The World Bank has ranked and placed Singapore in the first position in the league of best places in the world of “doing business”. Singapore holds the top position and has retained this place for the last 10 years in a row. So, Singapore is people’s favourite in terms of starting and integrating business, and industries like freights and couriers, transportation, education, biotechnology, and garments are the options that can assure enticing returns.
Now the step of registering a company in Singapore is easy, seamless, and quick. It is as quick as the registration process including all the paperwork gets done within 1-3 days. This ease and less complex process is also another reason for entrepreneurs and business houses to invest in Singapore. The Accounting & Corporate Regulatory Authority (ACRA) permits registration of the following types of businesses; namely the Sole Proprietorship, Private Limited Company (Pt. Ltd.), and Limited Liability Partnership (LLP). The important pre-groundwork to be done before finalizing the registration is fixing and approving the name by ACRA, structuring the company by recruiting the directors, company secretaries, and shareholders, and by illustrating the nature of the business venture. The company name needs to be finalized and sanctioned before registration. No duplicate names are permitted. One needs to recruit a minimum of one resident director for the company. Singapore-registered companies relish lucrative tax exclusions and bonuses. The company pays less than 9% for the first S$300,000 one makes in yearly profits, followed by a consistent rate of 17% flat subsequently.
Singapore firms, registered under Singapore Company Registration Law do not have to pay for capital gains or dividend taxes. An infinite number of resident or non-resident directors can be recruited as well. Both resident and non-resident directors need to be 18 years old or more, not bankrupt, and not a part of any malpractice charges and legal and criminal matters in the past. In Singapore, a company can have somewhere between 1-50 stockholders, which may or may not be in the post of the director. The shareholders can comprise of both resident and non-local persons or companies. 100% overseas shareholding is permitted in Singapore.
A sole proprietorship is a business owned by one person whereas a partnership is in collaboration. A limited liability company in Singapore is a corporation where the partner’s accountabilities are generally incomplete and there is no limit on the numbers of partners. The sole-proprietor has the ultimate say in the running of the business and can be set up by a Singapore resident or the one who has permanent residency of Singapore, Employment pass, or dependent pass holder. For partnership at least two Singapore residents or the one who has permanent residency in Singapore, Employment pass or dependent pass holders can set up. Only the Limited Liability Partnership type of business is a discrete legal entity, rest are not.
A private limited company is the most progressive, supple, and ascendable type of business form in Singapore. It’s also the most favoured type of Singapore business unit for entrepreneurs and business capitalists as compared to sole proprietorship or limited liability partnership firms.