Starting a business is not as easy as we think it is. One must consider business reports and a huge amount of taxes. But not all countries put a burden on newly established industries. One of the countries is Singapore which ranked first as the World’s Easiest Place to do Business.
Singapore is known worldwide for its pro-business law. The corporate taxation bill declares that newly established companies do not pay tax on their initial taxable income of S$100,000 for three consecutive years. An exemption of 50% is imposed on the succeeding S$200,000 of taxable income. Because of this, a lot of foreign investors are majorly interested and also encouraged to establish firms in Singapore.
Listed below are the basic requirements for businessmen to take note of if they plan to invest in Singapore:
-All Singapore businesses must have a Singapore registered office address
-There should be a S$1 minimum initial paid-up share capital
– There should be:
*1 shareholder (minimum)
*1 resident director
*1 company secretary
If interested businessmen are not yet decided on what business structure to utilize, there are 3 types of structures to be familiar with. First is the Subsidiary which is a legal separate entity. Foreign parent companies are not liable because it is only limited to the Subsidiary alone. Another type is the branch office which is not an independent legal entity. Parent companies are liable because they are extensions of the said office. And last is the Representative Office. Foreign parent companies are liable and administrative office is temporary. This office has no legal status and is tasked only for holding researches and co-coordinating activities.
If you are a foreigner, you are also encouraged and welcome to do business in Singapore. There are a few important points that should be remembered first before planning your interest. Foreign individuals must of course acquire a working visa. If they wish to relocate in Singapore to manage their businesses, they can choose between two types of work passes. If they are not decided on relocating in Singapore whether they are individuals or corporation, they are required to appoint a Singapore resident director in agreement with the Act of Singapore Companies. Also, engaging in Professional firms are a pre requisite before setting up a company both applicable for corporations and individuals. Lastly, for those who plan to relocate their management staff to Singapore to run a newly established firm in the said country, they must be able to acquire an employment pass before doing so.
Having read these important facts in incorporating a Singaporean company, hiring a business registration firm would be of great help in expediting major and minor areas in the process of your incorporation. If you are interested in incorporating a company in Singapore, click on the a link where you can find out more. Alternatively, you can also find a lot of useful information at IRAS website.