COMPANY ESTABLISHMENT IN SINGAPORE

Why Singapore is considered as a country with lots of strongly developed potential for start – ups and attracts massive foreign investments, could be demonstrated through these following reasons:

Open-door policy and living conditions: Singapore encourages and facilitates educated and professional individuals to immigrate and work here. Besides, Singapore provides the best education, healthcare and infrastructure services, which is a great advantage to attract international investors.

Ideal business environment: Singapore’s government has shown their spirit of investing encouragement into Singapore clearly through their legal system as well as company establishment procedure via online registration portal without taking much time and difficult techniques for a company to be founded in Singapore.

Open legal system, especially the best tax system in the world: One of the advantages of company establishment in Singapore is tax policies on personal income and corporate income. Personal income tax in Singapore is calculated based on rate, starting from 0% to 20% for income above 320,000 USD/year. Meanwhile, this rate is 35% in Thailand and 28% in Malaysia with the same income. Likewise, corporate income tax rate for Singapore private limited companies whose profits over 300.000 USD/year is under 8.5% and capped at a flat rate of 17% for those companies that profit above 300.000 USD/year. There is no investment profit tax in Singapore. Regarding corporate income taxed, shareholder’s dividends shall not be taxed as personal income. In addition, Singapore maintains the world’s lowest Goods and Services Tax (GST) (7%), below the average VAT/GST rate of the globe, which is 16,4% and the Asia-Pacific average of 10,5%.

THÔNG TIN CẦN BIẾT KHI THÀNH LẬP CÔNG TY TẠI SINGAPORE

ESSENTIAL INFORMATION WHEN SETTING UP A BUSINESS IN SINGAPORE

Đối với công ty: có 3 dạng thành lập công ty tại Singapore mà quý doanh nghiệp có thể cân nhắc lựa chọn như sau: thành lập công ty con, thành lập chi nhánh hoặc văn phòng đại diện

To company: there are 3 types of corporate in Singapore to consider: establishing subsidiary, branch or representative office.

To individuals: there are two types of business frequently applied: Company Establishment + Nominee Director or setting up a company + Employment Pass or Entrepreneur Pass.

Vietnamese investors usually choose Company Establishment + Nominee Director so that IP Leader would like to detail requirements as well as conditions for setting up a business under this form, specifically as follows:

Company name: searching before proceeding with the establishment and Company name could not be coincided or confused with company name registered earlier.

Shareholder: Quantity of shareholders is not more than 20 and none of them is a legal entity.         

Nominee Director is Singaporean (Nominee Director): This person shall have no right to interfere in the business direction of clients but be capable of legal responsibility for company’s acts so that his/her authority and obligation would relate directly to company. If clients have intention to live and work in Singapore, you could apply for an Employment Pass or Entrepreneur Pass in order to operate and manage a business on your own. IP Leader shall provide Nominee Director Service to represent Client setting up a company in Singapore through Nominee Contract.

Charter capital: According to Singapore’s Regulation, the minimum charter capital is 1 SGD and there is no control of the maximum charter capital or legal capital. It is also unnecessary for clients to implement notification of capital contribution procedures.

Company address in Singapore: It is compulsory to possess a registered business address in Singapore, Client could rent an office for commercial operation and use this address for registering business address or any addresses in Singapore through acquaintances. IP Leader provides Clients address leasing services for company establishment via Hiring Contract.

Designated Secretary: It is mandatory to have a designated secretary who is a Singaporean. This secretary is responsible to maintain documents, files and company regulation following the law, … IP Leader offers Secretary services to set up business in Singapore via Service Agreement.

Auditing: Performing Audit is required for companies whose annual revenue exceeds 5 million SGD.

Open bank account: Unlike Hongkong, the procedure of opening a bank account, which is quite simple and easy, is to deposit a certain amount of money depending on the requirement of each different bank. The minimum deposit rate is 500 USD for USD account and 300 SGD for SGD account.

Company establishment time in Singapore: 03 days since the date of supplying valid documents sufficiently.Company set-up fee and maintaining business fee annually: Please contact IP Leader’s Lawyers for detailed quotation