Corporate services in Singapore

Singapore is the best example of the expression "extreme makeover." It went from being a poor state to the freest economy in the world and the fourth most prosperous country worldwide. 

Now, Singapore is one of the world’s economic engines, and the next place you should look to establish a corporate structure. Whether it is for holding purposes or for a trading business, Singapore should be at the top of your list.

Why?

• The highest personal security index in Asia.
• The freest economy on the planet, according to the Index of Economic Freedom.
• English is the official language and it is used for business and administrative matters, which eases doing business.
• There is a completely free flow of foreign currency
• The Singapore dollar is stable and has a good position against the euro and the dollar.
• The country has a favorable tax scheme with more than 50 double taxation treaties and a 17% corporate tax rate with a territorial tax system.
• The country has what is widely considered the best and more advance central bank and the financial authority is transparent and reputable 
• The commercial and financial infrastructure in Singapore is among the most advanced in the world. From super-fast internet to transportation, Singapore has what you need
• Singapore offers diversified investment industries. Financial investments, the oil industry, real estate, shipping, IT, fintech, and much more. 
• Singapore is one of the best countries where to protect intellectual property, which means it is ideal if you want to establish a company to protect intellectual property.

Why Singapore? Four reasons to open a company in Singapore

Tax policy

Singapore has a low corporate tax rate when compared to other major economies in the world. Companies are taxed at a fixed 17% on the income they generate or remit to Singapore. Plus, capital gains and dividends (most of them) are not taxable on the island. Also, you should consult with our experts to see if you can take advantage of the excellent tax breaks offered by the Singapore government.

Favorable for start-ups

All start-ups that qualify for the full tax exemption scheme will not pay any tax on their first $100,000 of taxable income during the first three years. Plus, they will pay 50% of the current corporate tax rate on the following $200,000 of taxable income.

Pro-business government and financing facility for new companies

Singapore is a synonym for a dynamic and friendly business environment. Thus, the government has deployed many financial assistance initiatives to provide funding to new entrepreneurs. These initiatives include cash grants, government-assisted financing schemes, company incubator programs, and debt financing schemes.

Convenience

Incorporating a company in Singapore is straightforward. You can do it in as little as five days and with limited paperwork. 

How to open a business in Singapore

Opening a business in the freest economy in the world, as you would expect, is an easy process. In fact, you can manage everything without visiting Singapore personally.

Still, the best path is to rely on our team of experts that can help you with the type of structure and assist you with managing it. 

Asset management and diversification became more important this year. COVID-19 proved it. 

Singapore is one of those honorous exceptions which instead of closing itself, opened further to the world. For example, some banks have relaxed their opening procedures. Thus, temporarily we can help you open a corporate bank account remotely.

When you incorporate a company in Singapore, we can send the final documents anywhere in the world and you just return the signed document to our experts to complete the process. 

As a foreigner, you have three options to register and maintain a company in Singapore:

Types of companies in Singapore

There are different types of corporate structures in Singapore, such as:

• Sole proprietorship
• Public company limited by guarantee
• Private liability company
• Public limited company
• General society
• Representative office, branches, subsidiaries

Of these, the one that foreigners seek the most is the PLC, which is the Singaporean equivalent to an LLC. 

Why is it the best option?

• They only require a shareholder, a resident director, a secretary, a valid and registered address, and no minimum investment capital. Plus, PLCs can engage in any type of commercial activity without foreign investment restrictions.
• In the IT and fintech world, PLCs also shine because they can receive the above-mentioned tax benefits. 

What are the most common uses of a PLC?

General purpose 

These business entities can be used for anything as long as you do not need stock liquidity. Singapore PLCs are excellent for subsidiary companies and ventures.

Holding

A PLC can be used as a holding company to manage long-term assets such as debt, shares, and real estate investments with tax efficiency. Plus, it can also be used to protect intellectual property thanks to its advanced laws.

Special Purpose Vehicle (SPV)

Perhaps the most sophisticated scheme to use a Singaporean PLC can be used is the SPV. SPVs can be used primarily to hold assets on behalf of its investors while preventing the shareholders from having any liability. It is also used to raise funds in a tax-efficient way.

The documents required do not vary too much. In some instances, authorities may require additional documents, but this is what you can usually need in terms of requirements:

Shareholding:

A company must have between one and fifty shareholders. They can be residents or non-residents, natural or legal persons. 

Share Capital: 

The minimum paid-up capital to create a company is S$1. A company can increase its share capital when desired by injecting additional capital. 

Directors:

The company must have at least one Singapore-resident director and corporate directors are not allowed. 

Company Secretary: 

The company must appoint a qualified secretary within six months of incorporation. The secretary must be a resident of Singapore. 

Registered Address: 

All companies need to have a registered address to keep their statutory documents. It cannot be a PO box. 

The incorporation process is straightforward. Roughly, it will be like this:

• Pay the incorporation fee to our experts;
• Choose a name;
• Our experts will verify the availability of the name;
• Provide a copy of your passport, proof of address (e.g., utility bill) and fill in a questionnaire with KYC information;
• This will be enough to prepare the paperwork for the incorporation of the company and email them to you to sign them unless you have any particular requirements;
• After receiving the signed documents, copy of passport, and proof of address, our experts will incorporate your company. 

The whole process should take around five days, depending on how long the courier takes. This streamlined incorporation process makes Singapore one of the best places to incorporate a business in Asia. 

How much does it cost to incorporate a company in Singapore?In Singapore, companies are registered with the Accounting and Corporate Regulatory Authority (ACRA from now on) The ACRA only charges two small fees when incorporating a business:

• Company name application fee: S$15
• Company registration fee: S$315

You can pay a third fee if you want a physical copy of your certificate of incorporation, but it is optional. There can be additional fees with our experts for the company address, secretarial, and accounting services.

As you can see, incorporating a company in Singapore is simple and affordable.

Who are we, and what can we do for you?

In Mundo, we strive to help HNWI, investors, and entrepreneurs to find refuge in jurisdictions and products that help them protect their hard-earned income. After almost three decades with NTL, we have consolidated a worldwide network of experts, including a top team in Singapore.

Our experts offer the following services:

• Preparing and submitting incorporation documents to the ACRA
• Providing a registered office address
• Providing secretary and directors for your company
• Preparing documents for the transfer of shares to final beneficiaries
• Processing changes on directors, secretaries, transfer of shares, and more with ACRA.
• Processing legalization documents for later use outside, so you can establish representative offices, branches, subsidiaries in other countries or open bank accounts with foreign banks, among other procedures.
• Opening bank accounts in Singapore
• Obtaining the DUNS identifier;
• Providing a postal address and telephone number in Singapore;
• Registering and activating accounts in payment systems (PayPal, Skrill, SmoovPay, and others);
• Preparing mandatory annual financial statements and presenting these to the relevant authorities in Singapore.

If you want to know more about our corporate services in Singapore, contact us immediately! Our team of experts can assist you to make the best decisions to start a business in Singapore. Enquire now!

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