How Do I Have to Register my Company Name?
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Company name registration Singapore is one of the promising ways to start a business in Asia. The Republic of Singapore is one of the Four Asian Tiger Countries that have shown very high rates of economic development. The city-state is located in Southeast Asia and borders Malaysia and Indonesia.
Among the main advantages of the process of registering a company name in Singapore:
- The stable economic and political situation
- One of the world’s recognized financial centers
- Short terms of establishing a company in Singapore
- Favorable business environment
- High level of confidentiality
- Minimum requirements for the authorized capital
- It is possible to register a company in Singapore remotely
- Easy business start-up
The republic is one of the key financial centers. A large number of major Asian financial institutions have chosen jurisdictions to host their offices and headquarters. The country is known for its reliable and well-developed banking infrastructure, which is also of interest to entrepreneurs who intend to start a business in Singapore. Moreover, it is worth noting that the legislation of the jurisdiction provides for tax exemptions for new companies (subject to certain conditions).
How do I register a new company name?
If you have decided on company name registration in Singapore, please note that the main regulator and body that oversees company registration is the Accountancy and Corporate Regulatory Authority (ACRA). Business regulation in Singapore is subject to the requirements set out in the Companies Act.
Often, foreign entrepreneurs prefer to open a company in Singapore in PTE Ltd, which is the most popular in this jurisdiction. However, business types such as partnerships, LLPs, and dealerships are also available.
You must meet the following legal requirements to register a company name online in Singapore:
- Submit the required package of documents.
- Choose a unique name for the company that contains the designation of the organizational and legal form.
- Provide proof of having a local registered office.
- The company must have at least one shareholder. At the same time, 100% foreign ownership is allowed.
- The minimum capital required is 1 SGD.
- A minimum of 1 local director and secretary are also required.
- Legal entity shareholders are allowed.
Suppose you have decided to register an LLP in the Republic of Singapore. In that case, it is also worth considering that you will need to obtain a business license to carry out certain types of activities. In Singapore, a special ACRA system has been developed, which notifies the founders of the need for licensing when creating a company.
The documents required to establish a company in Singapore vary depending on whether the founder is an individual or a legal entity. First of all, individuals must provide documents confirming their identity and proof of address. For company name registration Singapore, legal entities should prepare a package of documents that includes:
- application for registration of a Singapore company
- copies of passports of founders and beneficial owners
- charter, memorandum
- description of the planned activity
- confirmation of the presence of a local office
- selected name for the company
Process of registering a company name taxation
How much is it to register a company name? Companies are taxed on their income from the country when it arises and on income derived from foreign sources when it is transferred to Singapore. Non-residents are subject to withholding tax (WHT) on certain types of income (e.g., interest, royalties, technical service fees, rent of the movable property). For those who intend to register a company name online in Singapore, it is essential to consider that corporate income tax is levied at a flat rate of 17%.
Partial Tax and Startup Tax Exemptions are available for three years for select startups. However, such incentives do not apply to investment holding companies.
Goods and Services Tax (GST) is levied at a rate of 7% on the supply of goods and services produced in Singapore by a taxpayer in the course of their business. In 2018, it was announced that this rate would increase to 9% between 2021 and 2025. However, in the 2020 budget, it was announced that the GST rate would remain at 7% for 2021. There is no exchange control.
The procedure for registering a company in Singapore is as follows:
- First, pay the registration fee to a professional agency.
- Choose a name for your new company.
- The agency will verify the name in Singapore.
- Submit a copy of your passport, an official copy of proof of address (such as a utility bill), and fill out a questionnaire with standard questions such as your address, passport number, and the names of directors and shareholders.
- In the case of a company with a simple structure, the documents required above will be sufficient for the agency to prepare the necessary documents for the company’s registration and send them to you by e-mail for signature unless you have special requirements.
- Upon receipt of all originals of the signed constituent documents, including a certified copy of the passport and proof of address through an international courier service, the agency will proceed to establish a company on the Internet.
- The duration of the entire process (from collecting documents to the online constitution) should be approximately five working days.
Benefits of starting a company in Singapore
Singapore is a safe and business-friendly environment supported by a respected government with transparent and consistent policies that protect companies’ physical and intellectual property investments.
