Singapore’s corporate taxation has contributed a major part in Singapore’s worldwide popularity as a pro-business Indonesia company incorporation cost. The corporate taxation states that start up companies are to pay Zero tax on the first S$100,000 of chargeable income for the first three consecutive years. In addition, a 50% exemption is given on the next S$200,000 of the chargeable income. This has been the major reason why Singapore was ranked first in the list of World’s Easiest Place to do Business given by World Bank, Ease of Doing Business Report, 2010. For this reason, foreign individuals and companies are encouraged to form a Singapore company.
For business entrepreneurs who are searching for help in Singapore company incorporation, please check the basic requirements below:
• Minimum 1 Shareholder + 1 Resident Director + 1 Company Secretary
• Minimum initial paid-up share capital is S$1
• Singapore Company must have a Singapore registered office address
For business entrepreneurs who are in doubt of what type of business structure to use, we have prepared a brief description for each business structure:
• Branch office: A branch office is an extension of its foreign parent company and is not a separate legal entity. Liabilities extend to the parent company.
• Subsidiary: A subsidiary is a Singapore private limited company and is a separate legal entity. Liability is limited to the subsidiary and does not extend to the foreign parent company.
• Representative office (RO): A RO has no legal status and is a temporary administrative office meant for conducting market research or co-coordinating activities. Liabilities extend to the foreign parent company.
For foreigner business entrepreneurs, here are some of the basic points to remember:
• Engage a Professional Firm: Foreign corporations and individuals must engage a professional firm that specializes in company incorporation in Singapore to set up a company.
• Work Visa for Foreign Individuals: Foreign individuals who wish to relocate to run their new Singapore Company operations have two types of work pass to choose from.
• Work Visa for Foreign Corporation Management Staff: Foreign Corporation that plans to relocate their management staff to Singapore to run their new Singapore company setup must apply for Employment Pass.
• Foreign Individuals/Corporation Not Relocating to Singapore: Foreign Individuals and corporations that do not intend to relocate to Singapore to operate the company must appoint a Singapore resident director in accordance with the Singapore Companies Act.