Opting for such services with commercial locations can serve as the company’s official office, which not only boosts the business’s image but also assures adherence to legal what is a good cap rate for an investment property obligations. In Singapore, it’s mandatory for every business to maintain a registered address that is open to the public for a minimum of three hours within normal working hours. To encourage business growth, Singapore offers various tax exemption schemes that allow eligible companies to lower their tax burden, especially for start-ups and SMEs. In Singapore, all companies, both local and foreign, are taxed at a flat rate of 17%. After you have registered your company, you can set up and manage your company’s Corppass account on the Corppass website. Private limited companies are required to have their financial statements audited by an auditor or a registered public accountant at least once a year.
In that case, the process can take 14 days to 2 months. In most cases, your company name will be approved immediately. You will then need to make a payment of SGD 15 to complete the process. Once you’ve filled in all the information, review and confirm your application, then click submit.
What to Do After Registering Your Business
The application fee for sole proprietorships and partnerships, LP and LLP is $100. Submit your application via BizFile+. P.O. Box addresses cannot be used.
Opening a Business Account
Miss a step and the penalties can be serious, including deregistration. Foreign-owned companies have to stay on top of compliance. However, if you plan to live in Singapore and take charge of the business, you’ll need either an Employment Pass or an EntrePass. Many foreigners choose service providers like Sleek to take care of everything remotely. With Sleek, you get more than incorporation. Appoint company secretary
- A Unique Entity Number (UEN) is an identification number for your business, which can be found in the Business Profile.
- Company registration in Singapore is a straightforward process, designed to minimize unnecessary bureaucracy.
- It’s simple to set up a company in Singapore as a foreigner.
- Foreigners can register a company online through ACRA’s Bizfile portal.
- In Singapore, all company registration applications must be submitted online through the Bizfile system, which you can only do so with a Singpass.
Step 1: Choosing the Right Business Structure
The application fee is $15. A business name is the name your business will use to operate. You will need to understand the key differences between the structures and decide which is right for your business. Singapore has four examples of liabilities main types of business structures.
That’s why I’ve created this guide to provide practical, step-by-step instructions to make your Singapore company setup as smooth as possible. It’s no surprise that Singapore ranks among the top globally for ease of doing business. Thinking of incorporating a company in Singapore?
- “Submitting your application via BizFile+.” Last updated April 9, 2021.
- Names, IDs, addresses, and share allocation for each.
- When registering your business name, you need to provide a code that describes your main business activity.
- Here are the key points to help you choose and reserve your company name successfully, and to avoid unnecessary delays or fees.
- This guide walks you through the process step by step.
- Once you click “Start,” you will be asked if you will log in as a business or individual user.
Step 6: Fill Out the Online Application
You will need to deposit the share capital of the company into the bank account. However, the process can take longer depending on your planned activities and whether your business requires additional approvals. If you are a Singapore citizen or resident with SingPass access, you can register your business yourself using the BizFile+ portal. However, the business and owner are legally the same entity, meaning you are personally liable for any debts. It is a separate legal entity, meaning your personal assets are protected if the business incurs debt or legal issues. Before starting your business in Singapore, you need to choose an appropriate business entity.
If you do not have a local director or registered addresses, costs can rise to SGD 5,000 to 8,000 or more, as you’ll need to pay for those services. If your company is GST registered invoice online or on the go and is no longer carrying on a business, you would also need to apply for cancellation of GST registration with IRAS. We can manage the entire company registration process remotely through our online corporate services platform. Your company must have a local registered address in Singapore. That means appointing a company secretary within six months, filing annual returns with ACRA, sending in corporate tax filings to IRAS, and keeping accurate accounts.
ii) Annual Returns
Here are the key points to help you choose and reserve your company name successfully, and to avoid unnecessary delays or fees. After submission, ACRA will send the necessary documents to the appointed directors, shareholders, and company secretary. If you don’t have a Singpass, you’ll need to engage a professional filing agent. Once everything is ready, submit your application online through Bizfile using a Singpass. This must be set during registration and can follow a 12-month or 52-week cycle.
When establishing a new company in Singapore, there is an applicable registration fee of S$300. In Singapore, the cost structure set by the government for company registration is clear-cut. Subjected to Singapore’s corporate tax rate, these branch offices might also qualify for specific tax benefits based on their commercial activities. Such businesses that aim for growth and seek substantial investments find this structure suitable as it maintains a clear distinction between their personal finances and those of their enterprise legally and fiscally. Unlike public companies whose shares are traded on stock exchanges, a Private Limited Company does not sell shares to the general public, affording greater control over who owns parts of the business. In Singapore, the private limited company is a favored business structure because of its benefits.
The structure you choose will determine your liability, tax obligations, and operational flexibility.
Incorporation
Now that you have everything ready, including your approved company name, you can proceed with incorporating your company. Failure to comply with these requirements can result in fines of up to SGD 5,000. The company’s sole director cannot also serve as its company secretary.
Receive your incorporation documents
For a company, input the initial paid-up capital amount, e.g., SGD 1 or more, and the number of shares. This is paid online (via credit card or other e-payment options) at the end of the application. Singapore’s ACRA BizFile+ portal allows you to file the registration online.
Ltd. company as a subsidiary rather than a branch office structure. Moreover, a branch office in Singapore usually has higher operating costs, as there are audit requirements. For tax purposes, a branch office is considered nonresident and tax exemptions do not apply. The parent company must own 100% of the branch office and is responsible for the liabilities of the branch office. This is generally recommended for small, low-risk businesses or freelancers. For most businesses in Singapore, a Private Limited Company (Pte. Ltd.) is the most appropriate structure.
Step 4: Understanding Tax and Compliance Requirements
Incorporated companies are required by the Singapore Companies Act to hold an Annual General Meeting (AGM) and file annual returns with ACRA to ensure the company’s information is up to date. UEN number must always be quoted in business letters, statements of account, invoices, and other official correspondence, along with the company’s name. Generally, you should log in as an individual, since the business user option is generally meant for corporate service providers or entities managing filings on behalf of other businesses. In Singapore, all company registration applications must be submitted online through the Bizfile system, which you can only do so with a Singpass. Deciding on your company’s Financial Year End (FYE) is also important because it sets the deadlines for your mandatory annual filings and tax submissions.
Foreigners can register a company online through ACRA’s Bizfile portal. There’s no rule requiring a local shareholder, making it a popular choice for foreign founders. Singapore lets foreigners hold all the shares in a Private Limited company.