Articles

4 Myths about Singapore Company Registration Busted

by Sneha Patil Top Singapore Company Registration Company

Singapore has increasingly become a popular business destination for the entrepreneur aspirants across the globe because of the plenty of benefits it has to offer. Every year, the city-state witnesses a massive influx of aspirants wishing to set up their business on its soil. However, some of the myths about Singapore company registration hold many of them back from taking the final plunge. It is good to see the smart and wise entrepreneurs successfully turning their business ideas into a fortune by giving a deaf ear to that false beliefs.

This article excerpt is trying to throw lights on those myths about company registration Singapore.

1#

Myth: Company Registration Singapore is Complex & Time-Consuming

Reality: The Accounting & Corporate Regulatory Authority (ACRA) monitors the process of company registration in Singapore. It takes only two steps to accomplish the process- 1) Company Name Reservation and 2) Company Registration (filing of application form).

The entire procedure has been computerized, and applicants can use the ACRA’s portal or on-premises kiosks to get the job done. It is fast, simple and straightforward. There is very minimal involvement of bureaucratic hurdles. It is one of the easiest incorporation processes in the world.

It would not take much time as long as your application fulfills all the prerequisite conditions of the authorities. Now you can realize how wrong it is to regard Singapore company registration as a complex and time-consuming task.

2#

Myth: Foreign Individual or Entity Cannot Become Shareholder of a Singapore Company.

Reality: Any foreign individual or entity can hold 100% shares in the newly setup company in Singapore. There is no restriction on 100% foreign shareholding. One can become a shareholder of a company without taking any prior permission from the local authority. Both individual or entity can be the shareholders of Singapore company. As per the law, there should be minimum 1 and maximum 50 numbers of shareholders in private limited company in the city-state. A director can also become a shareholder.

3#

Myth: Incorporation Cost is Pricey

Reality: The cost of Singapore company incorporation is deemed to be inexpensive and cheaper than in many other developed jurisdictions. The registration fees of ACRA is just S$300+ S$15 (company name registration). There are no continuing fees. Many firms are offering all-inclusive assistance to their client looking for opportunities to establish their bases in the city-state at very affordable rates. The professionals of such firms will prepare all your paper works and apply for registration on your behalf. A to Z of company incorporation worries will be handled by them, and thus, it is worth to invest the amount to make the experience hassle free.

4#

Tax Rate for Singapore Company in High

Reality: It would be a huge blunder to say the corporate tax rate of Singapore as high. The Republic is highly acclaimed for its progressive tax system and low tax rates. The headline corporate tax rate is just 17%. And, a private limited company is a highly tax-efficient structure. There is no capital gains tax and the dividend earned by the shareholders are not taxed.

A newly incorporated company in Singapore can enjoy full tax exemption for first three years of incorporation if its annual revenue is less than S$100,000. In fact, both the new and existing companies with annual turnover ranging between S$100,000 to S$300,000 can pay their tax at the rate of 8.5% under the scheme of partial tax exemption. The headline tax rate of 17% will be applicable for the businesses whose turnover exceeds S$300,000. The effective tax rates of Singapore jurisdiction are low than in many other jurisdictions. This factor appeals many entrepreneurs to set up their company in Singapore.

It is worth noting that all companies incorporated under the local jurisdiction is considered to be a tax resident of Singapore and they are entitled to all the tax benefits. The subsidiaries of foreign companies are also counted as the local tax residents of Singapore.

Do not let these myths ruin your dream of incorporating a company in Singapore. Luckily, the city-state offers endless opportunities to both new and established entrepreneurs to grow and expand their business. Make sure to leverage the benefits of Singapore company registration to give the wings to your dream of entrepreneurship.

Bio/About Us:

SBS Consulting Pte. Ltd. is a renowned incorporation specialist based in Singapore. The firm has been offering unmatched company registration services to entrepreneurs from all parts of the world.


Sponsor Ads


About Sneha Patil Advanced   Top Singapore Company Registration Company

61 connections, 0 recommendations, 170 honor points.
Joined APSense since, February 7th, 2017, From Singapore, Singaore, Singapore.

Created on Aug 28th 2017 00:45. Viewed 753 times.

Comments

No comment, be the first to comment.
Please sign in before you comment.