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Singapore company registration

DOING BUSINESS IN SINGAPORE IN 2017

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 LLCLLP
Best use of company?All purposesTrading/ holdingClose a customerGlobal tradingProfessional services
How soon can you invoice Clients\sign sales contracts?1 week1 week1 week1 week1 week
How soon can you hire staff?1 week1 week1 week1 week1 week
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week
Travel required for business setup?NoNoNoNoNo
Travel required for bank account opening?NoNoNoNoNo
Corporate tax rate on annual net profits?17%0%17%17%0%
Effective tax rate on US$500,000?10%0%10%10%0%
Legally tax exempt if properly structured?NoYesNoNoYes
Government grants available?YesNoYesYesYes
Resident director/partner/manager required?YesYesYesYesYes
Minimum paid up share capital?US$1US$1US$1US$1US$1
Can bid for Government contracts?YesNoYesYesNo
Corporate bank account location?DBS SingaporeSwitzerlandOCBC SingaporeUOB SingaporeDBS Singapore
Can secure trade finance?YesNoYesYesNo
Limited liability entity?YesYesYesYesYes
Average total engagement costs?US$6,980US$8,940US$11,560US$8,790US$6,980
Average total engagement period?9 weeks9 weeks14 weeks9 weeks9 weeks

See full table

Accounting and tax considerationsTax resident LLCTax exempt LLCFast solution LLCFree zone LLCLLP
Must file an annual tax return?YesYesYesYesNo
Access to double taxation treaties?YesNoYesYesYes
This entity enjoys Government incentives?YesNoYesYesYes
Company registrationTax resident LLCTax exempt LLCFast solution LLCFree zone LLCLLP
Minimum number of shareholders/partners?11112
Maximum shareholding for foreigners?11111
Minimum number of directors/managers?11111
Minimum statutory paid up share capital?US$1US$1US$1US$1US$1
Shelf companies available?YesYesYesNoNo
Time to incorporate a new entity?1 week1 week1 week1 week1 week
Can easily convert to a PLC?YesNoYesNoNo
Public register of shareholders and directors?YesYesYesYesYes
Can have preference shareholders?YesYesNoNoNo
Business considerationsTax resident LLCTax exempt LLCFast solution LLCFree zone LLCLLP
Can invoice customers in your company name?YesYesYesYesYes
Restrictions on nature of business activitiesNoYesNoYesNo
Company can hire local staff?YesNoYesYesYes
Maximum number of staff allowed?No limitNo limitNo limitNo limitNo limit
Good entity for trademark registration?YesYesYesYesNo
Can secure an import and export license?YesNoYesYesYes

Can be wholly foreign owned?YesYesYesYesYes
Government approval required for foreign owners?NoNoNoNoNo
Temporary physical office solutions available?YesYesYesYesYes
You need a local resident as bank signatory?NoNoNoNoNo
GST payable on sales to local customers?7%0%7%0%7%
Withholding tax on payments to shareholders?0%0%0%0%0%
Group HQ tax incentives?YesNoYesYesNo
Must file annual financial statements?YesYesYesYesNo
Must appoint an auditor?NoNoNoNoNo
Withholding tax on payments to parent company?0%0%0%0%0%
Monthly GST reporting to the Government?YesNoYesYesYes
Dividends received are legally tax exempt?YesYesYesYesYes
Security deposit to be kept with Government?NoNoNoNoNo
Must sign an office lease agreement?NoNoNoNoNo
shareholders and directors documents to be attested?NoNoNoNoNo
Foreign director needs a tax number?NoNoNoNoNo
Foreign director needs a residence visa?NoNoNoNoNo
shareholders and directors documents to be translated?NoNoNoNoNo
The entity will likely be regulated by?ACRAACRAACRAACRAACRA
Sponsorship by a local citizen required?NoNoNoNoNo
Expatriate to local staff ratio?NoneNoneNoneNoneNone
Company can rent local office space?YesNoYesYesYes
Can secure residence visa for business owner?YesNoYesYesYes

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

Government incentives
FAQ

Similar tax exempt solutions
pdf singapore guide
Singapore or Hong Kong
Client case study

Press the link headings below to read detailed, relevant, up to date information on how to do business in Singapore.

  • 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 can 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 6th best jurisdiction in the world for “starting a business” in the 2017 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;
      • Resident companies can enjoy a tax exemption of 75% on the first SG$10,000 of their income, and further 50% on the next SG$290,000, a total of SG$152,500. Taxable profit over SG$300,000 will be taxed at a fixed rate of 17%, the second lowest 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 second-best jurisdiction in the world for “Doing Business” by the World Bank in its 2017 Doing Business Report.

    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(Back to Top)

    • Singapore company registration is a good way to invoice international customers through a reputable trading entity, while minimize local corporate taxation obligations;
    • Business registration in Singapore also enables our Clients to open local accounts with Singapore banks, which are increasingly reluctant to accept offshore corporate customers.

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