Singapore company registration guide

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Singapore company registration

DOING BUSINESS IN SINGAPORE


Since 2003, Healy Consultants Group PLC assists our Clients with i) business registration ii) regulatory licensing iii) business banking iv) immigration visas and staff recruitment strategies and v) office rental solutions.

SummaryTax resident LLCTax exempt LLCFast solution LLCFree zone LLCPLCLimited PartnershipRepresentative officeBranch officeTrust
Best use of company?All purposesTrading/ holdingClose a customerGlobal tradingSGX listingProfessional
services
Marketing &
research
Consolidate
losses
Tax planning
How soon can you invoice Clients\sign sales contracts?1 week1 week1 week1 week1 week1 week1 week1 weekNo
How soon can you hire staff?1 week1 week1 week1 week1 week1 week1 week1 weekNo
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week1 week1 week1 weekNo
Travel required for business setup?NoNoNoNoNoNoNoNoNo
Travel required for bank account opening?NoNoNoNoNoNoNoNoNo
Corporate tax rate on annual net profits?17%0%17%17%17%0%0%17%0%
Legally tax exempt if properly structured?NoYesNoNoNoYesYesNoYes
Government grants available?YesNoYesYesYesYesNoYesNo
Resident director/partner/manager required?YesYesYesYesYesYesYesYesNo
Minimum paid up share capital?US$1US$1US$1US$1US$1US$1US$1US$1None
Can bid for Government contracts?YesNoYesYesYesNoNoYesNo
Corporate bank account location?DBS SingaporeSwitzerlandOCBC SingaporeUOB SingaporeCitibank SingaporeDBS SingaporeSBI SingaporeSCB SingaporeOCBC Singapore
Can secure trade finance?YesNoYesYesYesNoNoYesNo
Limited liability entity?YesYesYesYesYesYesNoNoYes
Average total engagement costs?US$6,980US$8,940US$11,560US$8,970US$6,980US$6,980US$6,800US$8,750US$25,000
Average total engagement period?9 weeks9 weeks14 weeks9 weeks9 weeks9 weeks9 weeks9 weeks4 weeks

See full table

Accounting and tax considerationsTax resident LLCTax exempt LLCFast solution LLCFree zone LLCPLCLimited PartnershipRepresentative officeBranch officeTrust
Must file an annual tax return?YesYesYesYesYesNoNoYesNo
Access to double taxation treaties?YesNoYesYesYesYesNoYesNo
This entity enjoys Government incentives?YesNoYesYesYesYesNoYesNo
Company registrationTax resident LLCTax exempt LLCFast solution LLCFree zone LLCPLCLimited PartnershipRepresentative officeBranch officeTrust
Minimum number of shareholders/partners?111112Parent companyParent company0
Maximum shareholding for foreigners?11111111None
Minimum number of directors/managers?11111111None
Minimum statutorYesy paid up share capital?US$1US$1US$1US$1US$1US$1NoneNoneNone
Shelf companies available?YesYesYesNoYesNoNoNoNo
Time to incorporate a new entity?1 week1 week1 week1 week1 week1 week1 week1 weekNone
Can easily convert to a PLC?YesNoYesNoYesNoNoNoNo
Public register of shareholders and directors?YesYesYesYesYesYesYesYesNo
Can have preference shareholders?YesYesNoNoYesNoNoNoNo
Business considerationsTax resident LLCTax exempt LLCFast solution LLCFree zone LLCPLCLimited PartnershipRepresentative officeBranch officeTrust
Can invoice customers in your company name?YesYesYesYesYesYesYesYesNo
Restrictions on nature of business activitiesNoYesNoYesNoNoYesNoYes
Company can hire local staff?YesNoYesYesYesYesYesYesNo
Maximum number of staff allowed?No limitNo limitNo limitNo limitNo limitNo limitNo limitNo limitNone
Good entity for trademark registration?YesYesYesYesYesNoNoNoNo
Can secure an import and export license?YesNoYesYesYesYesNoYesNo

Other useful information 
What will be included in my customer sales invoice?(click link)
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average customs duties suffered?0
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)37
Minimum statutory annual salary?None
Average monthly US$ salary for local skilled employees?US$3,800
S$ deposit interest rate? (1 year average)0.004
US$ deposit interest rate? (1 year average)0.001
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?No
Quality of e-banking platform?Excellent
Crowd funding available in this country?Yes

