In the last couple of years, company formation in Singapore has made easy by the government as well as governing bodies like ACRA (Accounting and Corporate Regulation Authority), IRAS (Inland Revenue Authority of Singapore) and others. Not only locals (Singaporean citizens and permanent residence holders) but foreigners can also register companies in Singapore and start business.
How Singapore Has Become a Global Business Hub?
Singapore has among the best places to start a business for last couple of years (some other names are USA, Denmark, New Zealand and Netherland) and now it has become the first choice to start a company. The main reason behind this phenomenon is easy company formation in Singapore, the government has made it extremely easy for locals and foreigners to start a business. Let’s see some reasons why it is easy to do company formation in Singapore.
Singapore is located at a strategic geographical location where business owners can access a market of multi-billion people with less than 3-hour flights. Because of China and India, Singapore has become an important port in the world and without any doubt it is the financial center of the Asia.
Interestingly, Singapore Airport has been ranking “the best airport in the world” for last two decades. More than 20 million people travel to/from/via Singapore that makes it a popular business destination.
Government of Singapore has made some dramatic changes in its taxation system has revolutionized the industry and the entire country. Singapore has one of the lowest tax rate, VAT rate and corporate tax rate in the world. Corporate tax rate is only 17% and the VAT rate is 7%. Singapore taxation system is considered the best in the world.
International Business Owners
It is possible to do company formation in Singapore from overseas and the laws are very soft for international business owners. These laws combined with soft immigration policies and low tax makes Singapore an attractive business destination.
Work Force and Quality of Life
The education system of Singapore is considered the second best after Finland. The corporate industry attracts the best talent from all over the world and the top quality of life in Singapore also encourages people to being their business to Singapore.
How to Do Company Formation in Singapore?
There are five different business structures in Singapore; Company, LLP (Limited Liability Partnership), LP (Limited Partnership), Partnership and Sole Proprietorship. Among these five, a company is considered the best business structure because of its flexibility. A company must have:
- At least one partner/shareholder
- One company secretary (if there is only one shareholder, he/she cannot be company secretary)
- At least one director that must be Singaporean citizen or permanent residence holder
- At least $1 paid-up capital (this could be increased later after company formation in Singapore)
- A physical business address (PO box cannot be used as business address)
Please note that Singaporean citizens can self-register the business but foreigners need to hire a firm to register a company for them. Also, visiting Singapore for just company registration is not necessary.