Setting up a company in Singapore is a good position. This country provides an environment that is very friendly for new businesses. In fact, the World Bank Report graded Singapore 1st for ease of doing business in the year 2007 and 2008. Singapore is also ranked as the 2nd most competitive country in the world.
So it’s easy to see that doing business in Singapore is a great prospect for any foreign companies. However, you have to be aware of the various governing laws when forming a company in Singapore.
Singapore Company Incorporation – What is required
The requirements are simple:
– Both Singaporeans and non-Singaporeans can register a new Singapore company
– Singapore allows 100% foreign ownership
– Paidup capital of one dollar is approved
– Minimum of 1 director and 1 shareholder is required
– There must have at least one local director
– The company must have a local registered address
– The company must hire a local qualified company secretary
What are the benefits
One of the biggest benefits of having a local company is that the government allows ZERO coporate tax for the first $100,000 profits for fresh set ups. This benefit will be enjoyed for up to three years. This alone is a great motivation for most foreign companies.
The corporate tax for profits between $100,000 to $300,000 is only 8.5% and profits above $300,000 is just 17%. Not many countries can match the low tax rates set by Singapore, which makes it a very big factors for new company set ups.
Company secretarial services
One important highlight here is that a local secretary must be hired by the company and this secretary must be qualified. Most of the time the secretary is not part of the company’s payroll and it’s assigned to a 3rd party that provides secretarial services.
So, the challenge here is to hire the right company secretary who is qualified and professional. Fortunately, there are a number of professional and capable company secretaries in Singapore so it shouldn’t be too hard to look for one.
Conclusion
Incoporating a company in Singapore is a good idea. You get to enjoys the benefits of tax exemption plus Singapore is also a fine place to find local talents.
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