A look at Company Setup in Singapore

Setting up a company in Singapore is a good position. This country provides an environment that is very friendly for new businesses. There is not doubt that the World Bank Report graded Singapore as the number one country in terms of the doing business in the year 2007 and 2008. Singapore is also the second most competitive country in the world.

So it’s easy to see that doing business in Singapore is a great prospect for any overseas establishments. While it is great, take note that there are rules and regulations that you might want to know when forming a local company in Singapore.

Company Incorporation Singapore - The basic conditions

Here are a few conditions:

- Anyone can register a new company in Singapore, applies to both locals and non-locals

- Singapore allows 100% foreign ownership

- Paidup capital of one dollar is approved

- Minimum of 1 director and 1 shareholder is required

- There must have at least one local director

- The company must have a Singapore registered address

- Company secretary is a requirement

What are the benefits

Here’s one great benefit: The government offers ZERO coporate tax for the initial $100,000 profits for fresh set ups. This benefit will be enjoyed for up to three years. This is a very competitive benefit that most overseas establishments enjoy.

The corporate tax is also very enticing: 8.5% tax for up to $300,000 profits and 17% for profits above that. The coporate tax rates are competitive, which pushes many overseas establishments to start their local presence in Singapore.

The need for company secretary

Here’s one thing that you must take note: the company must appoint a local, qualified company secretary. Many company usually don’t hire a full-time secretary and is usually outsourced to a professional secretarial services company.

So, it is important that the company must find and appoint a professional and qualified company secretary. Fortunately, there are a number of professional and capable company secretaries in Singapore so it shouldn’t be too hard to look for one.

The wrap-up

Forming a Singapore company is a wise choice for most overseas companies. The new company will not only receives tax exemptions, you get a good pool of local talents.