Willing to Register A Company in Singapore?

Posted by Enterslice on August 22nd, 2018

Singapore Regime

Singapore is a prime location to set up a business because of its location being situated in the middle of Southeast Asia, allowing them access to an Asian market and less commuting hours to nearby areas through the flight. In order to put a business, the company is required to be registered; the most suitable format shall be registration of a private company in Singapore. Private company incorporation in Singapore will provide shareholders protection from debts and the directors shall have limited liability in cases of financial distress if any occurs in the company. Singapore companies act governs the incorporation of a private company in Singapore. Singapore is also favorable with regard to the double Tax Agreements with India; also one can enjoy Singapore tax resident status, tax exemption schemes and tax incentives, also there is age cap to be a director of such company, it’s simply 18 years old or above is allowed to register Singapore Company.

What will be the company incorporation procedure in Singapore?

Company Incorporation procedure in Singapore is as follows

1. Name approval application

While applying for name one should keep in mind that the use of words such as law, media, bank, and finance will be scrutinized more and it will take more time for name approval. Hence one should avoid similar to an existing company’s name, trademark infringements and obscene words.

2. Application along with the name approval:

After the name approval by Registrar of Companies, incorporation application and documents will be processed in a few hours. However only in certain cases where the application has been received from such countries that require more scrutiny is delayed.

3. Issuance of company incorporation certificate (COI):

The Company Registrar sends the COI through the registered email containing the certificate and Company Registration Number. However, if a physical copy is required one can get on the payment of S fee.

4. Open an account for the company:

One needs to apply for a corporate account for the company.

5. Obtain the Business Licenses:

Depending on the type of business say Restaurants, Educational Institutes, Travel Agencies, Financial Services, Import/Export of Goods, Employment Agency one is engaged into there is a requirement of the special license.

6. Goods and Service Tax (GST) Registration:

GST registration is required only when the annual revenue of a company will exceed S million.
The rate at which GST is charged on exceeding the above limit -Additional 7% for the goods and services

However, while applying for company registration in Singapore one should keep in mind the following prerequisites:

1. Directors

There should be at least one Resident Director who can be following:
a) a citizen,
b) Permanent resident, or
c) a person with a valid employment or dependent pass.

Note following:
a) The appointing director must not have any criminal record and record of bankruptcy.
b) However, unlike Indian laws directors need not be the shareholder in a company.
c) 100% foreign ownership is allowed.

2. Shareholders

a) Minimum shareholder:-One.
b) Maximum shareholder: - Fifty.
c) Shareholder type: - They can be individuals (Foreign /local), companies (Foreign /local),
d) Exempt companies from Audit on fulfilling the requirements of a small company: - A private company with a maximum 20 shareholders.However the corporations are not required to hold either directly or indirectly any beneficial interest in such companies.

3. Appointment of a Company Secretary (Section 171 of the Singapore Companies Act):

The Company Secretary is required to be appointed within six months of incorporation and he/she should be a natural person.

4. Paid-up Capital

The minimum paid up capital requirement is that of S.

5. Registered Address

It should be of local business address whether residential or commercial but should not be a post office.

6. Taxation

India has an agreement with Singapore of double taxation agreement, hence draws revenue to both the involved countries, as and when the case may be.

Singapore's tax exemptions and incentives:

1. For the first S0,000 of annual profits – maximum 8.5 % tax :
2. Above S0,000 of annual profits- pay flat 17 % thereafter
3. There are no dividend or capital gains taxes.

Apart from company registration in Singapore is required to comply with the applicable rules and regulations pursuant to Singapore Income Tax Act.

Be prepared with the following Documents/Information before Registration of a company in Singapore:
a. Company Names as applied and approved/ to be approved.
b. About the company a small description of activities to be undertaken by the company.
c. Shareholders details and all information about them.
d. Director’s details and all information about them.
e. Registered Address and proof of the same.
f. Appointed Company Secretary’s details.
g. The Memorandum and Articles of Association (MAA).

As self registration is not allowed in Singapore, one intending to register a private company in Singapore shall engage a company secretary or a consultancy expert in setting up business in Singapore should be hire.

Source by https://medium.com/@enterslice44/willing-to-register-a-company-in-singapore-5f9b1c8de744