Open a Company in Singapore: Expert Company Formation Services

We are experts in the opening of Singapore companies with foreign shareholding structures. Companies registered in Singapore must have at least one shareholder and a maximum of 50. The shareholders may be legal entities or natural individuals. One resident must act as the manager of the company, but it may also have other local or foreign directors. Only natural persons above the age of 18 are accepted as company directors or managers in Singapore.

If you want to open a company in Singapore, our incorporation agents remain at your disposal. For more information on the procedures, please see below.

Quick Facts About Singapore Company Formation

Category	Details
Types of companies	Sole proprietorship, General partnership, Limited partnership, Private limited liability company, Public limited liability company, Free Zone Company
Minimum share capital (LTD)	S$1
Minimum shareholders (Limited Company)	1
Time frame for incorporation	1 week
Corporate tax rate	17% (onshore), 0% (offshore)
Dividend tax rate	Singapore does not impose a dividend tax.
VAT Rate	9% standard rate, 0% for certain goods.
Double taxation treaties (approx.)	100
Do you supply a Registered Address/Virtual Office?	Yes
Local Director Required?	Yes
Annual Meeting Required?	Yes
Company Redomiciliation Permitted?	Yes
Electronic Signature	Yes
Accounting/Annual Return Required?	Yes
Foreign-Ownership Allowed	Yes (100%)
Tax exemptions available?	Corporate tax exemption for startups for the first 3 years.
Applicable legislation	Singapore Company Law
Legal forms for foreign companies	– branches, – liaison offices, – subsidiary companies
Special registration requirements for foreign investors	Yes, residence permits are required for those who want to move to Singapore.
Minimum number of directors	One
Company secretary required?	Yes, all companies must appoint a company secretary.
Availability of company secretary services	Yes, we provide this solution for foreign investors.
Online registration possibility	Yes, online company formation is available.
Availability of local representative services	Yes, a mandatory requirement for foreign business owners.
Local address requirements	Yes, all companies must have local addresses.
Business incorporation steps	– trading name reservation, – documents drafting, – documents filing with ACRA, – bank account opening, – tax and GST registration
Documents required to open a company	– Constitution, – information about the shareholders and directors, – proof of legal address, – information about the company secretary, etc.
Business licensing requirements	Yes, for certain activities, special licenses are required.
Possibility to hire local employees	Yes, foreign investors have access to the local workforce.
Registration for employment	All companies must register with the Central Provident Fund, Skills Development Levy and Foreign Workers Levy.
Support in setting up a company?	Yes, we can help you open any type of business in Singapore.

Open a Company in Singapore: Expert Company Formation Services | Bestar

Business Forms in Singapore

There are various types of companies in Singapore. Our Singapore company formation agents can help you choose the best structure for your needs.

• The sole proprietorship which has very few requirements and is very easy to create.

  
  

• The partnership which can be general or limited and is not considered a separate legal entity.

  
  

• The private and public limited liability company which is the most popular type of company in Singapore. Our experts can assist you in setting up a private limited company in Singapore.

  
  

• The subsidiary, the branch office, and the representative office are suitable business forms for foreign companies.

Businessmen interested in starting a business in Singapore should also know that a private limited liability company (LLC or Ltd.) can be used for creating an offshore company in Singapore. An offshore company is a business entity established for trading purposes outside the country it is registered in. Singapore allows both local and foreign investors to open this type of company.

A natural person and local resident must be the secretary of the Singapore offshore company. There is no authorized capital required at the incorporation of an offshore company in Singapore, but a symbolic share capital of at least 1 dollar must be deposited. It is important to know that a foreign entity cannot self-register as an offshore company; the process must be carried out by a local professional agency like ours.

Requirements for Setting Up a Company in Singapore

The first step for opening a Singapore company is reserving a trade name with the Accounting and Corporate Regulatory Authority (ACRA). Our company registration specialists in Singapore recommend foreign investors submit three different names for approval.

The requisites for starting a company in Singapore will imply at least one shareholder, a director, and a company secretary. Singapore does not impose any restrictions on the shareholders of a company. The minimum number of shareholders accepted is one, while the maximum is 50 for a private limited liability company. Shareholders can be natural persons or other companies.

If a resident director or secretary is not available (if you are setting up the company from abroad), this role can be taken by Bestar. We offer such services at very affordable prices.

Another key requirement is having a legal address in Singapore. We can also help with virtual office services, which can be used during the initial stage of company registration in Singapore.

Several documents must be presented to ACRA, such as the Constitution, passport copies of the shareholders and directors, their residential addresses, and more. ACRA will then issue the certificate of registration, after which you can proceed with registration for the Goods and Services Tax (GST) with the Inland Revenue Authorities of Singapore (IRAS).

Even if the activities of the Singapore company target other markets, the necessary business licenses and permits must be obtained from local authorities. We can help you open a company in Singapore and obtain these required licenses by providing specialized assistance.

When it comes to the management structure of a Singapore company, the following must be considered:

• At least one director is required.

• At least one of the directors must be a Singapore resident (nominee directors are permitted).

• The director must be a natural person and at least 18 years old.

The company secretary is a mandatory requirement. Just like in the case of a director, the secretary must be a natural person and a Singapore resident. One of the shareholders or directors may act as a company secretary. We also offer professional company secretary services to ensure all regulations are met.

For foreigners, the appointment of a local agent to complete the registration with ACRA is mandatory. Do not hesitate to reach out to us for information on all the company formation services we can provide.