There is minimal bureaucracy for doing business in Singapore, and it is one of the least corrupt countries in the world. In addition, it has a well-developed infrastructure that meets all the needs of the business industry and is considered one of the best countries in the world for this purpose.
Singapore is the ideal location for global corporate headquarters. The massive investment makes Singapore one of the most competitive countries in Asia and one of the simplest places in the world to do business.
If you locate your international headquarters in Singapore, your company will benefit from the following:
- Singapore has a low corporate tax rate compared to other leading economies in the world. The company is taxed at a flat rate on taxable profits, and since 2009 (YA 2010), corporate tax has been reduced to 17%. In addition, there is no capital gains tax in Singapore.
- All Singapore-based startups that are eligible for a comprehensive Singapore tax exemption plan (check with your agency for specific conditions required for this) will not pay any taxes on the first $100,000 of taxable income for the first three years and 50% of the tax amount. The current corporate tax rate on the next $200,000 of taxable income.
- Singapore’s network of over 50 double tax treaties.
- Numerous Singapore Free Trade Agreements and Investment Guarantee Agreements.
- Protecting your ideas and innovations with Singapore’s strict adherence to intellectual property laws.
- Government financial assistance has enabled many initiatives and programs to be launched that allow new entrepreneurs to gain access to capital or funding. These financing initiatives include cash grants, government aid financing plans, company incubator programs, and debt financing plans.
Disadvantages of starting a company in Singapore
If you are asking yourself the question, do I have to register my company name; you also need to be aware of the disadvantages of Singapore. Singapore is channeling its local workforce into higher value professions such as finance, biochemistry, and industrial engineering through education and advocacy. However, this creates a shortage of human resources in the hospitality, restaurant, tourism, and retail sectors.
The only way to fill this void is to accept the influx of immigrants willing to work in such positions. Unfortunately, the law of supply and demand imposes higher fees on foreign workers, thereby increasing labor costs for small companies.
Apart from high labor costs, land prices in Singapore are high due to the very limited size of the country and the strategic location of the port. Therefore, buying and renting land in Singapore is an expensive pleasure.
Renting an office, building a semiconductor manufacturing plant, or even renting a warehouse space can be expensive compared to other neighboring Asian countries.
Singapore has no natural resources and is heavily dependent on imports of raw materials and finished products from other countries; this increases living costs and food prices, increasing overall costs.
How much is it to register a company name?
How do I register a new company name? First of all, choose the option of registering a company in Singapore:
- 1. Local Entrepreneur
- 2. Non-relocating Foreign Entrepreneur
- 3. Foreign Entrepreneur With a Work Permit
This option is suitable for entrepreneurs who want to set up a country and have their resident director in Singapore.
This option is suitable for foreign entrepreneurs who want to open an offshore company in Singapore but do not plan to move there. In this case, you’d better register your company name online.
This option is suitable for foreign entrepreneurs or professionals who want to set up a company in Singapore and relocate there to conduct operations. You must have a degree and/or work experience related to starting a business and apply for a work permit.
- Company registration services will cost from 900 to 963 US dollars.
- Company Secretary (per year) – 800 dollars.
- Legal address (per year) – $500-535.
- Opening a bank account in Singapore – $500.
- Nominee Director (per year) – $500-2000.
- Work permit – USD 2,500.
- The cost of setting up a company is $2,700- $ 7,700.
A Singapore company must prepare management accounts and submit an audited report to the National Revenue Agency of Singapore (IRAS) once a year.
The first tax return will be issued by IRAS 18 months after the registration of the company. A decent agency will also offer you accounting, auditing, and tax services. There is a charge for this service, and prices may vary depending on the number of invoices you issue.
Do I have to register my company name? By the current regulatory framework, enterprises must:
- be audited annually
- hold meetings of shareholders at least once a year
- keep accounting following the Companies Law
Please also note that electronic filing is available for registering a company in Singapore. You can contact specialists who will provide personal advice on the regulation of activities in Singapore. Experts will provide the necessary information on the requirements for the establishment of each organizational and legal form and provide support at all stages of establishing a business in Asia.
How much does it cost to register a company in Singapore?
Why do companies register in Singapore?
Can foreigners register a business in Singapore?
How do you check if a company is registered in Singapore?
Can I run a business without registering?
How do I register for Acra?