Singapore

Singapore, officially known as the Republic of Singapore, is a sovereign island city-state situated in Southeast Asia. Recently, the World Economic Forum declared Singapore as the most competitive economy globally, surpassing the United States. It also ranks high on the United Nations Human Development Index (HDI) and is among the top ten countries in terms of nominal per capita GDP, according to IMF estimates.

As a city, state, and country in one, here are key facts about Singapore that are essential before registering a company:

• Capital City: Singapore
• Currency: Singapore Dollar (S$, SGD)
• Languages Spoken: English, Malay, Mandarin, & Tamil
• Ease of Doing Business: Very Easy
• Payroll Frequency: Monthly
• Population Size: 5,850,342 (Estimate as of December 2020)
• VAT-Standard Rate: 7%
• GDP – Real Growth Rate: 3.1%

Dubbed an “Asian tiger” due to its rapid economic growth, Singapore attracts investors with its business-friendly policies and technological advancements. Its strategic location in Southeast Asia facilitates trade, foreign exchange, and export-import activities, making it a favorable environment for businesses. Notable reasons for registering a company in Singapore include:

1. A market focused on exports.
2. A booming and sustainable economy.
3. Access to diverse international marketplaces.
4. Gateway to the world’s largest consumer market in Asia.

Kinds of Business for Singapore Company Registration

1. E-Commerce Industry
   The Singapore government promotes consumer-centric innovation, making it an ideal hub for e-commerce. Popular platforms like Amazon, Lazada, and Qoo10 thrive here, with over 3.3 million online shoppers providing ample growth opportunities.
2. Retail Industry
   Singapore’s retail landscape includes supermarkets, convenience stores, and clothing shops. Various sales channels—shops, kiosks, and online platforms—create a vibrant environment for retail businesses.
3. Ed-Tech Industry
   The EdTech sector is rapidly growing to meet local demands, with Singaporeans investing significantly in educational enrichment. Opportunities for coaching institutes and study visa businesses are abundant.
4. Food Industry
   With India renowned for spice and food exports, registering a company in Singapore allows for extensive food product imports and exports, catering to the diverse culinary preferences of Singaporeans.
5. Travel Industry
   Singapore saw 19.11 million tourists in 2018, over three times its population. This presents opportunities for businesses, especially travel agencies catering to Indians visiting for business, education, and leisure.
6. Tech Companies
   As a burgeoning technology hub, Singapore attracts tech companies aiming to penetrate the Asian market, making it an advantageous location for tech startups.

Important Criteria for Singapore Company Registration

• At least one shareholder is required for a proposed company.
• Shareholding can be by individuals or corporations, with foreigners allowed to own 100% of the company.
• A minimum paid-up capital of S$1 is necessary to start a business, which can be increased by injecting additional funds at any time.
• Both Singapore residents and non-residents can register a company.
• A corporate director must be at least 18 years old, with no upper age limit.
• At least one director must be a resident of Singapore (citizen, permanent resident, or holder of an Employment Pass).
• Within six months of formation, a certified company secretary must be appointed, who must also be a Singaporean citizen.
• All companies must have a local registered address for statutory document safekeeping; P.O. boxes are not acceptable.
• The proposed company name must receive government approval before registration.

Stepwise Procedure to Register a Company in Singapore

1. Apply Company Name
   The first step is choosing a unique company name that reflects your product or service. It must not violate trademark rights, be offensive, resemble existing names, or be already reserved.
2. Decide the Right Business Structure
   Selecting the appropriate corporate structure is vital for compliance with tax and legal obligations.
3. Prepare Documents for Registration
   Required documents include the Company Constitution (or Articles of Association), written authorization from each director, and details of each officer and shareholder.
4. KYC Process
   Your Corporate Service Provider (CSP) will conduct a Know Your Customer (KYC) due diligence, typically requiring identity and address verification documents, along with credentials of shareholders and executives.
5. Consult Advisors
   It’s advisable to seek professional guidance throughout the registration process.

Benefits of Online Singapore Company Registration from India

1. Corporate tax rates ranging from 0% to 17%, and individual tax rates from 0% to 22%.
2. Tax-free dividend distributions.
3. No capital gains tax.
4. Easy tax rebate pooling.
5. Unilateral tax credits available.
6. Reduced withholding taxes on income from foreign sources.
7. A robust framework of 75 tax treaties and 8 treaties related to maritime and air transport.
8. Access to 26 Free Trade Agreements/Economic Partnership Agreements.
9. A well-established financial system with low-cost financial resources.
10. Incentives for developing Singapore as a leading intellectual property hub.
11. Singapore is a premier Asian financial center, hosting over 160 banks.
12. Rich liquidity in financial markets for instruments.
13. Recognized as the easiest place globally to conduct business.
14. Home to the world’s most renowned arbitration center.
15. Clear and effective tax regulations.
16. A skilled and experienced workforce.
17. Policy of unrestricted entry for foreign nationals.

Step-by-Step Timeline to Register Company in Singapore

1. Choose a name and get it approved by the competent authority.
2. Document Preparation.
3. KYC details of the shareholders’ and directors’ due diligence.
4. Filing of an online company registration application.
5. Opening a bank account using the incorporation certificate.
6. Register for taxes and complete other necessary forms.

Things to Keep in Mind While Registering a Company in Singapore

• Unique Company Name
  ACRA approves business names, rejecting those that are too similar to existing ones. Authorization is needed for certain regulated terms.
• Restricted Words
  Terms such as “Assurance,” “Bank,” or “Trust” require justification for use.
• Registered Office
  A registered office must be maintained in Singapore; virtual offices are generally not permitted.
• Local Director
  At least one director must be a Singapore resident, but others can be of any nationality.

Taxes in Singapore

• Non-residents face a flat tax rate of 15% to 22%, while citizens enjoy a cap of 22%.
• Corporate profits are taxed at a rate of 17%, with various incentives and exemptions available.
• Singapore employs a territorial tax system, providing foreign tax credits for treaty nations and mitigating double taxation.
• Dividends distributed to shareholders are tax-free.
• Capital gains are not taxed, and R&D investments can yield significant tax benefits.

Why Choose TAX SOLUTION to Register a Company in Singapore?

If you require assistance with registering a company in Singapore, TAX SOLUTION is here to help. Our team, consisting of experts in India and Singapore, is dedicated to providing top-notch Singapore Company Registration Services online. With extensive experience across various sectors, we guide you through every phase of the business lifecycle.

In addition to registration, we offer services such as Business Loans, GST Registration, TDS Return Filing, GST Return Filing, ISO Certification, and other regulatory services post-incorporation. Our expertise ensures your business structure is established correctly from the outset. Seize the opportunity to launch your business legally worldwide—our team is ready to support you throughout the entire process of Singapore Company Registration from India.