Singapore’s business tax has contributed a major part in Singapore’s worldwide popularity as a pro-business nation.
The business tax states that newly launched companies are to pay No tax on the first S$ 100,000 of chargeable income for the first three consecutive years. In addition, a 50 % exemption is offered on the next S$ 200,000 of the chargeable income. This has been a major reason Singapore was ranked first in the list of World’s Easiest Place to do Business given by World Bank, Ease of Working Report, 2010. For this factor, foreign people and business are motivated to form a Singapore business.
For business entrepreneurs who are searching for help, you must check the fundamental requirements below:
Minimum 1 Shareholder + 1 Citizen Director + 1 Company Secretary
Minimum initial paid-up share capital is S$ 1.
The Singapore Business needs to have a Singapore registered workplace address.
For business entrepreneurs who are in doubt of what kind of company structure to utilize, below are a few brief descriptions for each company structure:.
A branch office is an extension of its foreign parent company and is not a separate legal entity. Liabilities reach the parent company.
A subsidiary is a Singapore private limited company and is a different legal entity. Liability is restricted to the subsidiary and does not extend to the foreign parent business.
Representative office (RO):
An RO has no legal status and is a temporary management office indicated for carrying out market research or co-coordinating activities. Liabilities reach the foreign parent company.
For foreign business entrepreneurs, here are some of the fundamental points that should be kept in mind:
Engage a Professional Practice:
Foreign corporations and individuals should engage an expert company that focuses on company incorporation in Singapore to set up a company.
Work Visa for Foreign Individuals:
Foreign people who wish to relocate to run their new Singapore Company operations have two kinds of work pass to pick from.
Work Visa for Foreign Corporation Management Staff:
Foreign Corporations who plan to transfer their management personnel to Singapore to run their new Singapore company setup need to apply for Work Pass.
Foreign Individuals/Corporation Not Relocating to Singapore:
Foreign Individuals and corporations that do not plan to move to Singapore to operate the company must select a Singapore resident director in accordance with the Singapore Companies Act.
Now that you have fundamental info on Singapore company incorporation, you can now continue by working with an authorized company registration firm that will certainly help facilitate all issues on incorporation.