Singapore is a global business hub, renowned for its pro-business environment, low taxes, and strategic location in the heart of Southeast Asia. With its competitive tax structure and excellent connectivity to global markets, Singapore business incorporation is a key step for entrepreneurs looking to unlock unparalleled opportunities.
Incorporating your business here ensures access to a dynamic economy and positions your company for success. Looking to expand your business into one of the most business-friendly countries in the world? This guide simplifies the process.
Benefits of Incorporating a Business in Singapore
Incorporating your business in Singapore offers numerous advantages, from tax incentives to access to global market. Let’s explore the key benefits in detail.
Low Tax Rates and Incentives
Singapore’s tax system is among the most competitive globally, with a corporate tax rate capped at 17%. Businesses enjoy no capital gains tax, and income earned by foreign subsidiaries is exempt from local taxes.
Local companies benefit from partial tax exemptions, reducing effective tax rates to as low as 8.5% on the first S$300,000 of taxable income annually. Moreover, Singapore has Double Taxation Agreements (DTAs) with 62 countries, ensuring businesses are not taxed twice on cross-border transactions.
A Business-Friendly Environment
Singapore ranks consistently as one of the easiest places in the world to do business. Its efficient regulatory framework and streamlined incorporation process allow businesses to register within a day. The government provides extensive support, including grants and tax incentives, fostering a stable and predictable environment for companies to thrive.
The Heart of Global Trade
Singapore’s strategic location in Southeast Asia provides direct access to some of the world’s largest and fastest-growing markets. The Changi International Airport connects to over 330 cities worldwide, and the Port of Singapore, one of the busiest globally, links to 600 ports in 123 countries.
Also, companies can efficiently serve markets in China, Japan, Indonesia, and beyond while benefiting from Singapore’s unparalleled infrastructure.
A Talented and Productive Workforce
Singapore’s workforce is one of its greatest assets. The country’s exceptional education system consistently produces skilled and knowledgeable professionals, making it easy for businesses to find top-tier talent.
With English as the primary working language, communication is seamless, and the government’s open immigration policies allow companies to bring in specialized expertise when needed. This combination of local talent and global accessibility ensures businesses have the resources to thrive.
The Pre-Incorporation Requirements
Before diving into the incorporation process, it’s important to familiarize yourself with Singapore’s requirements for setting up a company. Let’s break it down step by step.
1. Choose a Company Name
The first step to incorporating your business is selecting and registering a company name with Accounting and Corporate Regulatory Authority (ACRA). To ensure approval, your chosen name must meet these criteria:
- It must not be obscene or offensive.
- It must not infringe on existing trademarks.
- It should not already be in use or reserved by another entity.
2. Shareholders, Directors, and Company Secretary Requirements
Every company in Singapore must meet these requirements:
- Directors: At least one director must be an 18 years of age Singapore resident (citizen, PR, or an Employment Pass holder) and in a full legal capacity.
- Shareholders: A minimum of one shareholder is required, with no cap on the maximum number for public companies (50 for private companies).
- Company Secretary: Appoint a company secretary within six months of incorporation. The secretary must be a resident and qualified under the Companies Act.
3. Prepare Registration Documents
To register with ACRA, prepare the following:
- Signed Consent to Act forms from directors and the company secretary.
- A Business Constitution (formerly Articles of Association).
- Identification and proof of address for all directors and shareholders.
Using a Singapore company incorporation service can simplify this step, as most registration documents are approved within 24 hours.
4. Registered Office Address in Singapore
Your company must have a physical office address in Singapore that is accessible during business hours. P.O. boxes are not allowed. This address will serve as the official point of contact for all communications and legal documents.
5. Company Registration with ACRA
Once your documents and company name are approved, the final step is registering with ACRA. For most businesses, this process takes less than an hour when done online. However, certain cases requiring further government review may take a few weeks.
Step-by-Step Guide to Incorporating Your Business in Singapore
Starting a business in Singapore doesn’t have to be complicated. By following these steps, you can ensure a smooth incorporation process and focus on growing your business.
1. Get Your Company Name Approved
Your company name isn’ts just a formality—it’s your brand’s first impression and a key element of your business identity. Beyond ACRA’s requirements, choosing a memorable and relevant name can help your business stand out and attract customers.
When brainstorming your company name, consider these tips:
- Relevance: Ensure your name reflects your business activities or values, making it clear what you offer.
