As Singapore continues to thrive as a global business hub, forward-thinking enterprises are looking to scale their commercial footprint in the country. As many as 9,000 Indian enterprises have expanded their operations in this dynamic hotspot of business. Besides benefitting from the conducive business environment in the country, the Singapore company incorporation process is easy.
In this edition, we will discuss some strategic considerations for global enterprises before venturing into company formation in Singapore. We have comprehensively evaluated the regulatory and legal aspects in Singapore, along with the prerequisites for forming a company in the country. Along with these, we have comprehensively discussed the tax obligations and priorities like access to talent.
The Legal and Regulatory Landscape in Singapore
- Monetary Authority of Singapore (MAS): MAS is the apex body overseeing financial services in the country as well as its central bank. MAS plays a pivotal role in regulatory oversight.
- Inland Revenue Authority of Singapore (IRAS): IRAS governs all tax-related matters in the country, serving as the national tax administrator.
- Accounting and Corporate Regulatory Authority (ACRA): ACRA serves as the national regulator for business entities, ensuring compliance and transparency.
- Singapore Exchange (SGX): SGX is the stock exchange of Singapore, which oversees the regulatory aspects related to public listings.
Essential Requirements Before Incorporating a Company in Singapore
As a business owner, you might be wondering how to set up a local company in Singapore.
Before incorporating a company in Singapore, businesses need to get themselves registered with the ACRA. Here’s the step-by-step process.
- The first stage involves choosing and submitting a unique name for your business. Business owners can choose from private limited companies, public companies, and unlimited companies, among other structures.
- The next step requires the company to appoint at least one director and secretary each. This is a mandatory step for every registered company in Singapore.
- One of the key benefits for foreign enterprises expanding to Singapore is that the country doesn’t impose any limitations on foreign capital limits. The minimum paid-up capital for a private limited company stands at S$1 for both domestic and foreign entities.
- Businesses also need a registered office address in Singapore which the public can access during business hours.
- Businesses are also required to register at least one principal business activity with ACRA, with the provision to declare up to two primary activities in most cases.
Guide to Incorporating Your Business in Singapore: Essential Checklist
Tax Benefits and Obligations for Businesses in Singapore
- Territorial basis: Here, taxation applies to income sourced from within the country.
- Remittance basis: Income generated outside the country will be taxed only upon receipt within Singapore unless exempted.
In case the income is generated from a country outside Singapore like foreign entities or other branches, it will be taxed at 17% on the chargeable income. This norm works unless the business is granted a relief under the Economic Expansion Incentives Act or other applicable concessions.
Different types of taxes like income tax, GST, stamp duty, and withholding tax are levied as a part of the tax ecosystem in Singapore. All these taxes are charged at different rates.
Accessing Talent Pool in Singapore
- Employment Pass for managers, professionals, and executives meeting certain competency and salary criteria
- Overseas Network and Expertise Pass for highly skilled individuals or high-salary professionals
- EntrePass for investors establishing their ventures in the country
- S Pass for mid-level skilled workers
- Work Permit for foreign workers in particular sectors
Professional Assistance to Register a Private Company in Singapore
While forward-thinking ventures look to expand their operations in Singapore, navigating through the legal and tax complexities is challenging. The IMC Group continues to be your trusted partner as you brace up to register private limited company Singapore. With professionals on your side during the crucial process of company incorporation, you can confidently expand your venture to the dynamic business ecosystem in Singapore.