In this review, we will describe the procedure of registering a company in Singapore. Singapore’s law has a number of features, that must be considered, when establishing a Singapore company.
One of the most popular legal forms is PLLC. A liability of all founders is limited to the amount of a capital, invested in the company. A debt of the enterprise will not affect a property of founders, as in a case with other forms. PLLC also provides for a profitable tax system. According to the Singapore Companies Act, anyone over the age of 18 can register a company in Singapore.
Main features of registering a company in Singapore:
- A unique name. Before starting the registration process, you must obtain a permission from the competent authority to use the desired company name.
- A director of the enterprise. At least one director is required to be a resident. To do this, a citizenship, a residence permit or a permanent residence permit in Singapore is suitable.
- Founders. Their number for PLLC is from 1 to 50.
- Founders can be both local and foreign individual/legal entities;
- 100% foreign ownership is allowed.
- A corporate secretary. According to the Singapore Companies Act, a corporate secretary must be appointed within six months from the date of registration. He/she can only be an individual, who lives in Singapore. It is not acceptable to appoint the director or a founder of this company as a corporate secretary.
- A paid capital. A minimum value is 1 SGD (0,72 USD; 0,67 Euro). There is a possibility of increasing a capital at any time after the incorporation of the company in Singapore. A capital may be in the form of various types of shares.
- Singapore company registration address. It is necessary to have a permanent company registration place. As a rule, it should be a commercial address, but in some cases a registration at the place of residence of the sole owner is possible.
- A taxation. Singapore has a number of corporate tax incentives for startups. No tax on dividends and a capital. A Singapore company is exempted from a corporate tax, if it conducts business outside this jurisdiction. Otherwise, a corporate tax is 17%.
Foreign investors cannot register a company in Singapore on their own. Non-residents can use services of registration agents, or a registration procedure can be initiated by one of the directors with a Singapore citizenship. IQ Decision specialists are familiar with all intricacies of this issue, and will help you to set up a company in Singapore with/without nominee services. A registration takes from 2 weeks, and includes the following steps:
- A reservation of a company name. An application for reserving a corporate name is filed with the registration authority. A name must differ from names of registered companies. It should also not infringe on trademark rights, or be obscene or offensive. A name is reserved as a general rule for a period of 60 days.
- Filing an application for registration. The applicant draws up the corporation form, signs all necessary documents and submits them to a registration agent for submitting an application to the competent authority.
- A review by the competent authority of the application for registration.
- Obtaining a certificate of incorporation. The applicant receives a certificate, confirming the incorporation, and containing the company registration number. A certificate is issued in the electronic form.
- Opening a bank account in Singapore. Numerous banks, providing services for opening a corporate account, are located in Singapore. Among them there are banks, that do not require a physical presence. IQ Decision lawyers assist clients in opening a corporate account with banks of Singapore. It should be noted, that it is possible to connect VisaNet to an account with a bank in Singapore.
- Obtaining licenses in Singapore. Some business activities are licensed in this jurisdiction. For example, a license is required for a business in the field of financial services, travel agencies, import/export of goods.
- Registering a Singapore company with a tax authority. In the event, that the annual turnover of your business reaches 1 million SGD, you must register as a VAT payer. A VAT in Singapore is 7%.
If you want to open a commercial enterprise in Singapore, or decide to buy an existing company in Singapore, IQ Decision lawyers will provide you with comprehensive advice.
The information outlined in the article is actual at the time of its publication.
Please refer to our specialists for checking possible solutions for your business.
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