The confidence of foreign individuals, investors and companies in starting a business in Singapore is a result of the attractive corporate taxation where start up companies are to pay Zero tax on the first S$100,000 of chargeable income for the first three consecutive years. In addition, a 50% exemption is given on the next S$200,000 of the chargeable income. For that matter, Singapore was top ranked in the list of World's Easiest Place to do Business given by World Bank, Ease of Doing Business Report, 2010. This answers the question why foreign individuals and companies are encouraged to form a Singapore company.
For those who wish to form a Singapore company, here are the basic requirements to secure:
Minimum 1 Shareholder + 1 Resident Director + 1 Company Secretary
Minimum initial paid-up share capital is S$1
Singapore Company must have a Singapore registered office address
For those who are deciding what business structure to use, here is a brief description of Singapore's business structures:
1.Branch office: A branch office is an extension of its foreign parent company and is not a separate legal entity. Liabilities extend to the parent company.
2.Subsidiary: A subsidiary is a Singapore private limited company and is a separate legal entity. Liability is limited to the subsidiary and does not extend to the foreign parent company.
3.Representative office (RO): A RO has no legal status and is a temporaryadministrativeoffice meant for conducting market research or co-coordinating activities. Liabilities extend to the foreign parent company.
After a decision has been made on what particular business structure is applicable on your company objectives, it is important to furnish the basic requirements in registering a Singapore corporation. This includes the requirements for paid-up capital, authorized capital, director, shareholders, company secretary and registered address. After the basic requirements are completed, you also need to complete the following documents:
1.The approved name of your Singapore corporation;
2.A brief description of the proposed business activities that your Singapore corporation will engage in;
3.Particulars of the Singapore corporation's directors, shareholders and company
4.The corporation's Memorandum and Articles of Association (MAA);
5.Passport copies or Singapore Identity card (IC) copies of proposed shareholders and directors;
6.Residential address proof of proposed non-resident shareholders and directors; and
7.Details of the parent company if the shareholder is a corporate body.
For foreigners, here are some of the significant points to remember:
1.Engage a Professional Firm: Foreign corporations and individuals must engage a professional firm that specializes in company incorporation in Singapore to set up a company.
2.Work Visa for Foreign Individuals: Foreign individuals who wish to relocate to run their new Singapore Company operations have two types of work pass to choose from.
3.Work Visa for Foreign Corporation Management Staff: Foreign Corporation that plans to relocate their management staff to Singapore to run their new Singapore company setup must apply for Employment Pass.
4.Foreign Individuals/Corporation Not Relocating to Singapore: Foreign Individuals and corporations that do not intend to relocate to Singapore to operate the company must appoint a Singapore resident director in accordance with the Singapore Companies Act.
Lastly, foreign investors should also abide with the registration of Singapore Central Provident, a required pension fund scheme contributed both by employers and employees. If foreign individuals and companies are agreeable with all the requirements, documents to secure and corporate laws of Singapore, then they are much welcome to proceed to business registration.The application can be made online and can be setup in a days time. Processing would only include two steps, among which are securing name approval by filing an online application with the Companies Registrar and submitting the incorporation documents once the name is approved.