Singapore is a popular destination for businesses looking to expand their operations in Asia. Setting up a company in Singapore can provide many advantages, including a favorable business environment, strategic location, and a highly skilled workforce. However, before incorporating your business in Singapore, it’s essential to understand the legal and regulatory landscape. In this blog, we will discuss the legal and regulatory framework for incorporating a company in Singapore.
Types of Business Entities
In Singapore, several types of business entities can be incorporated, including sole proprietorships, partnerships, limited liability partnerships (LLPs), and private limited companies (PLCs). The most common type of business entity in Singapore is the private limited company, which provides limited liability protection to its shareholders.
To incorporate a company in Singapore, the following registration requirements must be fulfilled:
Company name: The company name must be approved by the Accounting and Corporate Regulatory Authority (ACRA).
Shareholders: A private limited company must have at least one shareholder who can be an individual or a corporate entity.
Directors: A private limited company must have at least one director who is a resident of Singapore.
Company Secretary: A private limited company must appoint a company secretary within six months of its incorporation.
Registered office: A private limited company must have a registered office address in Singapore.
Memorandum and Articles of Association: The Memorandum and Articles of Association must be submitted to ACRA.
Legal and Regulatory Landscape
Singapore has a well-developed legal system and a transparent regulatory framework. The city-state’s legal system is based on common law, which provides consistency and certainty for businesses. The regulatory framework is designed to promote a business-friendly environment and protect the interests of companies and their shareholders.
Singapore has a competitive tax regime, with a corporate tax rate of 17%. The city-state also offers various tax incentives and exemptions to businesses, including a full tax exemption on the first S$100,000 of taxable income for the first three consecutive years. In addition, Singapore has a network of double tax agreements with many countries, which helps to avoid double taxation on income.
Incorporating a company in Singapore can provide many advantages for businesses, including a favorable business environment, strategic location, and a highly skilled workforce. However, before incorporating your business in Singapore, it’s essential to understand the legal and regulatory landscape. Singapore has a well-developed legal system and a transparent regulatory framework, providing businesses with consistency and certainty. In addition, the city-state has a competitive tax regime and offers various tax incentives and exemptions to businesses.