Step-by-Step Guide to Company Incorporation

Our local agent, who can be one of our specialists in company incorporation in Singapore, will assist with the following steps:

1. Preparing the incorporation documents: The Constitution.

2. Translating and notarizing the incorporation documents and owners’ identification papers.

3. Filing all documents with ACRA and obtaining the business license and company’s business profile.

4. Registering with IRAS for taxation purposes and for obtaining a GST number.

After these steps are completed, you can begin the process of obtaining a business permit if your company's activities require it.

Advantages of Opening a Company in Singapore

There are numerous reasons why opening a company in this jurisdiction is appealing, making it one of the most attractive places for business in the world.

• Tax Efficiency: Singapore's low corporate tax rate (17% for onshore companies) and lack of capital gains or dividend taxes make it ideal for minimizing tax liabilities.

• Global Commerce Hub: The company can be used for commercial activities worldwide while having a stable and well-reputed fiscal domicile.

• 100% Foreign Ownership: Full foreign ownership is allowed in all sectors, with no authorization requested at registration.

• Holding Company: A Singapore company can be used as a holding company.

• E-commerce Opportunities: It is an excellent jurisdiction for online businesses and e-commerce companies.

• Minimal Bureaucracy: The company registration in Singapore is a streamlined, efficient process.

For a new company with less than 20 shareholders, a 4.25% tax rate applies to the first $100,000 of taxable income for the first three years. The next $100,000 profits are taxed at 8.5%, with a flat 17% rate for income above that. Foreign-sourced income not delivered in Singapore is also exempt from taxes.

A Brief Comparison: Onshore vs. Offshore Companies

Foreign investors who decide to open a company in Singapore often debate between an onshore and an offshore company.

• Onshore Company: Benefits from tax incentives offered by the government and has broader prospects within various industries. It is generally seen as having higher credibility.

  
  

• Offshore Company: Can also take advantage of tax exemptions. Singapore is not considered a tax haven, so a Singapore offshore company will not face difficulties doing business in other countries.

Our Singapore company formation experts can offer detailed information about the registration of each type of company to help you make the best choice. We can assist with company registration procedures for both.

The Process of Opening a Limited Liability Company in Singapore

The limited liability company (LLC) in Singapore is a common and popular choice for both local and foreign investors. It offers limited liability for shareholders against corporate debts and is considered a separate legal entity.

The registration of this company type is done in accordance with the Companies Act, Chapter 50, and all LLCs must be registered with ACRA.

To open an LLC, you must:

1. Select a trading name and have it approved by ACRA.

2. Appoint a director and register the shareholders with ACRA.

3. Have a registered office for your company.

4. Appoint a company secretary within a few months of registration.

5. Subscribe to the minimum share capital of at least 1 SGD.

Costs of Company Formation in Singapore

Before setting up a company in Singapore, an investor must consider the following costs:

• ACRA Registration Fee: Around 210 EUR, depending on the type of company.

• Virtual Office: Starts at 120 EUR/year, a more affordable option than a traditional office.

• Minimum Share Capital: Minimum amount S$1 is required for a private limited liability company.

• Company Formation Fee: Our basic package starts at approximately 450 EUR.

• Accounting Fees: Start at 140 EUR/month.

The company formation procedure in Singapore takes a maximum of 2 days, but obtaining special business licenses may take longer depending on the activity.

Important Aspects for Foreign Entrepreneurs

Foreigners looking to register a business in Singapore should be aware of a few key things:

• Legal Representation: You must be legally represented by a local specialist. Foreign citizens cannot register a company on their own.

• Relocation: You can run the business from abroad, or if you wish to relocate to Singapore, you must apply for an Employment Pass or Entrepreneur Pass.

• Physical Presence: Most incorporation formalities can be handled remotely, including the opening a bank account in Singapore.

Post-Registration Requirements

Once the company is registered, there are several steps to be taken:

• GST Registration: Register for the Singapore Goods and Services Tax.

• Business Licenses: Apply for any required business licenses.

• Corporate Bank Account: Open a corporate bank account.

• Employment Registration: Register with the Central Provident Fund (CPF) and Skills Development Levy (SDL) if you hire local employees.

• Auditor Appointment: Appoint an auditor for the company.

Our team of incorporation agents can provide complete assistance with these post-registration requirements.

Relocating a Business to Singapore

Foreign companies wishing to redomicile to Singapore must comply with at least two of the following requirements:

• Annual turnover exceeds 10 million SGD.

• Total assets exceed 10 million SGD.

• The company has a minimum of 50 employees.

Large corporations can also relocate by de-registering in their home country and re-registering in Singapore. The legislation in the home country must allow for re-domiciliation.

FAQ on How to Open a Singapore Company

Q: Who can open a company in Singapore? A: Anyone can start a company in Singapore, regardless of nationality. Foreign investors have the same rights as citizens and may also be granted special incentives.

Q: Is the company obliged to have a local office in SG? A: Yes, a business must have a registered address in Singapore. Foreign companies can also register branch or representative offices.

Q: How can I open a bank account in Singapore? A: The company formation procedure requires opening an account with a local bank. You will need your passport and company documents. Our consultants can provide detailed information on the necessary documents.

Q: What is the minimum share capital in Singapore? A: The minimum share capital required to open a Singapore company is 1 SGD.

Q: How long does it take to register a company in Singapore? A: Company registration in Singapore typically takes about 24 hours. Where special licenses are necessary, it may take up to 14 days.

Please feel free to contact our company incorporation specialists for more details on how to open a company in Singapore and a personalized quotation.