Can be wholly foreign owned?YesYesYesYesYesYesYesYesYes
Government approval required for foreign owners?NoNoNoNoNoNoNoNoNo
Temporary physical office solutions available?YesYesYesYesYesYesYesYesNo
You need a local resident as bank signatory?NoNoNoNoNoNoNoNoNo
GST payable on sales to local customers?7%0%7%0%7%7%0%7%None
Withholding tax on payments to shareholders?0%0%0%0%0%0%0%0%None
Group HQ tax incentives?YesNoYesYesYesNoNoNoNone
Must file annual financial statements?YesYesYesYesYesNoNoYesNo
Must appoint an auditor?NoNoNoNoYesNoNoNoNo
Withholding tax on payments to parent company?0%0%0%0%0%0%0%0%None
Monthly GST reporting to the Government?YesNoYesYesYesYesNoYesNone
Dividends received are legally tax exempt?YesYesYesYesYesYesYesYesYes
Security deposit to be kept with Government?NoNoNoNoNoNoNoNoNo
Must sign an office lease agreement?NoNoNoNoNoNoNoNoNo
shareholders and directors documents to be attested?NoNoNoNoNoNoNoNoNo
Foreign director needs a tax number?NoNoNoNoNoNoNoNoNo
Foreign director needs a residence visa?NoNoNoNoNoNoNoNoNo
shareholders and directors documents to be translated?NoNoNoNoNoNoNoNoNo
The entity will likely be regulated by?ACRAACRAACRAACRAACRAACRAACRAACRANone
Sponsorship by a local citizen required?NoNoNoNoNoNoNoNoNo
Expatriate to local staff ratio?NoneNoneNoneNoneNoneNoneNoneNoneNone
Company can rent local office space?YesNoYesYesYesYesYesYesNo
Can secure residence visa for business owner?YesNoYesYesYesYesYesYesNo

How can a Singapore company help your business? – press this link!

Download your free Singapore company registration guideGet it now

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages of a Singapore LLC(Back to Top)

    Advantages of Singapore company registration

    Singapore corporate registration requirements and procedures

    1. It is easy for our Clients to setup a company in Singapore because:
      • A Singapore LLC can be incorporated within 1 week, with only 1 shareholder and 1 director. Also, there is no residency or nationality requirements for the shareholder;
      • The minimum paid up share capital for the new incorporated company be as low as US$1. Furthermore, there will be no need for our Client to travel to Singapore to complete the engagement;
      • As a result of the above, Singapore is positively ranked as the 10th best jurisdiction in the world for “starting a business” in the 2016 Doing Business Survey;
    2. A Singapore company is likely to enjoy certain tax advantages including:
      • If properly structured, a Singapore resident company will not suffer tax on i) international income ii) all forms of dividends and iii) capital gains;
      • For resident companies, the first three years’ net profits under S$100,000 are tax exempt. The next S$200,000 are taxed at 8.5%, and taxable profits over this amount pay corporate income tax of 17%, the second lowest rate in APAC;
      • Through its network of 76 double taxation treaties global withholding tax is minimized when extracting funds from international subsidiary companies;
      • Due to Singapore’s ASEAN membership, resident companies pay no import duties when trading with other ASEAN member nations;
      • Singapore Government i) offers a multitude of attractive government grants to new companies and ii) allows all tax returns to be submitted online;
      • To calculate your company’s annual corporate tax amount, please use the tax calculator on this IRAS webpage;
    3. Our Clients may also enjoy certain miscellaneous benefits including:
      • Singapore is the most politically stable country in Asia, boasting a reputable regulatory environment. Consequently, business registration in country is the perfect solution i) for signing regional contracts with customers and suppliers; and ii) for registering intellectual property;
      • Singapore boasts a highly skilled labour force with a literacy rate of over 96% and a computer literacy rate of 99%. Furthermore, since Singapore is the most proficient English-speaking country in Asia, international entrepreneurs find it easy to communicate with suppliers and Clients. Also, all official documents are written in English;
      • A Singapore company is perceived positively by customers, suppliers, investors and banks. Furthermore, a Singapore company can be listed on the SGX, ASX and NYSE;
      • Singapore is a paradise for high-net-worth entrepreneurs. With a strategic location for wealthy Asian entrepreneurs, the city is synonymous with luxury and is home to some of the biggest brands in the world, catering to its world-leading population of millionaires;
      • Singapore is ranked as the most innovative city in Asia for entrepreneurs, according to the Corporate Advisory Firm, Solidiance. Singapore’s high rating was thanks to its talented labour force, relaxed regulatory framework and excellent technological infrastructure;
    4. Lastly, Singapore is ranked as the best jurisdiction in the world for “Doing Business” by the World Bank in its 2016 Doing Business Survey;

    Disadvantages of Singapore company registration

    1. All resident firms must have at least one resident director, who can either be a citizen, permanent resident or work pass holder in the country. Furthermore, corporate directors are not allowed;
    2. As a services and export-based economy, Singapore’s growth is dependent on i) the health of the Chinese economy and ii) the health of the USA and EU economy;
    3. All companies must submit annual financial statements to the Inland Revenue Authority (IRAS). Healy Consultants assists our Clients to efficiently and effectively satisfy this annual statutory obligation;
    4. Singapore is an expensive city for a new business, with monthly average labor cost being US$2,600 and monthly average office rental being US$7 per square foot. Both rates are more than double the rates in neighboring Malaysia;
    5. Hiring foreign workers is difficult; the company will have to prove that local workers were not denied the work opportunity.

Healy Consultants’ video on registering a business in Singapore

Download the full Singapore country report here

Contact us

For additional information on our business registration services in Singapore, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
singapore business federation Singapore Ministry of Manpower (MOM) Institute of Singapore chartered accountant (ISCA) Institute of Singapore chartered accountant (ISCA) saicsa icsa - institute of chartered secretaries and administrators SIngapore exchange ltd - The Asian Gateway | SGX