Singapore is now ranked as the easiest place to do business for local and international investors. The decision to register your business in Singapore is, therefore, the best you will ever make as an entrepreneur. However, all businesses must register as companies before beginning operations in Singapore.
Why Register Your Business in Singapore?
An entrepreneur has numerous options when setting up a business based on the rate of return, ease of doing business, and personal preferences. Singapore is inviting and rewarding to entrepreneurs for several reasons. Before looking at how to register a company in Singapore, here are reasons why it is worth doing business in the country.
- The easiest place to do business in the world- if you conduct your due diligence, it will take a maximum of 1 day to 2.5 days to begin operations in Singapore. Elsewhere in the world, it takes an average of 20 days. You also require paid-up capital of just $1 to begin operations.
- Friendly tax regime- start-ups enjoy a tax exception of up to $125,000 for the first three years and 102,000 tax-free company income for the fourth year. You also pay 17% corporate tax, one of the lowest in the market today.
- Supportive legal system- the government supports investors by safeguarding their capital whenever they invest in Singapore. You enjoy your intellectual property rights, fair legal system, and elaborate dispute resolution mechanism.
- Global talent- Singapore is ahead of Silicon Valley as the best start-up ecosystem. Beyond the bilingual workforce, it has the most competitive skills in the world. The community is also tech-minded, helping entrepreneurs to scale or use technology fast.
- World-Class infrastructure- Singapore tops many other countries for the provision of appropriate infrastructure for businesses to grow. From office space, warehouses, internet connectivity, international connectivity, and financial systems, Singapore gives you a headstart.
All these advantages are topped by a reasonable cost of living despite high living standards. Food is affordable, and rent will allow you to keep most of your income without lowering your quality of life. If you work with experts in starting a business in Singapore, you will enjoy a seamless and convenient experience.
Registering a Company in Singapore
The process of company registration in Singapore will depend on the type of business you intend to operate. However, there are basic requirements regardless of whether you are operating in the country or setting up an agency and the type of business you will be doing. Here is a short guide to setting up a company in Singapore.
Research the desired name and indicate the industry category you will be operating. It enables you to get a code that distinguishes you from other businesses in the sector. Appoint the company directors and assign them responsibilities. Consider the tax advantages of having local directors in your company. Choose a bank and an account through which your finances will be channeled. The choices you make will affect the efficiency of your operations and applicable taxes. You can consult expert company incorporation services Singapore agents to guide you on the best decision for your business.
Type of Company to Register in Singapore
Choose the type of company to register based on your operations, capital structure, and area of operation. Singapore makes provision for several types of companies. They include
- Limited Liability Company (LLC) – this type of company is independent from directors, giving leeway for the company to own properties and enter into contracts. Your liabilities will be limited to your share capital. You may operate as a Private Limited Company whose shares are not sold to the public and cannot exceed 50 shareholders. You may also choose an Exempt Private Limited Company with shareholding limited to 20 people, no corporate shareholding, and your annual revenue must be below $5 million.
- Public Company- the company, is limited by shares or guarantee. If you intend to have more than 50 shares, you will be operating as a public company.
- Sole Proprietorship- as the owner, you hold responsibility for any debts and enjoy all the profits.
- Partnership- a partnership may be a General Partnership, Limited Partnership, or Limited Liability partnership.
Each type of business will fit into a particular company model based on your operations, capital structure, and profit agreements. You should also consider whether you are offering services or selling goods because the companies are crafted for each category of business. Expert company registration agents will help you to choose the best entity for your business operations.
Which is the Best Type of Company for Foreigners in Singapore?
The law in Singapore is one of the friendliest for foreign investors coming from any country around the world. The law allows 100% foreign ownership, giving you full control over operations and profits. However, you must understand all the requirements during Singapore company registration to ensure that you pick an entity that suits your business model. The agent helps you to choose whether you will have a branch office, representative office, or be a subsidiary company.