Singapore offers a business-friendly environment with tax advantages and government support for start-ups. Its proximity to Asia’s population of 4.68 billion people provides an ideal market for customers, talents, partners and investors.
The first step in establishing a company in Singapore is choosing a name that is unique and that no other entity has already claimed. A professional firm can help with this process.
Easy to set up
The process of registering a business in Singapore is relatively straightforward, provided the company meets all the requirements. You can register your company as a private limited company or an LLP, both of which provide a separate legal entity from their owners and shareholders. The most common choice is a private limited company because it offers the best level of protection.
A good professional firm will help you prepare the required documents for company registration in Singapore. These documents include the company constitution, formerly known as the memorandum and articles of association. The constitution is a set of rules that governs the company’s internal affairs and how it will conduct business.
Other important documents for registration in Singapore include identification documents and proof of address. You also need to submit an estimated annual turnover if you want your company to be registered for GST (value-added tax). This can save you a lot of money in the long run.
No limit on foreign ownership
Unlike other countries, Singapore doesn’t limit foreign ownership when registering a company. In fact, a foreign company can have 100% shareholding in a private limited company if it meets certain conditions. In addition, foreign directors and shareholders are allowed to be incorporated into the company.
Moreover, foreign companies can also set up a subsidiary or representative office in Singapore. These offices can be run by a foreign individual or corporation, and they are separate legal entities from the parent company. This allows them to carry out activities in Singapore, while settling any debts and liabilities that they incur.
Many foreign companies have already taken advantage of this flexible policy. They have relocated their headquarters to Singapore, where they can benefit from a robust IP protection system, a vibrant start-up ecosystem, and favorable funding and corporate taxation policies. In addition, the Singapore government encourages these companies to expand their operations through grants and incentives. These factors have made Singapore a popular destination for companies looking to establish their headquarters in Asia.
Government support
The Singapore government offers a wide range of grants and other incentives to help entrepreneurs and businesses thrive. It also has one of the most transparent and efficient regulatory frameworks in the world. This has enabled it to rank number one in the World Bank’s Ease of Doing Business report for nine consecutive years.
The Enterprise Singapore agency (formerly SPRING and International Enterprise) renders support to local and international startups through a variety of programs. These include the Startup SG Tech grant and EDB’s Global Trader Programme ’GTP’, International Headquarters Programme ’IHP’, and Regional Headquarters Programme ’RHP’.
The Productivity Solutions Grant (PSG) is another grant that supports companies by subsidizing their equipment and technology costs. Other grants are the Grow Digital fund, which helps SMEs develop B2B and B2C e-commerce platforms that allow them to reach overseas markets. The government also offers a dollar-matching scheme for start-ups that receive private capital from investors. This is an important incentive for small-and-medium enterprises, which are the backbone of the economy in Singapore.
Tax advantages
Singapore offers tax advantages that make it one of the most business-friendly countries in Asia. For example, new companies can earn up to $200,000 in profits tax-free during their first three financial years. The country’s corporate tax rate is also lower than that of other developed regional economies.
In addition, the government is committed to intellectual property protection and has an incentive programme for foreign investors. Investors can choose from a variety of business structures, including a branch office or subsidiary. Those entering Asia for the first time can consider setting up a representative office, while those with a long-term commitment may want to establish a Singapore-based holding company.
While sole-proprietorships and partnerships can be established with relative ease, they come with the risk that the owner will bear unlimited liability for debts incurred by the entity. On the other hand, a limited company provides a legal separation that protects its shareholders from liabilities beyond their own capital contributions.setting up a company in Singapore