Singapore is fast becoming a business city of choice due to its excellent business infrastructure, political stability, and close economic ties with many of the world’s leading economies.
Foreign companies & entrepreneurs that are keen on exploring the viability of doing business in Singapore will be required to incorporate a Singapore company as legal entities with the Accounting and Corporate Regulatory Authority (ACRA), Singapore.
- Minimum 1 shareholder; The shareholder can be an individual or a corporate and can be of any nationality or jurisdiction.Minimum 1 director; All directors must be individual persons and at least 1 director must be a Singapore citizen, Permanent Resident or anEmployment Pass holder that is sponsored by the proposed company.
- Minimum 1 share to be issued; There is no minimum capital. Hence, the client can decide the amount of capital (which can be in any currency) that they require.
- Minimum 1 company secretary; Company secretary must be individuals and at least 1 company secretary must be a Singapore citizen or Permanent Resident. Must have a registered office in Singapore; This is usually the office address of the resident company secretary.
- Must appoint an external Auditor and have the annual financial statements audited, unless it is able to meet certain conditions. Annual returns, AGM documents, annual financial statements and annual tax returns must be prepared and lodged with the Singapore authority.
Minimum one individual director required who must be an ordinary resident of Singapore i.e. the person should be one of the following: – Singapore Citizen, Singapore Permanent Resident or Singapore Employment Pass / EntrePass / Dependant Pass holder.
Shareholders of a Singapore Company may be corporations or individuals and can own 100% of its companies shares.
The Company Secretary has to be Singapore ordinarily resident and the sole shareholder and director cannot act as Company Secretary.
Tax exemptions and concessions
- Zero tax for new Singapore companies on the first 100K annual profits for the first 3 years.
- All companies to enjoy approx. 9% corporate tax rate for profits up to 300K
- Overall company tax rate lowered to flat 17%
- Singapore does not levy a withholding tax on dividends. Interest, royalties or rental of equipment payments to non-residents are subjects to a 15% withholding tax.
- Dividends paid by a Singapore Private Limited Company are tax exempt.
- Singapore has an extensive double taxation avoidance treaty network with more than 40 countries including Australia, Belgium, Canada, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mauritius, the Netherlands, New Zealand, People’s Republic of China, Philippines, Thailand, Switzerland and the United Kingdom.