Learn about the 5 Reasons to Register a Company in Singapore
For starters, some might opine that registering a company in Singapore is quite a difficult task due to the highly administrative nature of the entire process. The truth could not be further than that statement. Singapore Company formation can be done as long as the investor or business owner meets the following conditions:
1) An Approved Company Name,
2) At least one company director who is a Singapore resident, shareholder(s),
3) Company Secretary which is named within 6 months of Company Incorporation,
4) Paid-up capital of Min S$2,
5) Local Singapore address as the registered address of the company and registration for corporate taxes.
All these conditions can be easily met which is evident by the glut of international business owners who have made their regional base of operations in Singapore. As such, we can then say that it is entirely true that the Singapore company registration process is very simple and actually helps business owners.
There are also business owners who might be worried that they would not be able to spend enough time if they opt to set up another branch or office outside their home country. After all, operating a business requires a large amount of time which they might not be able to spare. This opinion might come from the fact that certain countries have regulations in place that state that business owners will need to be fairly hands on and actually be present for daily operations if they want to set up a business there. Fortunately, Singapore’s laws do not require the physical presence of investors or business owners to run the company. Business owners would, however, need to bear in mind the fact that there should at least be one company director who is a Singapore resident in order for them to meet the Singapore company registration requirement. There are many businesses and corporations across Singapore who conduct daily operational routines with a business owner who is offshore and businesses success have very little to do with the local presence of the business owner.
Read on how can Foreigners start a business in Singapore?
In terms of taxation for businesses, Singapore has one of the most favourable corporate tax systems in the world. Not only is the tax rate relatively low, the government has also put in place various incentives and schemes to provide further financial assistance to start-ups and new companies. However, such measures has led to the country mistakenly being taken as a tax haven. A tax haven is a place – normally a country – whereby international tax laws are not as rigid and thus, businesses are not liable to declare and eventually pay tax for assets and profits. In actual fact, Singapore is a thriving financial institution with stringent regulations on corporate tax which is internationally recognised the world over. Thus, potential investors need not worry about setting up businesses in Singapore because the country has an undeserved reputation as a tax haven.
In conclusion, Singapore company registration is relatively straightforward and regulations are set to ensure that business owners have the comfort of knowing that the whole process will end with the successful setting up of their base of operations in the country. Whether the Singapore company registration myth has to do with corporate tax rates, ease of process or condition for business owner to be onshore, it is safe to say that Singapore thoroughly deserves the World Number 1 ranking by the World Bank on its ability to help business owners register, incorporate and grow their businesses in the country.