Singapore is progressively developing close economic ties with the world’s leading economies. The nation is also becoming a lucrative business avenue because of its rich business infrastructure and political stability. Incorporating a Singapore Company is the best way to enjoy Singapore tax exemptions and incentives.
Singapore Company Incorporation: Benefits
Here are a few benefits of incorporating a Singapore company:
* Low corporate and personal tax rates, with no capital gains tax
* Liberal immigration policies conducible to foreign entrepreneurs and flourishing
* Least red tape and bureaucracy among Asian countries
* Ample availability of skilled workforce and labor, both foreign and native
* Excellent infrastructure, with world-class sea, land and air connectivity and
* Best Asian country to live and work in
* Pro-business, free and globalized environment
Singapore Company Incorporation
A Singapore company is generally incorporated as:
Private Limited Company: Setting-up a private limited company requires various documentations to be furnished to the ACRA. This includes the Memorandum and Article of Association, Statutory ‘Declaration of Compliance’ and Consent forms signed by directors and secretary. The rules governing the incorporation of a private limited Singapore company are:
* Must have at least one shareholder (corporation or individual), director and company secretary. A shareholder may also act as a director
* At least one of the directors must be a Singapore resident.
* The company secretary should necessarily be a Singapore resident
* The company must have a minimum paid-up share capital (initial) of S$ 1.00
* The company must also have a valid registered address in Singapore.
Singapore Company Limited by Guarantee: A Singapore company limited by guarantee is a non-profit making organization, such as trade societies, professional bodies and those promoting art and charity. Here, the member liability is limited to the amount agreed upon in the Memorandum of Understanding (MOU), which has to be contributed at the time of winding up the company. Members have to contribute up to their guarantee amount to pay up for the debts incurred during their period of membership.
Foreign Company Office
A Singapore company incorporated by a foreign national/company can also be:
* A subsidiary
* Representative office
* Branch office of the existing business
Singapore Tax Regulations for Singapore Companies
To encourage local entrepreneurship, the Singapore Government allows tax exemption on newly incorporated companies. This exemption is limited to initial three assessment years and the first S$100,000 of taxable income. Subsequently, for an income up to S$300,000, tax rate of 8.5% is applicable. Thereafter, a flat rate of 17% is deducted from the net income as taxes.
Capital gains are free of taxes in Singapore. Moreover, Singapore tax system is a single-tier tax system which means once an income is taxes at the corporate level, it can be distributed free of taxes to the shareholders. The country also allows free profit repatriation and import of capital. These attractive tax policies are designed to make Singapore a world-class business destination for global entrepreneurs.
To learn more about Singapore company incorporation and Singapore tax rules and incentives, log onto GuideMeSingapore.com