Singapore Companies - Singapore Company Registration Services

SINGAPORE COMPANY

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Singapore is vastly becoming a favourable business city. Enjoying brilliant business infrastructure, political stability and close economic relationships with many leading economies of the world. Now is the time for entrepreneurs worldwide to register their company in Singapore. 

As of the 1st of January 2013, Singapore has implemented a corporate tax system (Single Tier corporate income tax system) whereas a Singapore Company's stakeholders will not pay tax twice. In this respect the tax paid by the Company on its taxable income is the final tax and any dividends paid to the shareholders of the Company will be tax exempt.

To set up a company and start doing business in Singapore a company must be incorporated with the Accounting and Corporate Regulatory Authority (ACRA) Singapore. Most Singapore companies are registered as private limited liability companies. A private limited company in Singapore is a separate legal entity and shareholders are not liable for the company’s debts beyond the amount of share capital they have contributed (hence the term limited liability).

Advantages of Registering a Singapore Private Limited Liability Company

• Singapore companies are taxed at a lower rate than personal income.  To encourage local entrepreneurship, the Singapore Government has confirmed a full tax exemption for newly incorporated companies;
• Zero tax (0%) for new Singapore companies on the first S$ 100k annual profits for the first 3 years;
• All companies are to enjoy 8.5% corporate rate tax proftis up to S$ and above that a flat 17%;
• There are no dividend or capital gains taxes in Singapore.

For example a Singapore Company with S$ 1m annual taxable income will have to pay the following taxes:

After the lapse of the first three years:

As per the relevant tax legislation of Singapore, corporate tax is imposed on a teritorial basis on the income that is (a) accruing in or derived from sources of Singapore and (b) received in Singapore from abroad. 

Singapore Company Registration Requirements

• Company name – a name must be approved by the Singapore Company Registration authority before they can be used.
• Director – Minimum of one individual director required who has to be resident of Singapore  (being one of the following: Singapore citizen, Singapore Permanent Resident or Singapore Employment Pass/EntrePass/Dependant Pass holder).
• Shareholders – Minimum of 1 shareholder and maximum 50 shareholders. A director and shareholder can be the same or a different person. The shareholder can be individual or corporate entity.100% local or foreign shareholding is allowed. 
• Company Secretary  – Singapore Resident Company Secretary is required. It has to be noted that in case of a sole director/shareholder, the same person cannot act as the company secretary. The company secretary must be a natural person who is normally resident in Singapore.
• Registered Address  – The registered address must be a physical address (can be either a residential or commercial address) and cannot be a PO Box.
• Paid up Capital  –  Minimum paid-up capital is S$1 only. Paid up capital (in other words the share capital) can be increased any time after incorporation of company. There is no concept of Authorized capital for Singapore companies. 

Taxation

Singapore companies enjoy very attractive tax exemptions and incentives. Your company pays approximately 8.5% for the first S$300,000 annual profits and 17% flat after that. There are no capital gains or withholding taxes on Singapore companies. Excellent tax benefits and business reputation of Singapore are the key reasons why entrepreneurs from around the world prefer to form a company in Singapore.

Singapore companies taxation on foreign income

Full tax exemption is granted on the first $100,000 of chargeable Income for qualifying new companies for the first three years of assessment consecutively.