Company Incorporation in Singapore

Business Registration & Incorporation in Singapore

Advantages:

1. Limited Liability for Shareholder

A Singapore incorporation company is a separate entity in the eyes of the law. Hence, shareholders’ maximum risk is capped at the amount of capital they invested.

2. Flexible Shareholding Structure

After the formation of a Singapore company, you can have up to 50 different shareholders with different shareholding %. Shareholders can either be individual or corporate shareholders too. At any point in time, a addition or change of shareholder can be done at ease, without affecting the business.

3. Corporate Tax Exemption Benefits

From Year of Assessment 2020 (YA 2020 onwards), new Singapore Start-up companies may enjoy tax exemptions at 75% for the first $100,000 of corporate profits for the first three years after the initial setting up of a company in Singapore.

For new Start-ups

Corporate Profit	Tax Exemption %	Amount Exempted
First $100,000	75%	$75,000
Next $100,000	50%	$50,000
Total $200,000		$125,000 (Tax Benefits)

 

For other companies

Corporate Profit	Tax Exemption %	Amount Exempted
First $10,000	75%	$7,500
Next $190,000	50%	$95,000
Total $200,000		$102,000 (Tax Benefits)

Additional Profit will be taxable at 17%

4. Additional Tax Rebate may be given by IRAS

From time to time, the government may announce additional Corporate Income Tax (CIT) Rebate to be given to all Singapore Incorporated Companies. For example, for the past 3 years, the following CIT have been given to all Singapore companies:-

YA 2020	Companies enjoyed a 25% CIT Rebate capped at $15,000.
YA 2019	Companies enjoyed a 20% CIT Rebate capped at $10,000.
YA 2018	Companies enjoyed a 40% CIT Rebate capped at $15,000.
YA 2017	Companies enjoyed a 50% CIT Rebate capped at $25,000.

 

5. Tax-exempt Dividend

Shareholders can enjoy to receive tax-exempted dividend issued from the company.  In other words, shareholders will not be taxed again at his or her under his personal Income Tax for any amount of dividend received.

6. Perpetual Succession

Upon the company incorporation in Singapore, the company will be assumed to be a going concern perpetually, unless it’s being wind-up or strike-off. In other words, the exit of any shareholders (e.g. due to death, permanent disability, etc) does not affect the legal status or the company, because the company is considered a separate legal entity from its owners.

 

Before You Incorporate Your Company

Engage assistance from Registered Filing Agent (RFA)

If you are a foreigner, the Singapore company registration can not be done by yourself. You will need to get assistance from a Registered Filing Agent like ourselves. We are most happy to be your partner and advisor in guiding you through the entire Singapore company incorporation process.
If you are a Singaporean or Singapore PR, you can actually try and incorporate the company by yourself if you are familiar with the business registration process of doing so. Nevertheless, you are most welcomed to engage our friendly service, if you don’t want the hassle to do it yourself. Our Singapore company incorporation services are available at a very affordable price.

Choose a Business Name

Before the incorporation of a Singapore company, you must first choose a business name for your company. Preferably, please think of 3 different names in advanced, in case your 1st choice name may not be approved by ACRA. Most of the time, the business name availability checking can be determined instantaneously.
However, if your name have some restricted or sensitive words or includes words related to finance, law, media, and bank, the approval process can take a few extra weeks, because ACRA would need to verify the name further before approval.

Deciding the shareholders and officers of the Company

Every registered business in Singapore needs to include

At least one Local Director

Every company needs at least one resident director located in Singapore, and that person can be a Singaporean citizen, permanent resident, or an individual who has a valid employment or dependent pass. If you are a foreigner, and you don’t have a local resident director, you can always use our Nominee Director Service to fulfil this mandatory requirement.
Besides this one individual, any company can appoint as many directors as they like, provided they are an above 21 years old, he is NOT a bankrupt and do NOT possess any criminal record.

At least one Shareholder

At least one shareholder will need to be registered as the member of the company. This shareholder can be local or foreigner. The shareholder can also be a corporate shareholder, other than being an individual shareholder. As a private limited company, you can have up to 50 shareholders, and shareholders can be foreign or local entities or individuals.

A Company Secretary

According to the Singapore Company Acts, every company needs to appoint a Company Secretary to act as the administration officer of the company, no later than 6 months after its incorporation and company registration in Singapore. If the company has more than one directors, they can appoint one of the directors to act as the company secretary as well. Of course, if you want to make sure you are fulfilling all your compliance and filling requirements properly, it is best to engage professional secretarial services from Timcole.

Decide on the Initial Company Paid-up Capital

When setting up a company in Singapore and registering it, we normally will propose the initial paid-up capital of between $1 – $1,000. This amount can be increased after the Singapore company registration and incorporation process is completed, with the proof of deposit or bank statement indicating the additional capital contribution provided

Decide on the Registered Address of the Company

Last but not least, your business must have a local physical address in Singapore. For certain trade, even your residential address can be accepted as a proper registered address for your company. You may also consider using our Registered Address Service (i.e. Using Timcole’s address) for this purpose.

 

When You are Ready to Incorporate Your Company

The following information will be required For Company Registration in Singapore:

For Singaporean/ Singapore PR	For Foreigner
Director NRIC Identity Card copy – Front and Back. Shareholder NRIC Identity Card copy – Front and Back Copy	Passport copy of Foreign Director, Proof of Foreign Address. Shareholder Passport copy, Proof of Foreign Address.
Provide the following information Up to 3 Proposed Company Name. Primary Business Activities Description. Location of Registered Office Shareholding % for each shareholder. Paid-up capital for your business	Provide the following information Up to 3 Proposed Company Name. Primary Business Activities Description. Location of Registered Office Shareholding % for each shareholder. Paid-up capital for your business

 

After Company Incorporation

Once the Singapore company registration is successful, you will receive the following documents

• An email from the ACRA which will indicate your official certificate of company incorporation as well as your Company Registration Number (Company UEN).
• Your Company Bizfile and Company Constitutions Document. These 2 documents are important for the purpose of opening a new bank account.

With the company constitution and Company Bizfile, you can then go ahead an open up a corporate bank account with any Singapore registered banksuch as DBS, UOB or OCBC). Normally, you will need to be physically present to open a bank account as well as providing your authorised signatory requirements to the bank.

Depending on the nature of your business, you also may need to obtain one or more business licenses in Singapore. For example, if you are running a food business and setting up a restaurant, you will need to obtain an additional license from Singapore Food Agency (SFA). And if your restaurant need to sell liquor as well, you will need another liquor license from the Singapore Police.

You must also be aware of your annual filing and compliance requirements with ACRA. In addition, you will need to make sure you do annual Tax filing with IRAS. Of course, if you engage professional secretarial services from Timcole, all these compliance requirements will be taken care of by us.

If you are a foreigner and if you need to be travelling or staying in Singapore to run and operate your business, you may also need to apply for the appropriate workpass (e.g. Employment Pass, Dependant Pass, Enterpreneur Pass) to stay long term in Singapore. At Timcole, we can also provide you with the necessary immigration services as a one-stop service for all your needs.

Click here for more information on setting up a local company.