Allowed

You can establish the following types of companies in Singapore:

Private Limited Companies

Limited Liability Partnerships

Sole proprietorships

Capital Requirements

The minimum statutory capital is US$1. You cannot hold bearer shares.

Shareholding

You must have at least one shareholder and at most 50. The shareholder can be a person or a corporate and a local or a foreigner. The shareholder and director can be the same person.

Directorship

Only an individual of 18+ years can be a director. You can have as many local or foreign directors as you want. But at least one director must be a Singapore resident, citizen, or Employment Pass holder. The director must also not have any criminal records and must not be bankrupt.

Company Secretary

You must also have a company secretary, who is a Singapore resident. You must appoint such a secretary within six months of your company’s incorporation. A secretary cannot be a shareholder or a director.

Registered Office

You must have a registered office in the country. It must be a physical address and not just a PO Box. You must have this office to maintain records and registers and receive official correspondence.

Reporting

Singapore follows the Singapore Financial Reporting Standards (FRS), which are like the IFRS. So, you find fewer challenges in adapting to it. You must file your annual statements to the Inland Revenue Authority of Singapore (IRAS) and the Accounting and Corporate Regulatory Authority (ACRA).

Trusted Experts in Company Formation

FAME is a distinguished consulting services provider in Singapore company formation. Our advisors ensure you follow all the rules while setting up a company and operating it in the country. We help you with the entire procedure, including documentation and approvals. Our services in Singapore business setup ensure you are ethical, fair, and compliant in your operations in Singapore.

So, why wait? Get your dream of Singapore company formation fulfilled by contacting us. We’ll help you make the choices and fulfil the prerequisites before setting up a private limited company in Singapore. We also help you benefit from any of the following:

Corporate Income Tax Exemption Scheme
Partial Tax Exemption Scheme
Start-up Tax Exemption Scheme

Convert your business vision into reality in Singapore.