Many people, Singaporeans as well as foreigners, want to start their business in Singapore as its location is ideal for setting their headquarters for spreading their business globally. Due to increasing investment and strong trade conditions have made Singapore the easiest place in the world and most viable country in Asia to do any business.
Benefits of establishing its international headquarters in Singapore
– The support of the Singaporean network of more than 50 comprehensive agreements of Double Taxation Avoidance
– The support of many investment guarantee agreements and free trade agreements of Singapore
– Strict enforcement of strong intellectual property laws of Singapore to protect your innovations and ideas.
But before the start of a company in Singapore there are certain rules to follow in Singapore. Some of these rules are briefly described in this write-up.
Registration of the business
One can easily register his business or his foreign branch office in Singapore just by applying online at Bizfile though the Authority of Accounting and Corporate Regulatory body.
If any foreign business wants to set up its representative office in this country then he has to contact certain governmental agencies like:
– Monetary Authority of Singapore for finance, insurance and banking sectors
– Legal Services Regulatory Authority for legal sector
– Enterprise Singapore for all other types of businesses
You can visit at SMEPortal.sg to get more information in this regard.
While registering your company in Singapore you will have to fulfill certain requirements like:
You will have to get the name of your company approved before establishing it
You will have to appoint at least one local director along with appointing any number of resident and non-resident directors. All the directors, resident as well as non-resident, should not be less than 18years old. They should be free from the charges of malpractices and bankruptcy in their past.
Your company can have local and foreigner, individuals or companies or totally non-resident shareholders from 1-50, which may or may not be its directors. The shares of your company can be issued or transferred freely once it has been established.
You will have to hire a qualified local company secretary within 6 months of incorporation of you company in Singapore. But he cannot be one of its shareholders or directors.
You must have paid-up capital or share capital amounting to S$1 minimum to get your company registered in Singapore. After the incorporation of your company you can increase your paid-up capital anytime.
You will have to provide a physical local address in Singapore as the official address of your company. It can be the address of a commercial or residential building but P.O. Box is not acceptable for this purpose.
However, after getting registered in Singapore your company can enjoy a number of tax incentives and exemptions. If the annual profit of your company for the first time is S$ 300,000 then you will have to pay tax even less than 9% but thereafter you will have to pay at 17% flat rate. But you need not pay any dividend or capital gain tax in Singapore.
Finding business premise in Singapore
You can get a wide variety of business premises in Singapore. It can be in one of its suburban estates, in the center of civic district, in a flatted factory or in a modern luxurious house. They also assure to provide infrastructure and premium facilities for your business. You can also contact Economic Development Board to get the list of special industrial parks and other business parks in Singapore.
Recruitment of manpower in Singapore
Most of the businesses get attracted to Singapore due to availability of lots of local and international talents in this country. You can contact online manpower hunting agencies and recruitment portals to hire employee easily. In order to know more about Singapore labor market and training and hiring of labor you can explore the training programs offered by EDB in collaboration with other corporations or contact at SMEPortal.sg.
Government agencies to help new businesses
Singapore is known for its smooth bureaucratic system as it helps the businesses to grow with the help of seamless working of its co-operating inter-agencies. You can contact following Singaporean government agencies to help you in establishing your business in Singapore.
EDB or Economic Development Board to provide comprehensive support from investors along with ensuring first class business friendly environment in Singapore
Enterprise Singapore for supporting the development of business enterprises
ACRA or Accounting and Corporate Regulatory Authority for supervision of regulation and registration of public accounts and business units. They also support new businesses and supervising the practices of corporate governance and requirement for compliance of rules and regulations.
SMEPortal.sg or the EnterpriseOne portal offers one-stop solution for the enterprises trying to start, survive and grow their business in Singapore. It offers links to government services and information for the guidance of any industry.
If you are a foreign entrepreneur and want to start a business in Singapore then you will have to apply for an EntrePass or Entrepreneur Pass as well as E Pass or Employment Pass though the Ministry of Manpower or MoM. These passes are necessary for a foreign entrepreneur who wants to manage his business in Singapore personally.
Basic requirements to apply for EntrePass and E Pass
Your business must be legal and registered as a Private Limited company
The paid up capital of the company should be at least S$ 50,000
Massage parlors, employment agencies and food courts etc. are some of the business which need not fulfill these basic requirements to apply for an EntrePass.
Both the passes, EntrePass and E pass, are applicable differently according to the needs of the applicant, even if they are designed for foreign entrepreneurs and professionals.
If the foreign entrepreneur does not want to stay in Singapore to supervise his business then he need not apply for these passes. But it is essential for him to appoint minimum one local director at the site of his company so that he can provide the services of filing the applications online.
Thus before the start of a company there are certain rules to follow in Singapore.