Singapore is one of Asia’s most prominent business hubs and many companies have chosen the city-state to enter or develop their business in Asia and particularly in South-East Asia.
We will list down some of the main reasons why Singapore became one of the business epicenters in the region, and go through the different steps to set-up a new business in Singapore.
Why is Singapore a great place to set-up your regional headquarters?
1. Strategic Location
Singapore is situated at the heart of South-East Asia. South-East Asian countries are growing rapidly and are working to integrate their economies further through The Association of South-East Asian Nations (ASEAN).
2. Registering a New Business is Fast and Convenient
Registering a company is fast and can be done online. It’s only a matter of a few days if all requirements are met.
3. Business-Friendly Environment
Singapore is recognized as one of the most business-friendly countries in the world (2# by the World Bank). 100% foreign-ownership is allowed on all private companies. Infrastructures are great and the political system is stable which gives security to investors.
4. An Attractive Tax System
There are no taxes on dividends and capital gains. Corporate income tax is one of the lowest in the world at 17%, and multiple tax exemptions may apply.
How to start a business in Singapore?
1. Incorporation Requirements
- At least 1 Shareholder: can be 100% foreign, individual or corporate
- At least $1 Capital: can be in any currency
- A Company Secretary: looks after regulatory compliance
- A Local Resident Director: legal requirement to have a local director
- A Local Address in Singapore: legal requirement to have a local address
2. Company Registration with ACRA
Registration with ACRA is straightforward but you will have to comply with the submission of multiple documents and information including a company name, the details of the directors - shareholders - and company secretary, the company’s registered address, the articles of association, etc. If your submission is complete, you will receive the certificate of incorporation and the company's business profile in a few days.
3. Open a Business Account
You can open a business account with a traditional bank but the requirements and timeline can be discouraging. An alternative is to open a digital account with a neobank in a few hours like: Wise, Aspire, etc.
4. You are now Ready to Run your Business in Singapore!
To properly monitor your business performances and streamline the preparation of your financial statements, make sure to set-up clear bookkeeping and accounting processes.
You will have to comply with some annual filings including your Estimated Chargeable Income (ECI) and your Corporate Tax Return to the IRAS as well as your Annual Return to ACRA.
You will also need to monitor your obligations related to GST and the preparation of audited financial statements.
Proseso Consulting can help you with your company incorporation as well as with your accounting and financial requirements in Singapore. Do not hesitate to contact us!
Proseso Consulting - The Finance expert for growing and international businesses
For more information on our Financial And Advisory Services or if you have any questions on how you can outsource your admin and accounting functions, contact me directly at ninoy@proseso-consulting.com.
Proseso Consulting provides business advisory and finances managed services (bookkeeping and accounting, outsourced and automated payroll, tax compliance, financial reporting, etc.). We are here to help you achieve your long-term business goals!
Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.
Get in touch with our team at contact@proseso-consulting.com or visit us at www.proseso-consulting.com for more information about our services.
This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.