Setting up a company in Singapore is a good intention. This country provides an environment that is very friendly for new businesses. In fact, the World Bank Report ranked Singapore as the number one country in terms of the doing business for 2 consecutive years (07 and 08). Singapore is also the second most competitive country after USA.

So it’s easy to see that doing business in Singapore is a great prospect for any foreign establishments. However, you have to be aware of the various governing laws when forming a local company in Singapore.

Company Incorporation Singapore – What is required

The obligations are simple:

– Both Singaporeans and foreigners can register a new Singapore company

– 100% foreign ownership of the company is permitted in Singapore

– Only $1 for paidup capital

– There must be one shareholder and one director

– The company must have at least one local director

– The company must have a local registered address

– The company must appoint a local qualified company secretary

The benefits

One of the biggest benefits of having a local company is that the government offers tax exemption for the first $100,000 profits for fresh set ups. This benefit continues for up to three years. This alone is a great motivation for many overseas establishments.

The corporate tax for profits between $100,000 to $300,000 is only 8.5% and profits above $300,000 is just 17%. Not many countries can match the low tax rates set by Singapore, which makes it a very big factors for new company set ups.

The need for company secretary

Here’s one thing that you must take note: the company must appoint a local, qualified company secretary. Most of the time the secretary is not part of the company’s payroll and is usually outsourced to an external party that specializes in secretarial services.

So, it is important that the company must hire the right company secretary who is qualified and professional. In Singapore, there is no lack of capable secretaries. In fact, many are highly qualified so finding one should be easy.

Closing

Forming a Singapore company is a wise choice for most overseas companies. You get to enjoys the benefits of tax exemption plus you get a good pool of local talents.