Setup Company Singapore

Are you thinking about expanding your business? Want to conquer new turfs, capture new markets and geographical regions? Do you wish to establish a strong foothold internationally and earn more business? Searching for a pro-business region so that it is easier for you to setup a company and start operations? If so, then setup a company in Singapore.
 

Registering a business in Singapore is probably the best decision you can make when it comes to business growth and expansion. And this is evident from the fact that the World Bank has declared Singapore as one of the easiest places to setup and start business operations in the world.

And did you know that:

• Singapore has a very low annual inflation rate, as low as 1 percent
• Forbes magazine has declared Singapore as the third wealthiest nation in the world
• The total trade volume of Singapore in 2014 was $982,701.9 million
• Business owners in Singapore don’t have to pay dividend taxes or estate taxes
• Entrepreneurs in Singapore receive excellent support from the local banks
• The country has a cutting-edge business community

 

Solid Reasons to Setup Private Limited Company in Singapore

Need more reasons to setup private limited company in Singapore? If yes, then read on to find out!

Singapore provides both local and international entrepreneurs a pro-business environment to start and expand company operations in Singapore and across Asia. Some of the leading and the biggest global companies including Fortune 500 companies have established their headquarters in Singapore for all the right reasons.

Flexible Tax Policies

Newly established businesses in Singapore are offered corporate tax exemption for the first 200,000 Singaporean dollars. A 17 percent flat rate is charged on 300,000 Singaporean dollars. Furthermore, capital gains in Singapore are tax exempted and so are the dividends issues to the company’s shareholders.

Besides this, the country has also adopted the broad based consumption tax, also known as GST (Goods & Services Tax).Singapore has the lowest GST rates in the world.

Avoidance of DTA

Singapore has successfully established DTA (Double-Taxation Agreement) with other countries, reducing and exempting taxes for businesses that generate revenues from cross border activities on different income types. Simply put, this agreement is to lower the burden on business owners importing and exporting items. A DTA (Double-Taxation Agreement) provides a better understanding of the taxing-rights between Singapore and its international partners on types of income that are exempted and those that are taxable.

Business Friendly Environment

Singapore offers local and international entrepreneurs the perfect and business friendly environment. Anyone, be it local or foreigner, can establish and setup a company in Singapore and start operations. In comparison to other Asian and European countries, it takes only a 1 or 2 days to register and setup operations here. Additionally, to support the business community, Singapore also offers an online platform to entrepreneurs who wish to start their business in Singapore but are residing outside the country.

Open Immigration Provisions for Foreigners

Singapore offers open and flexible immigration provisions and policies, making it extremely easy, simple and fast for international business owners to start their business in Singapore and relocate here. Foreign entrepreneurs can quickly gain Singapore Permanent Residence (SPR) status in the fastest time.

Strategic Location for Doing Business

Nestled in the heart of South East Asia, Singapore is considered as a prime location for businesses. Once you setup operations in Singapore, you can easily penetrate into newer markets by venturing out into nearby ASEAN countries. Unlike other countries, Singapore puts no limitation or restriction on foreign business ownership. Capital import and the repatriation of business profits are allowed.

Excellent Copyright Laws

Singapore is also a safe and secure place to do business as the risk of copyright infringement is very low here. Copyright infringement in Singapore falls under criminal offense. The country provides legal entrepreneurs operating in Singapore unmatched intellectual property protection under the law. The country has implemented strict copyright laws, thereby protecting businesses from threats and issues concerning copyright infringements.

 

What is the available support from Bank in Singapore?

The best part about operating in Singapore is that companies regardless of their size or credit history receive adequate financial support from local banks and the government. The government offers amazing financing solutions to companies, helping them meet their working capital needs and financial challenges, successfully.

Here are some of the many financing options that business owners operating in Singapore can avail and apply for:

SME Micro Loans

Locally operating small or medium sized enterprises with less than 10 employees can apply for SME micro loans. These loans are generally taken out by business owners to support their day to day company operations and when they want to upgrade their factory equipment. Micro loan quantum is up to 100,000 Singaporean Dollars. The repayment period is up to four years while the interest rate is variable. It is determined by doing risk assessment of the company applying for the loan.

To qualify for the SME micro loan, you must meet the eligibility requirements which include the following:

• The company must be locally registered
• Should have at least thirty percent shareholding
• Annual sales of the company should be less than 1 Million Singaporean Dollars or have less than 10 employees

(Government Assisted Loans)

Business First Loan

This government assisted loan is exclusively for start-ups that have not been operational for more than 6 months. Such companies can easily apply for this loan and get up to 100,000 Singaporean Dollars. The repayment period is quite flexible spanning over 4 years.

WC Loan

The working capital loan is designed for companies that have been in the business for at least two years. Financing on this loan is up to 300,000 Singaporean Dollars. This loan is best to meet working capital needs and enjoy cash flow certainty. It has a fixed-monthly repayment plan.

Business- Venture Loan

This loan is designed to help businesses accelerate growth before the equity raising. It helps maintain your equity. What’s worthy of mentioning here is that financing is up to 5,000,000 Singaporean Dollars and more importantly, it is collateral free.