- Memorability: Opt for a name that’s easy to pronounce, spell, and remember. This helps in branding and word-of-mouth marketing.
- Future-proofing: Choose a name that works for potential expansions or change in your business scope.
Once you’ve decided on a name, submit it to ACRA for approval. If your name includes restricted terms (e.g., “bank” or “law”), the review process may take longer, but once approved, the name will be reserved for 120 days, giving you ample time to proceed with the incorporation process.
2. Gather Your Incorporation Documents
After your company name is approved, the next step is to prepare your incorporation documents. These include:
- Approved company name
- Description of business activities
- Company Constitution (outlining your company’s structure and regulations)
- Particulars of directors, shareholders, and company secretary
- Proof of registered office address
Your Company Constitution is especially important, as it governs how your business operates and protects shareholder rights. Ensuring accuracy in these documents is critical for a smooth registration process.
3. Register Your Company with ACRA
Once your documents are ready, head to the ACRA website to officially register your company. The process is conducted online and typically takes less than an hour. You’ll need to pay a fee of S$315, which includes:
- S$15 for the name application fee
- S$300 for the incorporation fee
In rare cases, ACRA may request additional information from your shareholders or directors. Once this is resolved, you’re ready to move forward.
4. Receive Your Certificate of Singapore Business Incorporation
After successful registration, ACRA will issue a Certificate of Incorporation. This legal document confirms that your company has been incorporated and is ready to operate in Singapore. With your certificate in hand, you can now:
- Apply for any necessary business licenses (e.g., law, medicine).
- Open a corporate bank account.
- Register for Singapore Goods and Services Tax (GST) if your annual revenue exceeds S$1 million.
- Register with Singapore Customs if you’re involved in importing or exporting goods.
- Display your ACRA registration number on all official documents like letterheads and invoices.
- Apply for work visas if you or your team members are foreign nationals.
Breaking Down the Costs of Business Incorporation in Singapore
Incorporating your business in Singapore involves more than just a registration fee. While the government fee is S$315, there are other costs to consider:
- Registered address: A physical office address in Singapore is mandatory, adding rental cost to your expenses.
- Company secretary: Appointing a qualified company secretary is required and usually costs S$500 to S$2,000 annually.
- Nominee director (if needed): Hiring a local nominee director can cost S$2,000 to S$5,000 annually.
- Additional services: Depending on your business needs, you may need legal, accounting, or consulting services.
In total, setting up your business can cost anywhere from S$5,000 to S$8,000, depending on your specific requirements. For a clearer breakdown tailored to your situation, it’s a good idea to consult a professional service provider.
Staying Compliant After Incorporation
After setting up your company, you need to maintain compliance with Singapore’s regulations to keep your business running smoothly. Here are the essential post-incorporation requirements to fulfill.
1. Meeting Annual Filing Requirements
Keeping your company in good standing starts with meeting annual filing obligations. Here’s what you need to know:
- Annual General Meeting (AGM)
Your first AGM must be held within 18 months of incorporation. Subsequently, you need to conduct AGMs annually, with no more than 15 months between meetings. AGMs provide a platform to review financial statements, appoint auditors, and address key business matters.
Private companies can opt out of AGMS by passing written resolutions on key matters, provided they include these resolutions in their annual return filings.
- Annual Return
Filing your annual return is mandatory and must be done via ACRA’s BizFile+ Portal. For non-listed companies, the deadline is seven months after the financial year-end, while listed companies have five months to file. The return must include your company’s financial statements and a declaration of compliance with regulatory standards.
- Financial Statements
Companies must prepare financial statements in accordance with ACRA’s accounting standards and submit them with their annual returns. Exemptions may apply for smaller entities, so check your eligibility.
2. Fulfilling Accounting and Auditing Obligations
Maintaining proper accounting records is vital for compliance and informed decision-making. Businesses have two options: hire an in-house accountant or outsource to a professional firm. These records should support financial reporting, tax filing, and strategic planning.
You can consider using cloud-based accounting software for ease of access and real-time insights.
3. Audit Requirements
Most companies qualify for audit exemptions. However, an audit is required if your business meets any of the following conditions:
- Annual revenue exceeds S$10 million.
- Total assets exceed S$10 million.
- Your company has more than 50 employees.
If your company requires an audit, appoint an auditor within three months of incorporation.
