Singapore is a strategic location to many international companies that operate their businesses here. According to a report, Singapore is ranked as the world’s easiest place to do business.
It takes just a fast one to two days to start a business in Singapore – Fast, easy and hassle free.
The process to start a business can be summarised in 3 simple steps:
1. Choose Your Business Entity.
Due to its scalability, many new companies register with the Accounting & Corporate Regulatory Authority (ACRA) as “private limited companies. Furthermore, shareholders are not liable for debts and losses beyond their share capital as a Private Limited Company has a separate legal entity.
2. Set Up Your Company
Private limited companies are governed by the Singapore Companies Act and must comply with the laws under ACRA and the Inland Revenue Authority of Singapore (IRAS).
Requirements for Singapore Residents:
• 1 shareholder
• 1 Resident Director
• 1 Company Secretary
• Minimum paid-up capital of S$1
• Singapore Registered Office Address
Requirements for Foreign Individuals:
• I shareholder
• 1 Resident Director
• Minimum paid-up capital of S$1
• Local Registered Office Address
You may purchase a Business Profile from ACRA, which is an electronic report details of information regarding your business, such as your business registration number, registration dates, shareholders and so on. This profile will be required to open a corporate bank account and apply for any licenses or permits.
3. Open a Corporate Bank Account
After incorporation of your business, you may open a bank account from a variety of local and international banks in Singapore.
If the projected annual revenue exceeds SGD 1 million, your company must register for the Goods and Service Tax (GST). You will need to charge this tax (currently at 7%) to your clients on the goods and services provided and in turn, remit this amount to the tax authorities. GST registration is not mandatory if your company’s annual turnover does not exceed S$1 million.
Once your company has been incorporated, the Singapore Companies Act mandates certain annual filing requirements and formalities such as financial statements, estimated chargeable income, Annual General Meeting, Annual Return and Annual Tax Return.
While these services can be handled on your own, it would be beneficial to engage a professional services firm to save you time and resources. Find out more about One Bizhub’s Company Incorporation Services here.