Setting up a company in Singapore is really fast. You can have an operational company in just one to two business days. This fast system does not catch mistakes. Mistakes made when setting up a company can cause problems later on that nobody plans for. More info!
First you need to think about the structure of your company. This is a decision that will affect you for a long time. You have an options: Private Limited Company, Sole Proprietorship or Branch Office. Each one has tax rules, different liability rules and sends a different message to investors. A Sole Proprietorship might seem simple at first. It can become a big problem as your business grows and your personal assets are at risk. Most business owners choose a Private Limited Company because it keeps their business liabilities separate investors like it and it qualifies for government grants.
All company registrations in Singapore go through the Accounting and Corporate Regulatory Authority or ACRA using the BizFile+ portal. This system is easy to use. Has clear steps. Many foreign business owners make mistakes with the local director requirement. You need to have least one director who lives in Singapore either a citizen, permanent resident or EntrePass holder. There are no exceptions. You can hire a nominee director. You need to choose carefully. A bad choice can cause problems on.
The minimum amount of money you need to start a company in Singapore is one Singapore dollar. This means that almost anyone can start a company.. There are other costs, like hiring a corporate secretary getting a local address and filing annual returns and financial statements. These costs start soon as you register your company not when your business is making money.
Many business owners are surprised by all the rules they need to follow. You need to have meetings, file tax returns and get your accounts audited when your revenue reaches a certain level. Singapores tax rate is competitive. New businesses do not have to pay as much tax in the early years.. You need to file all your paperwork on time to get these benefits.
You should also think about banking when you start your company not later. It can take weeks to open a corporate bank account and different banks have requirements. If you wait until after you register your company you will delay your business for no reason.
Singapore has a system but it only works well for business owners who take it seriously.