In Singapore, the common types of business entities are the sole proprietorship, partnership, private limited company and public limited company with the private limited company being the most common and favorite.
This is because the private limited company is a different legal entity from its owners (shareholders). This allows you to limit your risk as compared to sole proprietorship or partnership business setup. Furthermore, the procedure for Singapore company registration is not complicated.
A Singapore company that is private limited is easily identified as it will have the abbreviations “Pte Ltd” in its name.
1)The owners or shareholders can be local individuals or foreigners or other companies
2) It is a different legal entity from the owners, so:
* The liability of the shareholder is limited to the number of shares he/she holds;
* The company as a corporate entity can take legal or face action;
* The company can own property.
3) The company can have up to 50 shareholders.
4) The company must have at least one director to manage it on behalf of the shareholder. It is possible for the director to also be a shareholder.
5) For tax planning, the company has several benefits that makes it attractive, namely:
*Tax exemption scheme for qualifying new start-up companies– In the first 3 years from the date of company registration, the company can benefit from the government’s tax incentive with an effective tax rate of 6.37% on the first S$200,000 of chargeable income. For this, the company are eligible except companies whose principal activities are investment holding or undertakes property development for sale, for investment, or for both investment and sale.
*Partial tax exemption scheme for companies– for companies that do not qualify for the “tax exemption scheme for new start-up companies”, it will then qualify for partial tax exemption. Under this scheme, the company can enjoy a tax rate that is effectively 8.28% on the first S$200,000 of chargeable income.
*For both schemes, chargeable income in excess of S$300,000 will be taxed at the prevailing corporate tax rate of 17%.
– The company needs a minimum one local resident director and one local secretary, both must be either Singapore citizens and/or Singapore permanent residents.
– The company will need a Singapore address for its registered office.
– Paid-up capital of at least S$1.
The following information would be required to register a company
Ready to start the process for Company Registration in Singapore? Call us at 67219390 or contact us today! EnterpriseBizpal is a registered filing agent with ACRA providing corporate secretarial services and additionally, we can also be your accountant in Singapore. We can arrange for nominee director services, if you do not have a local resident director, and make arrangement to set up a company for your business in Singapore. Arrangement can be made with the bank so that when you visit Singapore, you can open a corporate bank account.
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