Setting Up a Business in Singapore in 2021

by Leslie S. Professional Content Writer

The business owners opt for private limited company registration in Singapore. They favour this business structure as it limits their liability to the amount they have invested in its shares. Here is a 2021 registration guide.

Though its owners have to observe strict compliance with the statutory regulations, a private limited company reaps benefits. It enjoys lower company tax rates, tax exemption schemes, credibility, and easy access to funds for its growth.

Singapore Private Limited Company Registration

If you are contemplating a Private Limited Company Registration in 2021, appointing an experienced provider of Singapore company registration services can lighten your workload. They can make it a hassle-free experience for you, allowing you to start your business activities quickly.

Your provider or agent can assist you in forming your company within 1-3 days once you have fulfilled all mandatory due diligence. They are authorised to communicate with ACRA, the Singapore’s Companies Registry and submit the necessary documents and pay the official fees.

Singapore company registration process is fairly affordable. The ACRA's fee for registering a company name for your use is S$15 and for incorporating a company is S$300. You need to provide at least one local resident director, shareholder, and company secretary. You also need minimum initial paid-up capital of S$1 and a registered local office address.

Re-domiciliation of Foreign Companies

Singapore is also encouraging the inward re-domiciliation of companies. Under the scheme, foreign companies, having total assets in excess of S$10million, can transfer their registration to Singapore. Doing so gives them a chance to relocate their regional and worldwide headquarters to Singapore.

The brings them the benefits of Singapore's stable political environment, robust legal structure, lower tax rates, lack of capital gain tax, and highly skilled workforce. The re-domiciliation does not affect a company's corporate branding or history. Their obligations, liabilities, assets, properties, or rights as a foreign corporate remains the same.

Presently, Singapore is experiencing an increase in the number of foreign charitable & voluntary work organisations. These entities are registering Companies Limited by Guarantee to establish their Asian headquarters and increase their charitable outreach.

Singapore is known for its governance and transparent corporate compliance. The move gives them an opportunity to streamline their core administrative activities. The donations made for 'foreign charitable purposes' are not tax-deductible in Singapore. These entities benefit from tax incentives, benefits, and rebates.

Stringent Due Diligence

If you intend to opt for a Singapore company registration in 2021, you will need to submit all the necessary KYC documents to your agent and observe Customer Due Diligence (CDD). These are mandatory obligations. Your risk profile will determine the extent of KYC and CDD required.

You will need to share shareholders' and company directors' particulars with the ACRA. You will also need to identify the ultimate beneficial owner of the company and maintain updated Register of Registrable Controllers. The due diligence also includes a declaration informing ACRA that the directors and agents of the client are not politically exposed persons.

The stricter due diligence is an effort to prevent misuse of corporates for illicit purposes like money laundering and terror financing. It helps Singapore in sync with international standards and maintains its reputation as a transparent financial hub.

Corporate Compliance

Singapore companies have to be prompt in the filing of their annual returns and holding of their AGM as per the recommendations. Non-compliance could harm your brand image. For this reason, company directors appoint experienced providers of corporate services to take care of business' statutory books and registers and prepare AGM documents.

SBS Consulting is one of the premier provider of corporate services in Singapore and offers affordable packages for private limited company registration. If you any queries, call us on +65 6536 0036 or email us at info@sbsgroup.com.sg for answers.