Singapore surely seems like a green pasture for everyone who is thinking business. Its geographic location, international connectivity and transport infrastructure and business-friendly laws make it a great choice for various companies and also individuals who want to start their own dream business. Today, Singapore is touted as an Asian hub for various global industries, which include finance, communications and also shipping. It also acts as a centre for the oil industry and has done big investments in this field. Other than that, Singapore has ample research facilities into microelectronics, biomedicine and is hence a heaven for STEM professionals. In addition, Singapore also boasts of a regulatory framework, which supports business owners and people thinking of company formation in Singapore. Another important point is that this country offers a better standard of living for expats and that surely is a big way to attract them. Today, the world is becoming smaller with the use of additional communication channels and affordable transportation. The number of people who are ready to move out of their home country to start their own business, is increasing day by day.
As per the World Bank Report 2018, Singapore ranks at the 2nd position when it comes to ease of doing any business. This ranking is a big motivator to many entrepreneurs who are thinking of start-ups. And thus, Singapore keeps luring business owners company registration in Singapore from India.
Is this question of how you should go about registering a company in Singapore bothering you? Believe us on this; it’s is not at all a big thing. The process to register a new company in Singapore is very simple and streamlined. Even if you decide to register a company in Singapore from India, you can easily hire a good incorporation services provider to do the same for you.
You can decide for any business structure to register your enterprise depending on whether you are an individual or a corporation. The business structures you could opt from are:
- Private Limited Company (Pte Ltd)
- Sole Proprietorship
- Limited Liability Partnership (LLP)
- Subsidiary Company
- Branch Office
- Representative Office
How it works?
Singapore is the right choice to establish your dream business. Having said that, you should be ready with your unique business idea, detailed plans, campaigns for marketing your product or services, and required market surveys or research results. You must be sure of your targeted customers too.
Mostly, Indian entrepreneurs go for a company set up in Singapore to do their business in India. They usually consider registering a subsidiary company in India, which can utilize the cost-effective talent pool of professionals available here.
The subsidiary has to pay the dividends to its parent company based in Singapore. The good part is that the dividends earned are exempted from taxes according to the trade treaty done between India and Singapore.
Concessionary Tax Rates under GTP, RHQ and IHA Schemes
Singapore government has come up with many campaigns to lure and invite foreign investors and corporate. They offer many concessions to entrepreneurs who go in for company registration in Singapore. Many Indian companies also gain advantage out of these schemes after they relocate their head office to Singapore.
Some of the popular schemes are Global Trade Program (GTP), the International Headquarters Award (IHA), and Regional Headquarters Award (RHQ).
- RHQ scheme – Entrepreneurs get a tax rate of 15% on their income from some listed activities for consecutive three years. They are permitted to enjoy these concessionary benefits for additional two years, provided they meet some prescribed conditions
- International Headquarters Award (IHA) – If they qualify for IHA, they get even lower tax slabs of 10% or 5%. But, they have to exceed the criteria mentioned for the RHA by a huge margin
- The global trader programme (GTP) – This scheme offers incentives to entrepreneurs who have Singapore as their regional base. They get 10% or 5% concessionary tax slab on their qualifying income
Treaties are very conducive to Cross-Border Trade
Foreign Tax Credit Scheme (FTC)
Singapore Corporate Tax
The corporate tax in India ranges between 25%-29%. In addition to this, these businesses have to pay some other charges like cess and surcharges.
However, Singapore surely promises many advantages over India because its corporate tax lies between 0%-17%. This island nation also gives various tax incentives, exemption schemes and rebates, which lowers the tax paid by the Singapore companies to 8.5%-9%.
Another fact is that the Singapore government encourages start-ups and exempts their initial chargeable income of up to S$100,000. The existing companies also enjoy a rebate of 30% in the corporate tax. Besides that, the goods and services consumption in Singapore is taxed uniformly at 7%.
In addition, Singapore is a politically stable country with liberal taxes, strong communication networks, best-in-class infrastructure, and also dependable connectivity with other parts of the world through sea and air. Therefore, you should harbor no doubts when planning company formation in Singapore.
