Friday, November 3, 2017

What You Should Consider Before You Register A Singapore Company

What You Should Consider Before You Register A Singapore Company
Singapore is one of the fastest growing countries in Asia in terms of popularity in the business world. More importantly, the benefits of setting up your own company in Singapore are seamless. But don’t get too excited yet, there are some vital aspects of the business that you need to take note before starting up your own company in Singapore, they are as follows;

- Company Name. Before your company could be incorporated, you must have a company name that should have been approved by the proper authorities.

- Shareholders. A minimum of 1 and a maximum of 50 shareholders are required for a Singapore company. A director and shareholder can hold such position at the same time. The shareholder can be a person or another legal entity such as another company or trust.

- Paid-up Capital.
In order for a Singapore company to be registered, it must have a minimum paid-up capital of S$ 1. This paid-up capital (also known as share capital) may be increased anytime after the incorporation of the company.

- Directors. Your company must have at least one resident director. This requirement is mandatory. A resident is defined to be a Singapore Citizen, a Singaporean Permanent Resident, or a person who has been issued an Entrepass, Employment Pass, or Dependent Pass. There is no limit as to the maximum number of directors, whether local or foreign. Directors must be at least 18 years of age and must not be bankrupt or convicted for any malpractice in the past. There is no requirement for the directors to also be shareholders, thus, non-shareholders can be appointed directors.

- Company Secretary.

Within 6 months of its incorporation, a company must appoint a qualified company secretary. In case of a sole director/shareholder, the same person cannot act as the company secretary. The company secretary must be a natural person and must be a resident of Singapore.

- Registered Address. A local Singapore address must be provided as your company’s registered address in order for your company to be registered. This registered address must be a physical address (can be either a residential or commercial address) thus a PO Box is not a qualified registered address.

Taxation. Attractive tax exemptions and incentives await every Singapore registered company. For the first S$ 300,000 annual profits, your company needs to pay less than 9% and a flat rate of 17% flat thereafter. There is no capital gains or dividend tax in Singapore. These excellent tax benefits in Singapore are one of the key reasons why investors from around the world prefer to form a company in Singapore.

All of the above-mentioned concepts are basic details that will serve as your guideline in starting to have your own company incorporated in Singapore.