Company incorporation in Singapore is a relatively simple process regulated by the Accounting and Corporate Regulatory Authority of Singapore (ACRA). As per the World Bank’s Doing Business 2020 Report, Singapore ranked 2nd in the world (Score: 86.2 out of 100) for doing business, with New Zealand leading the space (Score: 86.8 out of 100). No doubt, why a Singapore Company can do wonders to flourish your business! However, before expanding your business to the Singaporean space, it’s always recommended to be well-versed with the procedural and compliance aspects of company registration in Singapore.
Company Incorporation in Singapore can be done by the following persons:
3) Company Secretary: The company shall appoint a company secretary, who is a natural person and resident in Singapore, within 6 months of its incorporation.
4) Shareholders: There shall be a minimum of 1 and a maximum of 50 shareholders for a Private Limited Company in Singapore. They can be individuals as well as corporate entities.
Following is the procedure to incorporate a company in Singapore:
1) Name Approval: The name proposed for the company shall be approved by the ACRA through an online procedure. The basic requirements while deciding on the name of the company are:
2) Documents: Following the name approval, specified documents, in English language or translated into the English Language, shall be required for the company registration in Singapore:
3) Registration with ACRA
ACRA is the Registrar of Companies in Singapore. Once all the documentation part is ready, the application for registration can be done online. The period within which the registration can be granted varies on a case-to-case basis and is based on the need for the involvement of other governmental agencies.
Tax Rate: Flat 17%
Companies, whether resident or non-resident, shall be levied corporate tax as follows:
However, the following tax exemption has been granted to the companies as follows:
1) Partial Tax Exemption
(Applicability: For companies from YA2020)
Chargeable Income (In S$) | Percentage of Income exempt from tax (In %) | Amount of Exempt Income (In S$) |
First 10,000 | 75% | 7500 |
Next 190,000 | 50% | 95,000 |
TOTAL 200,000 | - | 102,500 |
2) 3 Year Start-up Tax Exemption
(Applicability: New Start-up Companies where any of the first 3 Yas of the company falls in/after YA 2020)
Chargeable Income (In S$) | Percentage of Income exempt from tax (In %) | Amount of Exempt Income (In S$) |
First 100,000 | 75% | 75,000 |
Next 100,000 | 50% | 50,000 |
TOTAL 200,000 | - | 125,000 |
Bottom Line
Singapore is among the only few countries in the Asian region with a high-grade infrastructure, socio-economic stability, and a supportive tax system. Having entered various agreements with international communities, including more than 20 Free Trade Agreements (FTAs) and more than 75 Double Taxation Avoidance Agreements (DTAAs), the Singapore Government has, by far, been successful in providing a conducive and supportive business environment. If you require further consultation with respect to opening or expanding your business in Singapore territory, feel free to contact the ASC group.
Leave a Reply
Your email address will not be published. Required fields are marked *