Singapore Incorporation: A Foreign Entrepreneur’s Guide 

Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.

by Slayer Jonel Sunday, February 20, 2011
Singapore is open to any foreigner who wishes to incorporate a company within its territory and jurisdiction. Aside from incorporating a company, Singapore also allows relocation under a relevant work permit scheme for personal or business reasons. One primary reason why foreigners desire to relocate to Singapore is the shooting tax rates in their own countries.

It is recommended that foreigners who wish to incorporate their business in Singapore must hire the services of a professional firm. A number of these firms are available in Singapore and their services vary in quality. It is advised that the foreigner hire a firm that offers services that are cost-effective and high quality.

BUSINESS STRUCTURES

There are three types of business structure in Singapore – the Limited Liability Company (LLC), Limited Liability Partnership (LLP), and Sole Proprietorship (SP). Among the three, the LLC (often called private limited company) is the most preferred and most widely used business structure by foreign entrepreneurs, due to the following reasons:

1. The LLC is the most flexible and advanced type of business entity.
2. The LLC has a legal personality totally separate from its owners. Hence, its liabilities do not extend to its owners.
3. The LLC enjoys special tax exemption not available to other types of business structures.
4. The LLC can exist perpetually.
5. In an LLC, all of its shares may be owned by foreigners.

PERSONAL RELOCATION

In most instances, a foreigner wishes to be actively involved in the operations of its company. It is thus necessary for him to relocate to Singapore. But in order to legally work in the country, there is a need to apply for a work permit – either an Employment Pass or Entrepreneur Pass – depending on the foreigner’s qualifications.
Approval of applications for work permits are subject to review and approval by government authorities and are considered based on its own merits.
Educational qualifications and professional experience of the applicant are key factors for the approval of an employment pass application. For Employment Pass applications, a tertiary level education is required. Other factors include professional experience and share capital of the company. An Entrepreneur Pass (known as EntrePass) is designed for business owners who lack tertiary level education but possesses good entrepreneurial background. Other requirements for EntrePass include a minimum investment of S$50,000 and hiring of local employees.
If the foreigner needs only to incorporate a company and does not intend to relocate to Singapore, he may operate his company overseas. He is also free to make periodic visits to Singapore in order to personally check the operations of his business. However, for this reason, the foreigner needs to name a local resident director. There are a number of professional firms who offer services as a nominee local director.

TAX CONSIDERATIONS

A corporate tax is charged to the taxable income of a company in Singapore every year. However, Singapore does not charge taxes on capital gains or dividend distributions for Singapore companies. A company’s shareholders may receive all after-tax income of the company anywhere in the world tax free. A flat rate of 17% is the corporate tax rate in Singapore. There are also available tax exemptions that make the effective tax rate for annual profits of up to S$300,000 less than 9%. Another interesting fact about Singapore taxations is that Singapore companies can easily avoid any double taxation when conducting international trade. For any tax paid overseas, a Singapore company can claim tax credit. Indeed, Singapore is an attractive place for foreign entrepreneurs to establish and operate a business. According to the World Bank, Singapore is already top in rank in the whole world for offering the easiest procedure in setting up a business.

About the Publisher:
Rikvin has successfully assisted local and foreign entrepreneurs incorporate a Singapore company. Our success rate is phenomenal, most of our enterprise clients have entrusted us, with the routine management tasks such as `book keeping and secretarial services and we continue to impress them beyond our promise. Rikvin has also successfully helped hundreds of foreign entrepreneurs register a Singapore company.

Our phones are answered during business hours by specialists and not by an answering machine. We appreciate the value of your time and understand that a person cannot be replaced by technology. This is especially true when it comes to making important business decisions. If you are interested in learning more about Rikvin’s Services kindly email us at info@rikvin.com or give us a call at +65 64838887.

Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.

General | Categories: financial, business
0    submitted by Slayer Jonel
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