Singapore is without a doubt one of the best places for you to incorporate your company in. Alongside Hong Kong, Singapore is the most financially stable country in Asia and economically, it has become a hub for all major corporations around the world. Having your company registered in Singapore will allow you to:
- Have a base in Asia in one of the best countries(from a financial perspective).
- Have your company in a business-friendly country.
- If you’re based in neighboring Asian countries, Singapore is very easy to get to.
- Have a corporate bank account with major worldwide banks(DBS, UOB, Standard Chartered, HSBC etc).
Furthermore, Singapore has a very easy visa system which allows practically any nationality a visa on arrival of 90 days. This is perfect if you have a quick business meeting or need some paperwork done!
With this in mind, Singapore is a very regulated country and you need to meet some legal requirements before having your own Singapore-registered company. In this section, I will guide on what exactly you need to do to have your business registered fast and without any issues.
Singapore Private Limited Company
The most common company registered in Singapore is a Private Limited Company. To register a private limited company you need:
- 1 Shareholder(can be an individual or a corporate entity).
- 1 Resident Director(A nominee director can be used for a fee if no resident director is available).
- 1 Company Secretary.
- Paid Share Capital of at least S$1.
- A Physical Singapore Registered Office Address.
- It is identical or similar to another company name in Singapore.
- It infringes on established names or trademarks in Singapore & worldwide(such as Coca-Cola).
- It has offensive language.
- DBS
- Citibank
- Standard Chartered
- ICBC
- UOB
- Company Registration: S$700 - S$1000 (most agencies will include a free year of company secretary & registered address service).
- Nominee Director: S$1700 / year + S$1700 refundable deposit.
- Registered Address: S$600 / year.
- Company secretary: S$700/year.
Before Registering Your Company
Company Name
Before registering your company, you need to choose a Company name. All company names need to be approved before the incorporation process begins. A company name can be rejected if:
Once your desired company name is submitted and approved, the incorporation process can begin.
Shareholders
Singapore allows a 100% foreign shareholding, so you can own all the shares of your company! A minimum of 1 and a maximum of 50 shareholders can have a stake in the company. Please note that the names of the shareholders appear on public records.
Resident Director
A Singapore Private Limited Company needs to have at least one local director. This must be a Singapore permanent resident or citizen. In the event you don’t have a local person to act for a director, a nominee director can be appointed.
Company Secretary
All companies in Singapore need to appoint a local competent secretary. The responsibility of a company secretary is to ensure regulatory compliance. Like the director, the secretary must be either a Singaporean permanent resident or citizen and must be appointed within 6 months of incorporation.
Share Capital or Paid-up Capital
The minimum paid-up capital for registration of a Singapore company is S$1 or the equivalent in any currency.
Registered Address
All companies registered in Singapore must have a local address where notices and official documentation is sent to. The registered address must be a physical address and cannot be a PO box or residential address. In some exceptions or for certain business, a residential address may be used to act as a registered address.
Opening a Corporate Bank Account
The advantage of Singapore is in its banking system. Practically every major worldwide bank has office in Singapore and when it comes to corporate accounts, you are spoiled for choice. Most banks will require that the account signatories and directors be physically present in Singapore for the account opening process - so you need to personally fly to Singapore for the account opening process.
In the event that you can’t be present in Singapore, you can submit identification and paperwork at either an overseas branch or at a Notary Public. The best banks for corporate accounts in Singapore are:
However, this depends entirely on you, all these banks have excellent banking systems and offer great accounts for your company.
Taxes
The corporate tax rate for Singapore is 17%, making it an attractive destination for businesses. While the tax is not the lowest, the financial security of Singapore makes it a great option. In addition, the corporate tax rate can be greatly reduced when taking advantage of tax rebates/credits offered by the Singaporean Government.
Singapore also charges a 7% tax on GST(Goods & Services Tax), however, this doesn’t apply for income generated outside of Singapore.
Costs To Incorporate
The costs of forming a business in Singapore is not cheap, particularly if you need a nominee director. Most firms will charge you a yearly fee for the nominee director plus a refundable deposit. Depending on the firm/agency used to form your company, the costs are:
Overall expect to pay around 3000€ / 3400$ to form a company + get a nominee director. This excludes the costs of you flying into Singapore for opening the bank account.
Timeframe of Incorporation
Forming a company in Singapore is quite easy and fast. The process normally takes less than a week from company registration to corporate bank account opening.
Conclusion
Overall, Singapore is one of the best places in the world to incorporate your business. It’s financial security coupled with its business-friendly Government, make it one of the most attractive places for business.
Hong Kong is becoming harder and stricter towards foreign-owned businesses and opening a bank account there is not easy anymore. If you’re going to be based in Asia for a long time and need a corporate structure for your business - Singapore is without a doubt the best place to be in!