Incorporation in Singapore

Why Choose Singapore for the expansion of your Foreign Business?

​

For entrepreneurs and multinational companies considering to open a business abroad, Singapore is an attractive choice for the following reasons:

​

​

100% Foreign Ownership Policy

Unusual among its regional neighbors, the Singapore law allows local corporations to be 100% foreign owned. Parent companies that form Singapore-based subsidiary companies can enjoy all the benefits of Singapore incorporation.

​

​

Attractive Tax Regime

​

Singapore taxes corporations at an attractive flat rate of 17%, but local companies, especially new companies, can take advantage of exemptions and tax breaks to pay a far lower effective rate. For example: 

​

Start-ups and new companies with a maximum of 20 shareholders (where at least 1 individual owns 10% of the share capital) can take an exemption of up to $125,000 on their first $200,000 of chargeable income for the first three consecutive years in business. 

Businesses that are not eligible for the start-up exemption can claim a Partial Tax Exemption which can be up to $102,500 for the first $200,000 in revenue. 

​

​

Flexible Banking Facilities

Singapore is home to four local banks and as many as 117 foreign banks, this creates a competitive environment that leads to innovative banking products and pricing models. Foreign business owners in Singapore have many attractive banking options to choose from. 

​

​

Stable Political and Social Environment

Singapore enjoys more social and political stability than any of its regional neighbours and other world class business hubs. On a political stability scale from -2.5 to 2.5, The GlobalEconomy.com rates Singapore at an average of 1.24; Singapore is also a harmonious multicultural society, ranked first in Asia and eighth in the world on Mercer’s personal safety index. 

​

​

REGISTRATION for a Private Company

Private companies are separate business entities provided for in the Companies Act, Chapter 50. Private companies are the most flexible business entity in Singapore, with the most advantageous tax regimes.  

​

Private companies in Singapore vary in regulatory compliance burden based on the number of members. For example: 

​

• Exempt Private Companies have 20 members or less and have no corporation with beneficial interest in the company. They also enjoy reduced regulatory compliance burdens.  

• Private Companies consist of 20-50 members and have a standard compliance burden. 

• A private company must have at least one local director and a foreigner with an Employment Pass may act as local director of the company where he is employed 

Public Companies are made up of 50 members or more and require higher levels of compliance. 

​