If you want to setup a company in Singapore, you would be glad to know the this country offers an environment that is very friendly for new businesses. There is not doubt that the World Bank Report graded Singapore 1st for ease of doing business in the year 2007 and 2008. Singapore is also the second most competitive country after USA.
So it’s easy to see that doing business in Singapore is a great prospect for any overseas establishments. However, there are rules and regulations that you might want to know when forming a local company in Singapore.
Singapore Company Incorporation – The basic conditions
The stipulations are simple:
– Anyone can register a new company in Singapore, applies to both locals and foreigners
– Singapore allows 100% foreign ownership
– Paidup capital of one dollar is permitted
– There must be one shareholder and one director
– There must have at least one local director
– The company must have a local registered address
– Company secretary is a requirement
What are the benefits
Here’s one great benefit: The country offers tax exemption for the first $100,000 profits for new companies, up to 3 years. This is a very competitive benefit that many overseas companies enjoy.
The corporate tax for profits between $100,000 to $300,000 is only 8.5% and profits above $300,000 is just 17%. The coporate tax rates are competitive, which prompts many overseas companies to start their local presence in Singapore.
The need for company secretary
One important highlight here is that a local secretary must be hired by the company and this secretary must be qualified. Many company usually don’t hire a full-time secretary and is usually outsourced to a 3rd party that provides secretarial services.
So, it is important that the company must hire the right professional and qualified company secretary. In Singapore, there is no lack of capable secretaries. In fact, many are highly qualified so finding one should be easy.
Closing
Incoporating a company in Singapore is a great plan. You get to enjoys the benefits of tax exemption plus Singapore is also a great place to find local talents.
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