Additionally, what you would need to prepare for the initial stages of incorporating a company in Singapore include the following:
- Deciding on a type of business entity. A private limited company in Singapore is the most preferred choice because you will not be personally liable for any associated risks your entity option carries. Other options include sole proprietorship, public company or representative office among others.
- A registered address for your business. This can be a commercial or residential address (no PO Boxes allowed). All official documentation and correspondence will be sent to your registered office address.
- A director and shareholder (at least one resident director needed).
- A nominee director (if you can’t find a suitable candidate, we provide nominee director services).
- A company secretary (this is a mandatory requirement stipulated by the Companies Act).
To run a business in Singapore, your company must appoint a company secretary who will handle all your business compliance matters.
If you meet all the necessary compliance requirements, your Singapore company incorporation process will be a smooth sailing one. Should you require a work visa to relocate to Singapore and manage your company from here, you will require an Employment Pass visa which we can also assist you with. Upon successful incorporation, you will be issued a certificate of incorporation by ACRA.
Employment Pass (EP) visa’s are the most sought after work visas in Singapore by foreigners who want to live and work in the country, especially to run a business. Employment Pass applications – sometimes referred to as EP applications – can be lodged before your arrival in Singapore. With this work pass, EP holders is valid for 2-years for the first application. Subsequent renewals have a validity of 3-years.
What Are Your Options to Minimise the Cost of Incorporating a Singapore Company?
Not only does Singapore offer flexible policies of immigration, but it is also easy to find virtual assistance. One of the ways through which you wouldn’t have to use your own money for the start-up costs for company incorporation Singapore is to look for funding. Singapore offers affordable access to funding since it has about 123 commercial banks, 291 capital markets services license holders and 154 fund managers. The Singapore Exchange, SGX for short, is also the fourth largest forex trading centre in the world. This makes Singapore a vibrant financial centre for investments and wealth management. Private and commercial banks offer their services to entrepreneurs and help them to fund the expansion of their businesses at very low rates, such as 1 percent per year.
Another option for entrepreneurs to lessen the cost of company incorporation is to apply for governmental grants. Examples of such grants include: Productivity and Innovation Credit (PIC): The government of Singapore will reward you through two options. The first option involves claiming a tax deduction of 400% of the expenses for each of the following six business activities, available from Years of Assessment (YAs) 2011 to 2015:
- Research and Development (R&D) projects
- Intellectual Properties (IP) and Rights including designs, trademarks, patents, etc
- Purchase of IP for business usage
- Purchase or leasing of equipment
- Training of employees
- Design projects
The second option involves converting the company’s expenditures on any of the six business activities that we have mentioned above towards a cash pay-out. This expenditure can range from $400 to $100,000. A maximum of 60% can be claimed for a cash pay-out of $60,000 for the fiscal year 2013 to 2015.
Other Advantages of Starting a Business in Singapore
The Innovation & Capability Voucher (ICV): The main aim of this grant is to encourage small and medium enterprises to enhance their capabilities in areas of productivity such as technology innovation services, technical feasibility studies, technical support and knowledge development, human resources and financial management. This is a voucher worth $5,000 and you can utilize this for any of the services mentioned above.
Other than this, you can lessen the cost of company incorporation in Singapore by employing locally based labour, which is much cheaper than outsourcing others. For example, employment costs are considered higher in Hong Kong than in Singapore. The labour force in Singapore is not only affordable but is also majorly also English speaking to it is easier to communicate with them. Another of Singapore’s unique advantages is its low effective corporate as well as personal tax rates. For example, the progressive personal tax structure lowers the effective payments on residents by enabling them to tap on different reliefs.