Singapore Entry Strategy
Are you a based Individual, company or Business –Entity based in country other than Singapore? Looking to set up your venture/company in Singapore? Need an expert & trusted compliance partner?
Voyager Partners is the answer.
Business Incorporation Services
Incorporation and Registration
Local and foreign individuals prefer to opt for private limited company registration. It is a tax-efficient and dynamic structure most suitable for business growth.
- It can have 1-50 shareholders.
- At least one director must be ordinarily resident (Singapore citizens, Permanent Resident, or an Entrepass holder).
- Singapore corporate income tax is in the range of 0%-17%.
- It has a separate legal identity from company shareholders.
- It has perpetual existence.
- It is a legal person having rights of a natural person.
- It can buy or sell property in its name.
- It can sue or be sued in its name.
- The company is responsible for its losses or debts.
- Transfer of ownership of shares is easy.
- It is credible to investors, financial institutions, suppliers, & customers.
- As a tax resident, a local private limited company gets all tax benefits and incentives offered by the authorities.
A foreign corporate entity can set up a subsidiary company to expand its business activities to Singapore.
- It has a separate identity from its parent company.
- The parent company can own 100% shareholding in its Singapore subsidiary.
- A subsidiary is treated as a local company. It gets the tax benefits, exemptions, and rebates provided by the authorities.
- A subsidiary is liable for its debts and losses. The parent company’s liability is limited to its share capital.
The foreign companies can also register their branch office in Singapore.
- The branch office has no separate identity from its foreign parent company.
- It is taken to be the extension of its parent company.
- The parent company is liable for its branch’s debts and losses.
- The management of the Singapore branch office deals with issues regarding shareholding, business activities, and structure by referring to the Memorandum & Articles of Association of the parent company.
- It is not treated as a local Singapore company. It cannot claim the tax benefits, exemptions, and rebates offered by the local authorities.
- Before company incorporation in Singapore, discuss your needs with your agent. Because, with the right business structure, you can manage the risk, liability, growth, & branding of business effectively.
(Please take note, Currently, we are not providing Branch Office Services until further Notice)
- Minimum paid-up capital of $1
- At least one shareholder
- At least one local or resident director
- At least one company secretary
- Registered local address
Incorporating a Business in Singapore for Foreigners
3 Steps for Company Registration in Singapore
- Choose a unique name that will hint at the nature of your business
- ACRA rejects names containing vulgar or obscene words
- It should not violate copyrights or trademarks
- If your application gets referred to the higher authorities, the approval can take up to 2 months.
- Approved Company name
- Description of business activities
- Registered local address
- Particulars of shareholders, directors, company secretary
- Foreign Individuals: a copy of passport & proof of residential address (overseas)
- Foreign Companies: Memorandum & Articles of Associations, Certificate of Incorporation
- Singapore Residents: A copy of their Singapore identity card
Step 3: Submit an application to ACRA The process to incorporate company in Singapore is online. Submit your documents to your agent who can visit online portal BizFile+ for the task.
Business Operations and Compliances Support Services
Why Global Companies are best suited to start business in Singapore
According to World Bank’s Doing Business 2019 report Singapore has been consistently recognized as the world’s best place to do business in the World Bank’s annual survey of 189 economies around the world.
Compared to many countries that are considered as business hubs, it is easier and quicker to register a company in Singapore as the process takes only one day to complete given all the proper requirements are completed and the application is duly submitted. Owning a company in Singapore can set up by anyone including foreigners. An easy and fast procedure availability of an online system has been made by the incorporation where you can submit your application forms via the internet on-line.
Agreements Singapore is home to the world’s top players across all industries, in part, due to its location in the heart of Southeast Asia and close proximity to surrounding emerging markets. By means of Singapore, you can reach out to the other countries in Asia effectively. Air travel is also frequent with daily inbound and outbound flights thus making business operations easier and more convenient. Singapore preserves good international connection with other countries when it comes to trade and industry. Since the signing of the first FTA under the ASEAN Free Trade Area (AFTA) in 1993, Singapore’s network of FTAs now includes 21 bilateral and regional FTAs in force and 41 Investment Guarantee Agreements. Ongoing FTA negotiations with other countries are being facilitated. These agreements facilitate business and trading across borders and make it less costly for Singapore firms to expand their operations internationally.
Vibrant Financial Center and Affordable Access to Funding
Singapore is a vibrant nerve center to 124 commercial banks, 365 fund managers and 531 capital markets services license holders, as of March 2016. It is not only a hub for wealth management and investments in Asia, but has the fourth largest forex trading center, the Singapore Exchange (SGX).
As a result, entrepreneurs are in good stead to have access to a combination of private and commercial banking services to fund the expansion of their business and at rates as low as 1% per annum.
Incentives for headquarter setup
Also, to encourage multinational companies to relocate their headquarters to Singapore, the Economic Development Board (EDB) offers regional headquarters (RHQ) and international headquarters (IHQ) incentives. Companies which are conferred the RHQ status enjoy a concessionary tax rate of 15% for qualifying income arising from headquarters activities and operations carried out from Singapore. Those awarded IHQ status enjoy even further attractive tax rates of between zero and 10%.
Regional headquarters which use Singapore as an international intellectual property (IP) holding location may claim writing-down allowance (WDA) for the cost of acquisition of the IP.
Foreign income exemption
Another benefit is that Singapore-based holding companies or headquarters can repatriate dividends from their directly held foreign subsidiaries to Singapore free of Singapore tax. Those whose foreign subsidiaries are engaged in substantive economic activities but are unable to meet the qualifying conditions for this tax exemption may apply for a specific exemption.
This is because Singapore adopts a territorial basis of taxation. Foreign-sourced income is taxed only when it is repatriated back into Singapore. In addition, tax is not levied on foreign-sourced dividends remitted back into Singapore if – the dividends are received from a country with a headline corporate tax rate of at least 15%, some tax was paid in that country (such as withholding tax paid on the dividends or income tax paid on the profits out of which the dividends were paid), and the exemption is beneficial to the Singapore company.
Attractive Personal Tax Framework
The Singapore personal tax structure is progressive. Marginal rates range from 0 – 22% and the framework allows residents to tap various reliefs, thereby lowering their effective payments
By situating their international HQs here, companies benefit from Singapore’s network of 76 comprehensive Double Taxation Avoidance Agreements. They also gain from Singapore’s many free trade agreements and the Investment Guarantee Agreements.
Business opportunities for Global Companies in Singapore
Food and Gourmet
Fast foods and snacks
With the boom of e-commerce and businesses wanting to lure more and more customers and sell their products and services through the internet, there is also an ever-expanding demand for professionals and companies offering online marketing services. The services could range from marketing, copywriting to search engine optimization. If you have any skills like copywriting, website designing or developing search engine optimization, or social media marketing, then there are huge opportunities for you and you can think of new company formation in Singapore.
Automobiles, repair and spare parts
Here are some more small business or investment opportunities for foreigners in Singapore:
- Thrift or vintage store
- Eco-friendly products or organic products or gift packs
- Home tutoring
- Hand-crafted jewelry
- Fitness training
- Elderly care services
- Repair services
- Deep-cleaning services