Eternity Law International News Company registration in Singapore

Company registration in Singapore

Published:
November 6, 2020

What do you need to register a company under Singapore jurisdiction?

  • Choose company name. It will be better to think up 2-3 variants, in case the desired one is unavailable because this name is already taken.
  • The postfix of the company is usually PTE. LTD., but PTE is also possible. LIMITED, PRIVTE LTE. and PRIVATE LIMITED
  • Amount of minimum registered capital is one SGD; there are no restrictions on the amount and currency. If a client asks to register one SGD, then he needs to know the following. If over time it is necessary to transfer a share or an additional shareholder (s) appears in the structure, then the registered capital of 1 share (1 SGD) will need to be expanded to the amount that can be divided between the shareholders; therefore we recommend to register the capital of 1000 SGD (1000 shares) at the beginning. The registered capital must be credited to the corporate account of the company within a year from the date of registration of the company.
  • Type of activity: you need to tell what the client needs and we will select the most suitable from the classifier list.
  • According to the law, the company must have at least one resident director in Singapore. If you need to appoint an additional client director, you will need his/her passport and proof of address translated into English.
  • Will a client be a shareholder or is a nominee service required?
  • Account in a local (Singaporean) bank:

To open an account, the Customer must arrive in Singapore. The Customer will have to answer the following questions in English at the bank branch:

  • an accessible description of the activity (product, service, meaning of operations, country (s))
  • 3 contracting partners from the part of suppliers (product/service, country, website)
  • 3 contracting partners from the part of buyers (product/service, country, site)
  • approximate number of operations per month
  • approximate amount of one operation
  • account types other than SGD (USD, EURO)

Account in Singapore:

The advantage of opening an account in Singapore is that the country where the bank is located is the same as the country of incorporation. The banking system in Singapore is one of the strongest in the world.

Disadvantage of account in Singapore is that the company will be recognized as a tax resident, so all profits will be taxed on income.

We are actively working in Singapore for opening accounts with all leading banks: DBS. UOB, OCBC, Maybank Singapore and CITIBANK Singapore.

Initial deposits for opening an account eqqual 1000 in each required currency (added to the invoice upon registration).

In CITIBANK Singapore, average daily balances need to be maintained at USD 100,000. It is possible to open a multicurrency account and issue a multicurrency card.

Account outside Singapore:

Singapore has a territorial taxation principle, according to which a company that is a non-resident of Singapore is exempt from the need to pay income tax. When filing a tax return, we classify all income as Foreign Income and thus avoid Income Tax. In order for a company to be recognized as a tax non-resident, three following conditions must be met:

  • Account outside Singapore
  • Presence of a foreign director in the structure (preferably two) so that the local director does not sign decisions, contracts, etc. (we can appoint nominee Seychelles directors)
  • Management is conducted outside Singapore, i.e. place of signing the documents is not Singapore, but the address of one of the foreign directors.

The disadvantage of an account outside Singapore is that the country of registration of the company will not coincide with the country of the bank’s location (banks in some jurisdictions are wary of this).

The registration period takes up to 5 days (the company is registered within 24 hours, after which documents are prepared and seals are made (secretarial pressure and main seal)

An audit is mandatory for companies that meet two of the three following conditions:

  • Revenue is over 10 million SGD
  • Assets number is over 10 million SGD
  • Number of employees is over 50

These conditions make it possible to exempt a company with high turnover from audit, but such a company should have assets less than 10 million SGD and employees less than 50.

The basic income tax rate is 17% of the income.

Income Tax Benefits for Singapore Tax Residents are the following:

  • in the first three years of operation, 75% of the first S $ 100,000 profit for each year is taxed;
  • for each of the first three years 50% of the subsequent S $ 100,000 of profit is subject to  income tax.

After the first three years, the company receives the following income tax benefits:

  • 75% of the first S $ 10,000 of profits are exempt;
  • only 50% of the subsequent S $ 190,000 profits is taxed.

You could be interested

SIC.COVID-FREE 2020

Today, people face an unprecedented threat of COVID-19 caused by SARS-Cov-2 virus. In these circumstances, population safety maintaining is crucial. Governments are taking a number of measures to slow down COVID-19 spread, which entails large-scale changes in companies’ activities. To guarantee continuity in current pandemic, enterprises must take action to counter COVID-19. This can be...

Investment fund: how it works

Funds are fairly considered one of the most frequently applied products for getting gains. To receive the most out of them, it makes sense to figure out what they represent and what classes are best for different types of investors. What is an investment fund (IF)? A fund organized for investing purposes is a structure...

EMI license in Belgium

The financial landscape is undergoing rapid transformation, with E-Money Institutions (EMIs) playing a pivotal role in reshaping our approach to financial transactions and sales. Belgium, frequently referred to as the “Fintech Epicenter of Europe,” stands as a symbol of innovation within the financial sector. One of the driving forces behind Belgium’s burgeoning fintech sector is...

SPI license in Latvia

This jurisdiction is quite attractive for starting a business project, as it offers favorable tax conditions, has a stable economic base and provides comprehensive support for start-up entrepreneurs. Many businessmen also prefer Lithuania for expanding their business. In addition, the country has shown significant commercial growth and progress in recent years. Our company is made...

Getting company in Poland

Investing in Polish commercial projects is becoming more and more popular among foreign capital holders – this is one of suitable places for such deals to progress in Central Europe. When it comes to flexible immigration law and favorable tax breaks in European countries, Poland becomes an excellent jurisdiction where investors, entrepreneurs and firms’ owners...

Offshore company Bahamas

Registration fee 1 405.00 USD The cost of renewal of the company 1340.00 USD Number of directors 1 Corporate tax 0.00% Paid share capital 25 000.00 Mandatory reporting no Who does not know about the Bahamas? It’s real paradise, located in the Atlantic ocean, it has a membership of over 700 Islands, 40 of which...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7