The World Bank ranks Singapore on the first place for its ease of doing business and tax filings. It has been in the top 5 ever since. The report states that it takes only 3 days for a new company to start its processes after completing the paperwork. This is a dream come true for businesses who mostly face teething problems the maximum, while starting out.
The World Bank report ranks even US on the 64th position on the parameter of the ease of paying taxes. Singapore not only has easy tax filing processes but also start-up friendly laws and tax benefits. It even has a flexible immigration policy for foreign nationals.
If you’re planning to set up a business in Singapore, you can do so in 3 basic steps.
1. Business identity
Though other options exist, it is better to register your company with the Accounting and Corporate Regulatory Authority (ACRA) as a private limited company. There are many advantages to individual companies including tax benefits and ease of business. Besides if you’re a new private limited company you as a shareholder are not liable to compensate for losses and debts more than the liability of the share capital. Your company will get tax benefits but it is recognized as a taxable entity from the first day of incorporation.
If you’re using the services of an agency to incorporate your business, there are less chances of bungling up during the process. Company secretarial services in Singapore can get you through the entire process seamlessly. If you’re interested you can get more details here for your business needs.
2. Set up the company
There are a few prerequisites for new companies who are private limited. The laws pertaining to these ccompaines are governed by Singapore Companies Act. Companies must follow all laws stated by ACRA and Inland Revenue Authority of Singapore (IRA). When you start your company, the basics you must have are
- Company name – It must be approved by ACRA
- Shareholders- You must have at least 1
- Directors – At least one director must be a resident of Singapore
- Company secretary – Must be a resident of Singapore
- Paid up capital – The minimum paid up capital can be S$1
- Registered address – You must have a physical office address
After acquiring these details, you must purchase a business profile from ACRA which has all these details along with your registration number (UEN). Your business profile will enable to open a bank account and apply for licenses and permits.
3. Get a bank account
After incorporation, open a bank account in any bank at your discretion.
There are many other post registration licenses and permits that you’ll need to acquire. Employing an agency to help you with these would be a good idea because you may miss one of these. Licenses and permits from the government to undertake certain business activities, registered office hours, registration number, customs registrations if your company is involved in importing and exporting, good and services tax registration, and registration with the Central Provident Fund are just a few more documentation you need to acquire. It is easy because of the streamlined processes, however, take help to save time and effort.