Singapore is one of the most sought after business destinations in the world. Statistics speak for themselves. When other world economies were shrinking during the recent downturn, Singapore faced no such difficulties. Now that major economic superpowers America and China seem to be on the mend, there is reason not to be optimistic about Singapore’s ability for higher growth rates. Thus, it comes as no surprise that large multinationals already have a registered Singapore address where they are able to manage regional business operations from the booming city state. They would also be able to play an integral part in Singapore’s economy including setting up bank accounts and embarking in international activities. In part, this is due to the stability and continued positive relationship between economy and profits. Additionally, the Singapore government certainly plays a part in ensuring that the ease of conducting business within its shores remains viable through well placed incentives, grants, schemes and programmes.
Firstly, the system put in place for company registration and incorporation in Singapore is extremely simple. There is little or no red tape and as long as all documents and information fulfil the requirements, there is no reason why the application for a new company will not be approved within 2 days of submission. The conditions for a registered company in Singapore are really straightforward as well. Both local and foreign business owners will certainly find it easy to meet all requirements for setting up a new corporation. In essence, one only needs to ensure that the company has at least one shareholder and one director, a qualified company secretary and a Singapore office address. To set up a limited liability company in Singapore, the minimum share capital required per corporation is $1. Unlike other countries which have unusually high red tape, registering a company in Singapore only takes 1 – 2 working days. Thus, new business owners need not worry about a long wait before they can start operations.
Having a Singapore registered company is the first step towards international growth. Singapore’s close proximity to large economies around Asia means that it remains an ideal location for new business ideas and existing conglomerates. Its immigration policies are also inviting to foreigners who prefer to be more hands on with the management of business operations. Foreign business owners can choose to apply for either the Entrepass (for entrepreneurs with innovative business ideas) or the Employment Pass (for business owners who fulfil certain conditions set by the government). Both these visas enable foreign business owners to work from Singapore offices within a certain period of time. However, it is often not a problem for such visas to be extended beyond the initial approval period. Additionally, it is possible to recruit highly qualified local manpower to contribute their talent to the organisation. Singapore graduates are sought after because of their ability to enhance value to corporate goals.
Singapore’s government is also highly receptive towards organisations which possess highly innovative and creative new ideas. Those with technological enhancements in a few key areas would find themselves easy to blend into the existing infrastructure in the city state. There are various programmes and schemes that would help these innovative individuals and their companies enhance their capabilities both in Singapore and internationally as well. It is also possible for new companies to enjoy tax savings from Singapore’s corporate tax structure. Singapore possesses one of the lowest corporate tax rates in the world whereby tax for corporations are capped at 17%. New companies can also apply for tax rebates which can amount to hundreds of thousands of savings per financial year. Savings in 2012 were then used to improve on business operations and in the long run give these organisations the edge necessary to move ahead of the pack.
Foreign business owners might find certain terms and conditions new and confusing as they are not used to the existing system in Singapore, simple as it may be. As such, it would be highly probable that they require professional help in the form of accountants and consultants. These consultants offer a range of business solutions including assistance in setting up the business operations, providing tax consultancy, company secretarial services, among others. Those who are interested should contact or e-mail consultancy service providers to get a step closer towards more information on setting up a business in Singapore.
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Categories: Singapore Incorporation and Company Registration