Singapore company registration

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Singapore Company Registration

For over a decade, Healy Consultants has been efficiently and effectively assisting our Clients with i) business registration ii) business licensing iii) Singapore business banking solutions iv) visa options and staff recruitment strategies and v) workspace rental solutions.

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

  • Advantages and Disadvantages

    Advantages of Singapore company registration

      Singapore corporate registration requirements and procedures
    1. A Singapore limited liability company is incorporated within one week, requiring only one shareholder and one director of any nationality. The minimum paid up share capital is US$1 and our Clients do not travel to complete the engagement;
    2. If properly structured by Healy Consultants, a Singapore resident company will not suffer tax on i) international income ii) all forms of dividends and iii) capital gains;
    3. Through its network of 75 double taxation treaties global withholding tax is minimized when extracting funds from international subsidiary companies;
    4. A Singapore company looks good to customers, suppliers, investors and banks and can be listed on the SGX or ASX or NYSE;
    5. Singapore boasts fair and reasonable transfer pricing rules;
    6. To support group reporting, Healy Consultants will timely and efficiently prepare audited or unaudited consolidated financial statements;
    7. 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;
    8. Because Singapore is a member of ASEAN, companies incorporated here pay no import duty when trading with other ASEAN member countries, including Indonesia, Malaysia, the Philippines, Thailand, Brunei, Burma, Cambodia, Laos and Vietnam;
    9. Singapore is the most politically stable country in Asia, boasting a reputable regulatory environment. Consequently, business registration in Singapore is the perfect solution for signing regional contracts with customers and suppliers or for registering intellectual property;
    10. 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;
    11. Singapore boasts a highly skilled labour force with a literacy rate of over 96% and a computer literacy rate of 99%. Furthermore, most skilled employees are bilingual in English and either Mandarin or Malay;
    12. Starting a business in Singapore is easy with minimal corruption, minimal business restrictions, and low bureaucracy. A foreign owned company can invest in every business sector without restriction. This is why Singapore boasts the first place ranking on the 2015 world doing business survey, measuring ease of starting a business, paying taxes and getting credit, amongst other factors;
    13. 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;
    14. The Singapore Government i) offers a multitude of attractive government grants to new companies and ii) allows all tax returns to be submitted online.
    Interview with Aidan Healy on registering a business in Singapore

    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.
  • Best uses for a Singapore company

    1. Holding company or regional headquarters: Singapore is an ideal location in which to establish your company’s head office in the Asia Pacific region. The country’s highly skilled labour force, excellent infrastructure and business-friendly environment have made Singapore the jurisdiction from which a great number of blue-chip firms manage their Asian operations. Factors in favour of registering your APAC headquarters in Singapore include:
      • Singapore’s territorial taxation rules mean that income from i) foreign subsidiaries ii) non-Singaporean operations around the world and iii) capital gains are legally tax exempt;
      • Through Singapore’s network of 75 double taxation treaties, withholding tax is minimized when receiving profits from international subsidiaries and thereby allowing our Clients to avoid double taxation;
      • Thanks to Singapore’s bilingual education system and its focus on English, most skilled Singaporean workers are fluent in English and either Mandarin or Malay. This means that they can communicate effectively with Clients, suppliers and subsidiaries in Asia and around the world;
      • The Singaporean government provides a tax incentive for companies registering their headquarters in the country, reducing the headline rate of tax to 15% for up to 5 years under the headquarters programme; and
      • Singapore is a developed financial hub, increasing the access to capital for businesses established in the country.

    2. Setting up an international trading company in Singapore means that your business will benefit from:
      • Legal tax exemption on international sales if properly structured;
      • The strength of Singapore’s reputation as a business and financial hub when dealing with Clients, service providers and sources of finance; and
      • Singapore’s status as a major shipping and logistics centre, meaning that distribution is more easily managed here than in many competing jurisdictions.
    3. Following Singapore business registration, Healy Consultants can open a supporting corporate bank account in every country in the world including USA, Germany, Dubai, South Africa, Brazil, Australia, Japan, eliminating the need to register local companies on each continent;
    4. Singaporean companies can be supported by a low cost multi-currency merchant account for e-commerce sales;
    5. Global withholding tax rates are minimized through the 75 double taxation treaties signed by Singapore. Thus extracting funds from international Clients and subsidiaries can be done more efficiently than in many other jurisdictions. Refer to this table to view how global withholding tax rates are minimized;
    6. Singapore is a great import and export hub because: i) it boasts the world’s 2nd busiest port and the world’s 12th busiest cargo airport ii) it hosts a huge number of international trading companies and supporting banks, a top source of trade finance and iii) it attracts the world’s leading freight forwarders, shipping companies and insurance companies.
  • Similar low tax jurisdictions

Company registration

  • Time to incorporate: One week
  • Cost to set up: US$7,980
  • Minimum capital: 0 (no par value)
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: Yes
  • Resident director: Yes

Key facts

  • Corporate tax rate: 17%
  • Corporate tax base: Territorial
  • Shelf companies: Available
  • Main company type: LLC

Frequently asked questions

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:
singapore business federation acra - accounting and corporate regulatory authority 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