Registering a company in Singapore is an option for entrepreneurs who want to take a firm business position in the Asian region.
Singapore is considered one of the world’s largest financial centers and an important trade center due to its position at the crossroads of maritime trade routes. The Port of Singapore is one of the largest and busiest in the world, providing efficient logistics and cargo handling for regional and global markets.
Singapore is known for its efficient transportation system and innovative technologies in all areas of life. Political stability plays an important role in the successful development of a country, providing predictability for business and guarantees for investors. Registering a company in Singapore provides access to tax benefits.
Foreign entrepreneurs prefer to set up a company in Singapore because of its low corruption, transparent legal system and availability of many educational programs, which help develop basic skills required for modern business needs.
Startups in Singapore receive support in the form of grants, infrastructure initiatives and tax incentives. Government institutions and agencies such as the Agency for Science, Technology and Research (A*STAR), the National Technology Agency (NTA) play an important role in supporting startups by providing access to innovative technologies, incubators and accelerators.
How to open a company in Singapore?
The registration of a company in Singapore by a non-resident is possible through the types of business organization as a private or public company that limits the liability of its shareholders, a partnership, or a branch. The Private Limited Company is the most common form of business because of its flexibility and limited liability for founders.
The management of an LTD in Singapore can be delegated to a director, who can be a citizen of any country. To register a Singapore LTD company, one founder is sufficient, who can also be a director of the company.
Business registration in Singapore – procedural steps
Opening a company in Singapore involves several important steps. First of all, you need to choose a company form that suits your business goals and priorities. Next stages:
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Registering a name that complies with local rules and regulations.
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Preparation of subject documents.
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Completing the application and submitting it (with documents) to ACRA.
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Payment of fees.
The process of registering a company in Singapore is usually fast and efficient thanks to ACRA’s electronic systems, which significantly speed up the processing of applications. If there are additional questions or documentation needs to be adjusted, additional time may be required to clarify the details.
Taxes in Singapore
The main tax aspects affecting business activity include:
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Income tax, which is 17%, which is one of the lowest levels in developed countries.
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Tax on dividends – 0%.
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GST (similar to VAT) – 9%. This tax is paid by companies when selling goods and services made in Singapore. Imported goods are also subject to GST, which is payable at the time of customs clearance. If a company sells domestically and its annual turnover exceeds SGD 1 million, registration as a GST payer is mandatory.
Launching a startup in Singapore allows you to receive tax benefits in the form of a tax reduction of up to 4.5% in the first 3 years of development if the income does not exceed 100 thousand SGD, and up to 8.5% if the income is less than 200 thousand SGD. Financial statements must be submitted annually by all companies. If the company does not carry out operational activities, it is necessary to submit a report with zero indicators. Large companies must undergo audits.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.