Thousands of international companies are gravitating towards Singapore due to the many incentives that the government offers. Based on a recent study, Singapore is among the top-rated countries to do business in, has the most comprehensive intellectual property protection regulations, and it is rated the best foreign investment destination in Asia.
Tax incentives also motivate international companies to do business in the country. Some of the incentives and exemptions that you will enjoy in the country include:
- You will be obligated to pay no more that 8.5% tax on the first S$300,000 annual profits and no more than 17% the consequent years
- Say goodbye to dividends and capital gain taxes
Here is a brief overview of the minimum requirements that are required to when incorporating a private limited company in the Singapore.
Unlike in other countries, 100% ownership of your business can be owned by business associates who are not citizens of Singapore. Though not mandatory, the firm assisting you to register your business can act as a nominated shareholder in the company.
2# One Local Director
According to the current company incorporation regulation, one of the company directors has to be a citizen of Singapore.
3# Company Secretary
All private limited companies operating in Singapore are required to appoint a citizen of Singapore as the company secretary.
4# Minimum Share Capital
For a Singapore company incorporation process to be a success, the minimum share capital requirement is S$1. However, it is important to note that some niches require high share capital than others based on their respective regulations.
5# Physical Address in the Country
The company needs to have a local address in the country that will be used for official purposes. For instance, the local address has to be included in all official documents such as contract agreement forms and employment forms.
How Much It Costs To Get A New Company Going
Let us proceed and now look at the average company incorporation costs.
- Initial Incorporation: S$500 – S$2,000. This amount covers name reservation, company seal, preparation and filing of the incorporation documents.
- Required Annual Filing: S$500 – S$2,500. This cost covers annual return filing with the company registrar, the submission of the estimated income report, and final tax return filing with the tax authority.
Note that the above figures are meant to give you a realistic picture of the cost of incorporating a company in the country. The actual numbers may vary from one service provider to another, and so it is recommended to ask for a quote from your preferred company registration service provider to prepare a precise budget.