Thinking of starting your new business? Below, we would like to share with you all you need to know about incorporating a company in Singapore.
1.Why incorporate a Singapore company?
There are many benefits to incorporate a company in Singapore. Below are some of the advantages:-
- Low corporate tax rates: about 8.5 percent up to $300K profits and a flat 17 percent thereafter. In addition, new corporations enjoy tax exemption on the first $100K of normal chargeable income for their first three consecutive years of operation.
- No dividend nor capital gains taxes in Singapore
- Government grants up to 80% provided for the purchase of technology like accounting software
- No auditing is required for privately-owned companies with revenue less than $5 million
2. Why choose a private limited company
There are many benefits to incorporate a private limited company. Below are just some of the advantages: –
Shareholders are not personally liable for debts and loses of company
Enjoy local company tax incentives and exemptions
3. Guide to select your Singapore Company Names
Before you can set up a company in Singapore, you must get the company names reserved. ACRA will refuse a proposed Company names if it is similar, identical or phonetically the same as a company or business already registered in Singapore company name list.
Contact Accounting Consultancy, our Incorporation specialists will be glad to assist you in checking and completing your Company name reservation and registration.
4. Can the company be 100% owned by a foreign individual or a foreign company
Yes, the Singapore Companies Act allows foreign individuals and/or corporations to own 100 percent of a Singapore Company.
However, a Singapore private limited company must have at least one director who is a resident of Singapore, i.e. a Singapore citizen, a Singapore permanent resident or a person who holds an Employment Pass with a residential address in Singapore.
The director must be at least 18 years of age, and must not be bankrupt or have been convicted of any previous crimes. Information about the directors appears on public records. Directors can also be shareholders and vice versa. If you do not have a local Singapore resident director to meet the requirements of the Singapore Companies Act, you can always engage Accounting Consultancy for our Nominee Director Service.
5. Are there any restrictions to the types of business activities
There are no restrictions on the types of business activities in which a Singapore company may engage. However, some business activities, such as travel agency, recruitment agency, financial services company, school or others special cases, require licenses from an approving authority before you can commence business.
6. Paid-up Capital – what does it mean?
The issued share capital must be paid up immediately upon incorporation into the corporate bank accounts. Paid-up capital is money paid in by shareholders to the company to purchase shares. These funds can be used for all company expenses, including paying off all company debts. There is no personal liability on an individual shareholder if the necessary amount for the subscribed shares is fully paid. In the event that this amount is not fully paid, the creditors can demand that the shareholder be personally responsible for the shortfall.
7. Can I start my business activities immediately after incorporation?
Yes, you can start your business activities immediately after incorporation. However, you may need to do some or all of the following before you can effectively run your business:-
- Open bank accounts.
- Obtain the relevant licenses (if required)
- Register for Goods & Services Tax (GST) if necessary. The registration of GST is not mandatory unless your annual turnover exceeds S$1 million. We can help you register for GST, if you so require.
- Decide on your company’s fiscal year end, which can be any date within 18 months from the date of incorporation of your company. It is recommended to keep it at 12 months to maximize the tax benefit.
- Set up and maintain your statutory records which comprises of :
– Up-to-date information on corporate officers.
– A list of the company’s shareholders, the number of shares everyone owns, and details of any share transfers if applicable.
– Resolutions and minutes from the corporation’s AGM meetings.
– Details about fixed or floating charges and debentures utilised to secure company loans.
You can appoint us as your Company Secretary to maintain your Statutory Records and remind you of all deadlines.
- Keep track of your income and expenses (bookkeeping and accounting) according to Singapore accounting standards. Depending upon the volume of transactions, we can provide bookkeeping services either on a weekly, monthly, quarterly or yearly accounting basis.
- Know when to file your corporate taxes. Filing your corporate taxes accurately and within the stipulated timeframe is critical to ensure your business does not incur additional penalties.
Accounting Consultancy is a Professional Accounting Firm in Singapore with qualified accountants. Over the years, our focus is to provide Professional, Personalised & Prompt accounting services to local and international clients. As a result, our organization grew rapidly over the years, attaining many awards and certifications.