Collateral Free Loans

Under this loan type, you can enjoy business overdraft facility of up to 200,000 Singaporean Dollars.

Overseas Financing

This is an internationalisation finance scheme administered by IE Singapore. The loan resolves around asset based financing of up to ninety percent of the purchase price or valuation (whichever sum is lower).

Equipment & Machinery Financing

Finance business machinery and equipment by availing equipment & machinery loan. You can finance both new and used machinery up to 90 percent. The repayment period on this loan is up to 8 years. Only Singaporean registered entities are eligible to apply.

Commercial Property Loan

Expand your business operations as you grow by availing the commercial property loan. To expand your business operations and team, you will need more space and a bigger commercial property. With this loan, you can successfully finance your new commercial property with a repayment period of up to 25 years.

 

Requirements That Entrepreneurs Need to Follow to Setup Company in Singapore

Whether you’re an individual or a corporation, to start operations in Singapore you will first need to register with the ACRA (Accounting & Corporate Regulatory Authority). In order to successfully and smoothly operate in Singapore, you need to develop a strong understanding of the business registration process and requirements. This will help you navigate through the process easily and start business operations without any delay.

To help you develop a sound understanding of the registration process to start business in Singapore, we have divided it into two categories pre and post registration requirements:

Pre-Registration Requirements

1. First you will have to get your company name approved
2. Then you will have to hire 1 director who is local and above 18
3. A qualified secretary who is local and Singaporean resident must be appointed before 6 months of company incorporation.
4. The minimum paid-up capital for LLC at the registration time is 1 Singaporean dollar.
5. You must provide a local address when registering your company in Singapore. It must be a proper physical address (not just a POBOX number)
6. All paperwork must be completed and submitted in a timely manner to avoid any delays. Please note that in case if you’re a non-resident, then you will have to provide additional documents along with the necessary paperwork. These documents include your passport copy, proof of overseas residential address, a copy of your bank reference letter, personal and business details. Also, if your documents are not in English, then you will have to get them both translated in English and endorsed before submitting it to the registrar.

Post Company Setup Requirements in Singapore

Once your company gets registered, the next thing you need to do is fulfil the post company setup requirements in Singapore. And these include the following:

1. Request the registrar to issue you the hardcopy of the company incorporation certificate. This will cost you about 50 Singaporean Dollars. The copy can be collected the next day from the office of the registrar.
2. Also, request the company registrar to provide you with the PDF file, comprising of all your business details. This business profile will include all the necessary information such as your business registration number, capital paid-up, principal activities, incorporation date, and complete details of the director as well as shareholders. This PDF file is quite useful for both legal and contractual purposes. You will need these details when opening your company’s bank account and even when signing the lease.
3. Another post business registration requirement is getting your company licensed. In Singapore, licensing is a requirement especially for businesses operating in industries like finance, trade, food, travel and education.

 

What are the SME Grants & Assistance in Singapore?

The Singaporean government supports new business owners and investors tremendously. And this is evident from the numerous SME grants that are available for new businesses. Let’s take a closer look at some of the most impressive SME grants that the Singaporean government has to offer:

PACT (Partnerships for Capability Transformation)

PACT supports and promotes mutually beneficial partnerships between SMES and large organisations. It supports three types of business partnerships: partner development, knowledge transfer and co-innovation.

Eligibility Requirement

• Large organisations must generate sales revenue of more than 100 million Singaporean Dollars.
• SMES must be registered and incorporated in Singapore and have at least thirty percent shareholding

Benefits

Selected businesses can access projects that are aimed at improving and upgrading areas like:

• Capability development
• Overall business productivity

Besides this, projects that are successfully approved by SS (Spring Singapore) will be offered partial fund support of up to 70 percent.

ICV (Innovation and Capability Voucher)

This scheme aims to help SMES boost their operational efficiency and productivity.

Eligibility Requirement

• Must be a Singapore registered SME
• Have at least thirty percent shareholding
• Have less than 100 million Singaporean Dollar group annual sales

Benefits

Businesses that qualify can apply for capability development voucher which can be used for both productivity solutions and consultancy projects. Productivity solutions include technical and training solutions, design and renovation and equipment and hardware while consultancy projects can be related to financial management, Human Resource, innovation, and productivity.

CDG (Capability Development Grant)

This grant covers up to seventy percent of the qualifying project cost including employee training, skill certification, equipment and machinery upgrade cost and business consultancy. Eligible companies can take on large upgrading projects concerning to areas like process improvement, market access, productivity increase and product development.

Eligibility Requirement

• Must be a Singaporean registered SME
• Have at least thirty percent local shareholding

Benefits

• The biggest benefit is up to 70 percent of the project cost is covered.

To ensure a smooth and quick company setup in Singapore and get proper guidance about grants offered, it is best to hire a professional and experienced company that specialises in these areas. And this is what we are well-reputed for. We have the experience, knowledge and expertise, and have helped hundreds of companies and individuals set up business operations in Singapore.

Get in touch with us today and allow our experienced team help you register your business and setup operations in Singapore, the land of business opportunities, today!