Set Up Your Singapore Company and Flourish

Singapore is a very robust economy where businesses can grow very quickly and this is what prompts many entrepreneurs to start their own business. There are many small businesses which are started by the local entrepreneurs who have grown to become big businesses due to the excellent business environment that prevails in the country. Singapore government also provides excellent support to local businesses.

Singapore has a thriving trading business which has seen many products being exported to various countries. This has attracted many foreign companies to set their base here so that their products can find market not only in and around Singapore but also in countries across the globe. There is an excellent workforce in Singapore which can support the companies by performing various jobs efficiently.

Which Type Of Company Is Most Suitable?

When you are starting a business in Singapore it is essential to know what type of company to open. There are different types of company formations in Singapore and you should know the details about each type of company so that you make the right decision when setting up a company in Singapore. Both foreign and local individuals can open the same type of companies while foreign companies have different company constitutions.

Of all the types of companies that can be opened the private limited company is the most popular one because of the advantages it offers. The private limited company can be opened by local and foreign individuals. Foreign companies can open a similar kind of company known as the subsidiary company. The requirements for both the private limited company and the subsidiary company are the same. 

Advantages and Requirements of a Private Limited Company

There are several advantages to opening a private limited company, the most important one being that this company has a lot of scope for increasing funding and freedom to transfer the shares. This means that the shares can be sold to other shareholders for getting more funds into the company that will help to expand the operations. The other advantage is that the debts and liabilities of the company don't affect the personal assets of the shareholders.

A private limited company must have a minimum of one shareholder which can go up to a maximum of fifty shareholders. The company can be fully owned by foreign shareholders or a foreign company. The private limited company must have at least one director who is a resident of Singapore or a holder of an employment pass. One company secretary must be appointed within six months of incorporation. The company must have a registered office address. 

A Low Tax Rate That Attracts Foreign Investors

One of the other factors that attract foreigners to Singapore soil is the low rate of corporate tax in the country. At 17% Singapore has a very low tax rate compared to many companies. Even at this low tax rate, the country offers a lot of exemptions and rebates to the companies. Companies can claim full exemption up to a certain turnover in the first three years of operation. Singapore government taxes companies only for what they earn in Singapore or is remitted here.

Various tax consultants offer tax services in Singapore which will help companies to properly calculate their tax and submit their tax returns on time. Singapore companies must submit an estimated chargeable income statement which will be the base for calculation of taxes. These consultants will help the companies to prepare the statement and submit to the IRAS. Companies are greatly benefitted by the various treaties which the nation has signed with other countries concerning taxation.

Singapore charges GST on all the transactions which are done by the company. This helps the tax to be collected from the actual consumer instead of companies having the bear the burden. Companies which have crossed a turnover of S$1 million must register themselves for GST. The companies must also prepare and submit the GST statements periodically. The tax consultants can help in registration for GST. They also help in preparing the reports and submitting the same on time.