4. Filing Corporate Taxes
Corporate tax filings are a critical part of post-incorporation compliance. Here’s what to keep in mind:
- Submit Estimated Chargeable Income (ECI) within three months after your financial year-end.
- File Form C-S/Form C by 30 November (or 15 December for e-filing).
- Pay any tax due within one month of receiving your Notice of Assessment.
Accurate and timely tax submissions not only keep your business compliant but also enhance your reputation with Singapore’s tax authorities.
Tip: Engage a corporate secretary to ensure proper filing and timely submissions.
Overcoming Common Challenges in Incorporations
Even in a business-friendly environment like Singapore, challenges can arise during and after incorporation. Here are some common issues and solutions:
1. Issues with Name Reservation
Delays can occur if your proposed company name conflicts with existing names, includes restricted terms, or infringes on trademarks. To avoid these complications, it’s crucial to conduct thorough research using tools like ACRA’s BizFile+ portal. Ensuring your chosen name complies with regulations and is unique can save valuable time and effort.
2. Misunderstanding Compliance Obligations
Businesses may struggle with meeting filing deadlines or navigating regulatory requirements. This can result in penalties and operational disruptions. Engaging a professional corporate service provider can be an effective way to ensure all obligations, such as annual returns and tax filings, are met accurately and on time. Staying organized and proactive helps maintain compliance and keeps your business on track.
3. Finding Local Directors
For foreign-owned businesses, appointing a local director is a legal requirement that can sometimes be difficult to fulfill. Fortunately, there are several ways to find eligible individuals, such as using the ACRA BizFile portal, the Singapore Companies Register, or reputable online business directories. Alternatively, you can engage a nominee director service to meet this obligation.
How Professional Services Can Help Your Singapore Business Incorporation
Professional service providers play a crucial role in simplifying the Singapore business incorporation process, especially for entrepreneurs unfamiliar with Singapore’s regulatory framework. Here’s how they make your journey easier:
1. Time-Saving Benefits
Incorporating a company involves multiple steps, from reserving a name to filing documents and ensuring compliance with legal requirements. Professional services take over these responsibilities, allowing you to focus on building your business. Their expertise ensures that each step is completed efficiently and accurately.
2. Ensures Compliance with Singapore Laws
Singapore has strict regulatory requirements, and failing to meet them can lead to fines or delays. Professional service providers ensure your business complies with all laws, including filing deadlines, tax obligations, and ACRA regulations. Their knowledge reduces the risk of mistakes that could derail your incorporation process.
3. Various Services Offered by Professional Service Providers
Professional services often provide end-to-end support, including:
- Name Reservation: Ensuring your chosen company name meets ACRA’s requirements and is approved quickly.
- Tax Compliance: Helping with corporate tax filings and advising on tax-saving opportunities.
- Secretarial Services: Appointing a qualified company secretary to handle corporate governance matters.
Engaging professional services is an investment in your company’s long-term success, ensuring a smooth start and continued compliance with Singapore’s business laws.
How One Tax CM Can Simplify Your Singapore Business Incorporation Process
When it comes to Singapore business incorporation, having the right partner can make all the difference. One Tax CM specializes in providing comprehensive support for entrepreneurs and businesses in Singapore, ensuring every step of the process is seamless and stress-free. Then, what are the advantages of One Tax CM?
1. Comprehensive Incorporation Services
One Tax CM offers expert guidance throughout the incorporation process to make everything seamless. From assisting with company name registration to ensuring it meets regulatory requirements, to preparing and submitting incorporation documents accurately, our team handles the details so you don’t have to.
Also, we can help you to choose the most suitable business structure, tailoring our advice to fit your company’s unique needs and goals. This comprehensive support ensures that your business is built on a solid foundation from the very start.
2. Post-Incorporation Support
This journey doesn’t end with incorporation. One Tax CM extends its support by providing essential post-incorporation services to help your business thrive. We offer corporate secretary services, ensuring that compliance and governance matters are professionally handled.
Additionally, we take care of your company’s obligations under ACRA’s regulations, from managing annual filings to maintaining accurate records. With their expertise, you can focus on growing your business while staying fully compliant with Singapore’s requirements.
With One Tax CM, you can rest assured that your business is set up for success, with ongoing support to navigate Singapore’s dynamic regulatory landscape. So, are you ready to start your business journey?
Let One Tax CM handle the complexities while you focus on growing your vision. Visit One Tax CM today to kickstart your incorporation process and set your business on the path to success!