Start Your New Business by Incorporating a Company in Singapore

Starting a new business is no less than riding a roller coaster. Apparently, fulfilling your dream of entrepreneurial career is an exhilarating experience, but the road to meet your goal is full of threats and challenges. However, you are likely to face very fewer challenges when you plan to start your business by incorporating a company in Singapore.

The nation’s jurisdiction is known for its transparent laws, pro-business policies and progressive tax regimes. Reiterating, the process of company incorporation Singapore is simple, fast and free of any red-tape and bureaucracy.

Company Incorporation Singapore

Singapore Company Registration: A Handy Guide

All companies based in Singapore must get registered with ACRA (Accounting & Corporate Regulatory Authority) before conducting any business activity. The entire process can be carried out online using an e-filing system called BizFile+. It takes hardly 1 to 3 days to complete the whole process of Singapore company registration unless your application needs to be reviewed by any external authority. The process is done undertaking two simple steps: 1) Company Name Approval and 2) Company Registration with ACRA.

A Few Fast Facts:

  • The company name approval can be done within an hour. The proposed name has to be unique, meaningful and decent. The approved name can be reserved for the period of 60 days.
  • One local director, at least one shareholder, one company secretary, registered office address, minimum SGD 1 paid-up capital- are the minimum requirements one must meet before registering a company in Singapore.
  • A SingPass ID is needed to login into BizFile+ portal of ACRA. Every local Singaporean possesses this ID. The Foreign entrepreneur must take the assistance of a third party incorporation firm to get access to BizFile+.
  • A copy of passport, overseas residential address proof, bank reference letter, personal and business profile- are the documents required at the time of registration.
  • An email notification from ACRA that includes the company registration number is treated as the official Certificate of Incorporation in Singapore.

Tax Benefits for Start-up Business in Singapore:

One of the perks of incorporating a company in Singapore is that locally incorporated companies enjoy attractive tax exemptions and incentives. The nation has adopted a single-tier corporate income tax system wherein dividend earned by the stakeholder are tax-free. There is no capital gains tax. The headline corporate tax rate of Singapore is capped at 17%, which is relatively lower than other jurisdictions.

Surprisingly, a newly incorporated company in Singapore can enjoy 0% tax on the first S$100K taxable income for first three years. For that, the company must meet certain conditions as stated below:

The company

  • must be incorporated in Singapore
  • must be a local tax resident in Singapore
  • has no more than 20 shareholders of which at least one is holding a minimum 10% of shares.

All Singapore resident companies are eligible to enjoy partial tax exemption. The companies earning an annual taxable income of up to S$300,000 is entitled to pay 8.5% corporate tax rate. The taxable income above S$300,000 will be charged 17%.

As per the Singapore Budget 2016, every Singapore-based company can claim a one-time 50% of corporate income tax rebate on tax payable for YA 2016–2017, the cap for the rebate will be S$20,000 per year.

Apart from having favorable business policies and tax benefits, the entrepreneurs in Singapore have another advantage i.e. easy access to funding of government and private investors. There is a slew of government schemes meant for start-up businesses.

The attributes like easy access to money, world-famed company incorporation process and abundance of tax benefits, are driving more and more enthusiastic individuals to incorporate a company in Singapore.