Setting up a company in Singapore is a good idea. This country provides one of the best and safest environment for any new business setups. In fact, the World Bank Report ranked Singapore as the number one country in terms of the doing business for 2 consecutive years (07 and 08). Singapore is also ranked as the 2nd most competitive country in the world.
Starting a new business in Singapore is a wonderful intention for anyone who wants to start a business. While it is great, take note that there are rules and regulations that you might want to know when incoporating a company in Singapore.
Singapore Company Incorporation – What is required
Here are a few obligations:
– Anyone can register a new company in Singapore, applies to both locals and foreigners
– 100% foreign ownership of the company is permitted in Singapore
– Only $1 for paidup capital
– Minimum of 1 director and 1 shareholder is to be stated
– There must be an existance of at least one local director
– The company must have a Singapore registered address
– Company secretary is a must
Perks of setting up a Singapore company
One of the biggest benefits of having a local company is that the country allows tax exemption for the first $100,000 profits for newly companies, up to 3 years. This is a very competitive benefit that many overseas establishments enjoy.
The corporate tax for profits between $100,000 to $300,000 is only 8.5% and profits above $300,000 is just 17%. Not many countries can match the low tax rates set by Singapore, which makes it a very big factors for new company set ups.
Other obligations
Here’s one thing that you must take note: a local secretary must be hired by the company and this secretary must be qualified. Most of the time the secretary is not part of the company’s payroll and it’s assigned to an external party that specializes in secretarial services.
So, it is important that the company must hire the right company secretary who is qualified and professional. Fortunately, there are a number of professional and capable company secretaries in Singapore so it shouldn’t be too hard to look for one.
Conclusion
Incoporating a company in Singapore is a great idea. You get to receives tax exemptions, Singapore is also a fine place to find local talents.