Early Company Incorporation in Singapore Gives You An Edgeby Leslie S. Professional Content Writer
Entrepreneurs are always on the lookout for a jurisdiction, which will make it easy for them to do business. They look for low tax rates, protection for their business ideas from copy cats, and comparatively easy compliance.
It is the reason why they opt for company incorporation in Singapore. The country ranks 2nd in the 'Ease of Doing Business' indicator in the report compiled by the World Bank.
The company incorporation Singapore, by design, is an easy process. If you have the right documents, you, as a local or foreigner, can easily accomplish it within 1-3 days. Registering a sole proprietorship takes even less time.
However, business owners mostly go for private limited company registration. This is a dynamic business or legal structure that scales well with a growing business. It has its benefits. Let us know more about it.
Private Limited Company Registration
Entrepreneurs, whenever possible, try to minimize risk and their liability. A private limited company (Pte Ltd) is the right tool for doing so. Most importantly, anyone over the age of 18 years, locals and foreigners, can incorporate a company in Singapore.
Foreigners get to enjoy complete ownership of their company. However, they cannot self-register a Singapore company. They need to appoint a registered filing agent for the task.
Liability: This business structure limits shareholders' liability to the amount invested in its capital. It means their personal assets remain safe, even if the business incurs losses.
Corporate Tax: The company pays corporate tax on its taxable income. The tax ranges from 0%-17%; however, in practice, the majority of companies in Singapore pay 8.5%-9.5% in first three years due to some tax exemptions given for all the newly incorporated companies for first three years .
Tax Exemption: Singapore runs a tax exemption scheme for the startups. For the first 3 years, startups get 75% of tax exemption on their first $100,000 of taxable income. Next, $200,000 gets 50% tax exemption.
Credibility: Private limited companies have a more credible image than that of Sole Proprietorship and Partnership. It means they can easily raise capital for their expansion. Banks and financial institutes also consider them more eligible for a business loan.
Perpetual Existence: A Pte Ltd exists perpetually and independent of its shareholders. It means the demise of a shareholder or change in the ownership of company shares does not affect its existence.
Key Facts About Singapore As a Business Hub
- Ranks at 1st position as the most competitive economy as per IMD World Competitiveness Ranking 2020
- Ranks at 2nd position for 'Ease of Doing Business' in 2020
- Ranks 5th in the list of the large financial center in 2020
- Ranked "above average" for matters related to human resources and payroll 2020
- Ranks at 2nd Globally, for talent competitiveness, INSEAD's Global Talent Competitiveness Index 2019
- Ranks 2nd most connected country as per DHL Global Connectedness Index 2019
- Speedy company incorporation in Singapore
Entrepreneurs who want to relocate to Singapore after the private limited company registration, pay attention to its secure social environment, availability of mass rapid transport system, advanced communication networks, world-class infrastructure, and excellent education system. They also benefit from the professional air, and sea links that Singapore has with the prime cities spread all over the world.
Created on Sep 22nd 2020 09:16. Viewed 495 times.