Singapore is one of the most suitable destinations for foreign businessmen that want toestablish a company in Asia. Thanks to its low corporate tax rates, legislation favoring foreign investments and educated and well-trained workforce Singapore can ensure the success of any company.
Why open a company in Singapore?
Singapore represents a powerful trade and investment market, being one of the most competitive countries in Asia. By opening a company in Singapore, foreign entrepreneurs can take advantage of:
•A network in excess of 50 complex double tax treaties. Our Singapore lawyers can provide detailed information on these treaties;
•Multiple free trade agreements and investment guarantee agreements that Singapore has signed with numerous states;
•Secure protection of innovations and ideas due to the severe legislation regarding intellectual property.
The city-state’s geographical position also helps companies that have trading ties with other Asian countries. The most employed business vehicle in Singapore is the limited liability company because it is very tax-efficient. Foreign enterprisers are also allowed to set up branch offices in Singapore.
You can see the main steps to open a company in Singapore in the video below:
What are the main steps when opening a company in Singapore?
In order to register a business in Singapore, the first step to be taken is to submit the company’s name for approval with the Trade Register. Other requirements for business registration in Singapore are that the company must have at least one resident director, at least one shareholder and a secretary that must also be a resident. An important aspect when establishing a company in Singapore is that there required minimum capital is 1$S. The Singapore company must also have a registered office. Once these requirements are met, foreign investors must know they must request to legal services of a law firm in Singapore to conduct the registration procedure.
What are the documents required for company registration in Singapore?
When setting up a company in Singapore the documents that must be provided are:
1. the company name;
2. a description of the business activities;
3. information about the shareholders, directors and company secretary;
4. the company’s registered address;
5. the Memorandum and Articles of Association of the company.
Foreign citizens opening companies in Singapore must provide copy after their identification papers, proof of residency and sometimes a bank reference letter. Foreign entities incorporating companies in Singapore must provide the Certificate of Incorporation and Articles of Association.
Important aspects for foreign entrepreneurs in Singapore
Foreign entrepreneurs who want to open a company in Singapore should mind important aspects, such as:
•A professional firm has to be employed to register a company in the city-state. According to the current Singaporean legislation, foreign citizens or organizations cannot register a company by themselves;
•There are no requirements in regards to a visa if the foreign entrepreneurs does not wish to reside in Singapore, but wishes to open a private limited company here. He or she can run the business freely from abroad and visit Singapore with a visitor visa for a short while in order to attend business matters. Our lawyers in Singapore can provide more details on this matter;
•If the foreign citizen wishes to relocate in the city-state to run his or her business, he or she has to be issued an Employment Pass or Entrepreneur Pass. After being issued this work permit, he or she can undertake his or her activities as the local resident director of his or her company;
•All the incorporation formalities when opening a company in Singapore, including any work permits, if necessary, can be taken care of without the foreign entrepreneur having to be physically located in the country. Exception to this is when having to open a bank account, depending on the bank of choice.
Are there any other necessary formalities after opening a company in Singapore?
After the registration process is completed, the company must also open a corporate bank account and apply for the necessary business licenses in order to be able to operate. Also, the company must register with the Inland Revenue Services for taxation purposes and finally hire personnel if necessary.
Legal assistance for opening a company offered by our Singapore lawyers
Foreign investors starting a business in Singapore must know that the procedure must be carried out by local professionals. Our attorneys in Singapore have the necessary qualifications and experience to assist entrepreneurs with the company formation process. We can make the trade name reservation with the Singapore Accounting and Corporate Regulatory Authority and draft the Memorandum and Articles of Association. Then we can also file the documents with the Singapore Trade Register. If any special licenses or permits are required, our lawyers in Singapore can provide the proper support for obtaining them. The last step will be to register the company with the local tax authorities and the employees for social insurance purposes. We can also help investors choose the right type of structure in accordance with their business objectives.
For complete information about company registration and details about the taxation system you can contactour law firm in Singapore.
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