Company registration in Singapore is a popular solution among foreign investors, as the jurisdiction is considered one of the most developed business centers in the world. Singapore is the “connecting link” between East and West. It is an international center with a strategic location in Southeast Asia. As a large logistics center, the country is considered a lucrative platform for registering a company in Asia.
As one of the leading jurisdictions in the world for tax incentives, favorable government policies, central location, and ease of registration, Singapore remains a popular choice for entrepreneurs and directors looking to expand their businesses. The Accounting and Corporate Regulatory Authority (ACRA) acts as the Registrar of Companies. They oversee the company incorporation service.
Why registering a company in Singapore is worth it
The first thing to mention is that this jurisdiction has a strong startup ecosystem, reliable sea and air connections with the rest of the world and emerging markets, highly developed communication networks, and developed banking industry. It is possible to open a corporate account in Singapore in USD, EUR, GBP, and other currencies.
The government has signed over 70 trade agreements to facilitate cross-border trade. When assessing tax benefits, it should be said that shareholders’ dividends are not taxed, there are no capital gains taxes and low inheritance tax. The talent pool is literate, speaks English, which minimizes the difficulties of communication between offices.
If you are planning to use the company incorporation service in Singapore, the first step is to obtain confirmation of the name from ACRA, which cannot be identical to the existing one or violate any TM. If the name contains, for example, terms such as “finance”, “legal”, “broker”, etc., additional permissions are required. You can reserve a name for up to 120 days.
The next step is the preparation of registration documents, including the Charter, information about the management team of the company, their personal data, and addresses of residence. The Charter describes in detail the rules and procedures governing the activities of the firm, the purpose, rights, and obligations of the management and shareholders. Next, you need to register with ACRA. When registering a new Singapore company, the following documents will be required.
For individual shareholders:
- Copy of the passport.
- NRIC or Resident Card (for Singapore residents).
- Proof of residential address.
For corporate shareholders:
- CCI issued by the Registrar of the jurisdiction in which the company is authorized.
- Name, ULE, and legal entity address.
- Paid-up capital and details of all shareholders/directors.
- Types of household activities.
- The firm must have a min. 1 and max. 50 shareholders (individuals or legal entities). 100% foreign ownership is allowed.
- To open a company in Singapore, the structure must have at least 1 resident director (a citizen of this jurisdiction, its permanent resident, or a person who has a work permit in the country).
- The firm must appoint a secretary (resident individual) no later than half a year after registration.
- Minimal paid-up capital for company registration in Singapore – 1 SGD.
- Availability of local staff.
- The name of the company must be approved before an entrepreneur can set up a company in Singapore.
When opening a registered office in Singapore, businesses can either rent office space or opt for a virtual office. Another option is to apply for a home office license.