As most Asian countries, Singapore too has several free economic zones in which local and foreign companies can operate. Moreover, Singapore has a great infrastructure when it comes to trading companies in need of transporting and storing the goods they bring or take out of the country. Foreign investors are also welcomed to open various types of companies in Singapore, however when it comes to starting a trading business, the free zone company is one of the best choices.
Our lawyers in Singapore can offer more information on the Free Zones Act which also provides for the opening of free zone companies in the city-state.
You can also watch the video below for information on how to set up a Singapore free zone company:
Singapore is home to nine free zones, which is an impressive number for such a small country and each free zone offers tailored services and facilities to free zone companies established here. In order to create a company in a Singapore free zone, an investor must prepare the following:
When it comes to the share capital, a free zone company in Singapore must:
The whole capital must be deposited in the corporate bank account within the first year of activity of the Singapore free zone company.
Our law firm in Singapore can assist with the registration process of the free zone company.
Once the statutory documents are created, they must be submitted with the Singapore Companies Registrar as the company formation process is the same as for any other type of business. Considering most free zone companies are involved in trading activities, they will be required to register with the Customs Authority and obtain import and export licenses. It must be taken into account that other special licenses are required depending on the products to be imported or exported.
The main difference between a Singapore company and a free zone company is the fact that the free zone business is not imposed the goods and services tax for importing and storing the products in the free zone. Other tax facilities are also available for free zone companies carrying out trading activities in Singapore.
For assistance in starting a free zone company in the city-state, please contact our attorneys in Singapore.
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