When a company incorporates a business in Singapore, the most preferable business structure is the private limited company. According to the Singapore rules and regulation, a private limited company in Singapore must have at least one shareholder and this number cannot exceed 50.
Singapore is the first choice of every company for expansion of their business and also for company incorporation in Singapore. Singapore's stable political system, highly developed infrastructure and anti-corruption attitude are the big reason why companies prefer to incorporate a company in Singapore. Most of the successful company migrate their headquarters to Singapore and also new startups prefer to establish their business in Singapore. ACRA (Accounting and Corporate Regulatory Authority) of Singapore give the permission of establishment of all the businesses operating in Singapore.
Before the registration of a private limited company, one must consider the following requirements:
1) You have to select a new name that is approved from ACRA.
2) Appointment of a resident director must be a Singapore's local resident, EntrePass or a holder of Dependent.
3) Full Determination about shareholder of Company which is at least 1 and not exceed the number of 50.
4) You have to pay a minimum capital to incorporate a company in Singapore is $1(Singapore Dollar).
5) The Local registered address should be physical but not PO Box address.
6) Get an appointment of one professional company secretary.
The main reason behind company’s rapid immigration to Singapore is its honest and open politics. Many of the businesspersons and entrepreneurs find this place convenient for business startups and business expansion because of attractive scheme on Singapore tax rate. There is an authority called IRAS (Inland Revenue Authority of Singapore) especially made for tax-related issues like assessing, collect taxes and manage from Singapore taxpayers. The government of welcome foreign business investors, entities and entrepreneurs by offering them competitive tax rates, generous rebates, tax exemptions schemes, and financial incentives.
Singapore government provides an attractive offer of full tax exemption for new startups. It is a startup tax exemption schemes in which new startup companies don't need to pay tax for three consecutive years on their total taxable income i.e. up to S$100000.
To avail, these schemes startups have to fulfill some basic conditions like:
1) The company must not have share holders more than 20.
2) For startup companies, the corporate shareholder is allowed.
3) One of the shareholders must own 10% of the total share issued.
4) The companies that are in the investments and property sales business are not eligible for this scheme.
Partial Tax Exemption Scheme:
The partial tax exemption is made for those companies who are not eligible for the full tax exemption scheme. Partial tax exemption is for a lifetime and there is not any term and conditions attached with this scheme except that Under partial tax exemption scheme, 75% of the initial taxable profit up to S$100000 and 50% of the next S$290000 taxable profit.
Singapore's immigration is a very well organized system. The businesspersons, who want to incorporate company in Singapore, need to apply for EntrePass. Singapore government not only welcome qualifies and certified professionals but also provide relocation of manual and skilled labors. It also offers various types of work visas to the people.
This attraction of this island is its advanced infrastructure, rich culture, world's best human resources, higher quality of life, and business-friendly environment. Singapore business incorporation, competitive tax rates, pro-business attitude is an attractive part for entrepreneurs.