A Comprehensive Guide to Company Incorporation in Singapore

Singapore is one of the world's most attractive destinations for business incorporation not only due to its strategic location but also because of its pro-business environment and low corporate tax rates. Company incorporation in Singapore provides various advantages, among which are ease of access to global markets along with a consistent regulatory environment to both local entrepreneurs and foreign investors. An overview of the incorporation process of a company in Singapore, the services available to assist in the incorporation process, and how foreigners can establish a business in the country is provided in this article.

Why Incorporate a Company in Singapore?

Singapore's friendly business policies and company incorporation in Singapore procedure make it the number-one destination for setting up a business. Here are key reasons why businesses choose Singapore for incorporation:

• Ease of Doing Business: Globally, Singapore features in the top slot regarding ease of doing business. The system is somewhat straightforward and relatively less time-consuming compared to other countries; therefore, allowing firms to reach the market with reduced gestation periods.
• Location: It has a strategic location from a business perspective, with good connectivity to other major Asian markets in China, India, and ASEAN economies.
• Tax Incentives: It has one of the most attractive corporate income tax rates in the world, with a flat rate of 17%. Newly incorporated companies may also apply for tax exemption on the first $200,000 of taxable income for the first three consecutive years.
• Pro-Business Environment: Company incorporation in Singapore offers corruption-free governance, political stability, and a transparent legal system that creates a conducive environment to carry out businesses.
• Access to Global Talent: The country is a hub of talent, educated labor, and offers ease of hiring, both local and foreign workers.

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Incorporation Services in Singapore

While company incorporation in Singapore offers an effective incorporation process, there are still various requirements and regulations while doing so. Most of the entrepreneurs and companies, both local and foreign, depend on incorporation services in Singapore to smoothen the process.

Generally, the services of incorporation usually offer assistance in :

• The preparation of the company incorporation in Singapore documents, which include the constitution of the company, particulars of shareholders, directors, and the company secretary.
• Filing with ACRA: The service provider will file the incorporation documents on behalf of the applicant.
• Company registration: This will involve the registration of the name and reservation and confirmation that the chosen name meets the minimum requirements.
• Setting up a corporate bank account: A few of the services help you open a bank account for your business in Singapore.
• Local legislation compliance: The service providers make sure that your company is compliant with all the local legislation, from filing annual returns to corporate governance-related regulations.

These services are normally provided by law firms, accounting firms, and business registration firms specializing in the provision of such services. The companies save the entrepreneur's time by ensuring the company incorporation in Singapore process is done without hitches and that it is done properly.

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Company Incorporation Services in Singapore

While selecting an agency offering company incorporation in Singapore, it is equally important to choose those with a good level of experience in the local regulatory environment. Most of the service providers offer broad packages comprising incorporation and other follow-up support services such as corporate secretarial services, bookkeeping, and tax filing.

Following are some of the major services provided:

1. Company Name Registration: Before any company incorporation in Singapore, the proposed business name has to be reserved with ACRA first. The incorporation service will conduct searches on the availability of the name and verify that the name does not violate the naming guidelines of Singapore.
2. Preparation of Incorporation Documents: It shall assist in preparing all the documents comprising the constitution, previously known as Memorandum and Articles of Association, of the firm; provision of details relating to the company's directors and shareholders, and the company secretary.
3. Filing with ACRA: The incorporation service provider shall file all necessary documents with ACRA and shall also address every query or issue arising during the registration process.
4. Company Secretary: Every company in Singapore shall appoint a company secretary within six months from the date of its incorporation. Most of the incorporation services include corporate secretarial service to ensure that your company complies with statutory obligations regarding keeping proper records, filing of necessary documents, and observing formalities required under the Companies Act.
5. Registered Address: Your company shall have a registered office address in Singapore during and after the incorporation. To make things easy, many providers allow usage of their office address as your registered address.
6. Some of the incorporation services will also help to open the corporate bank account in Singapore, which is a must for any business operation.

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Singapore Company Incorporation Cost

The cost of company incorporation in Singapore, therefore, varies in relation to various factors such as the type of business structure, how complex the incorporation may be, and who provides your services. Generally, there are just two broad categories: government charges and professional service provider charges.

1. Government Fees:

• Company Name Registration: A S$15 fee to ACRA for registering your business name.
• Incorporation Fee: ACRA has charged S$ 300 for the incorporation of a private limited company.
• Annual Filing Fees: Besides incorporation costs, there are other compliance fees that are recurring in nature such as annual returns filing with ACRA, which generally have a filing cost of about S$ 60.

2. Professional Service Fees:

• Incorporation Service Providers: Most of the professional service providers generally quote in the range of S$ 600 to S$ 1,500 on their packages for company incorporation, depending upon the services included in those packages.
• Corporate Secretarial Services: Most of the incorporation packages would include corporate secretarial services and may range from S$ 200 to S$ 600 per annum.

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Can Foreigners Incorporate a Company in Singapore?

Yes, foreigners can company incorporation in Singapore without much hassle. Singapore encourages foreign investment and has implemented several schemes for promoting entrepreneurship and business growth. However, there are certain things that foreign entrepreneurs need to consider:

1. Local Director: Every company incorporation in Singapore must have at least one resident director in Singapore. These include any Singaporean citizen, permanent resident, or EntrePass, Employment Pass, or Dependent Pass holders. As a foreign entrepreneur, if you cannot provide a local director for your company, you may use nominee director services via an incorporation service.
2. No need for physical presence: The foreigners are not required to be present in Singapore at the time of incorporation of a company. It may be easily done by accessing ACRA's BizFile+ online system.
3. Employment Pass: At the same time, if you want to come to Singapore to manage your business operation yourself, you may apply for an Employment Pass upon the incorporation of your company. An EP allows you to work in Singapore as the director of your own company.
4. Company Bank Account: Most banks in Singapore require the physical presence of a company's directors to open the bank account on behalf of the company. A few banks may grant an exemption for a foreign director, provided that certain requirements are met, particularly if you're hiring a good incorporation service.

Steps to Incorporate a New Company in Singapore

1. Business Structure: A majority of the businesses in Singapore are based on a private limited company structure, usually offering limited liability and flexibility in ownership.
2. Company Name Registration: Check the availability of your desired company name with ACRA and register the name at a fee of S$15.
3. Preparation of Incorporation Documents: The preparation of all documents required to be filed will be assisted by your incorporation service provider, including particulars of shareholders, directors, and the company secretary.
4. Filing with ACRA: The required documents must be filed, and S$ 300 as an incorporation fee must be paid.
5. 'Corporate Secretary' appointment: A qualified corporate secretary must be appointed within six months starting from the date of its incorporation.
6. Opening a Corporate Bank Account: Once your company has been incorporated, you should open up an account to facilitate business transactions.

Roadmap to Success: Essential Steps to Incorporate a New Company in Singapore

Conclusion

Company incorporation in Singapore brings a long list of benefits, including tax advantages, business-friendliness, and opening up borders to international markets. Be it a local entrepreneur or a foreign investor, the incorporation process is efficient and relatively easy, with professional incorporation services by your side. Knowledge of costs, various requirements, and steps involved in the process will help you set up your business in one of the world's leading business hubs.