Certain requirements are to be fulfilled if you are planning to form or register a Company in Singapore.
A private limited company is considered a separate legal entity in Singapore, after its registration. Shareholders will not responsible for company’s liabilities beyond the contributed share capital.
As outlined by the Inland Revenue Authority of Singapore (IRAS), Singapore Exempt Private Limited can enjoy tax exemptions for the first $100,000 of corporate profits for the first 3 years.
The tax exemption policy for newly registered Singapore companies will not be given to investment holding companies and companies involved in property development activities that are incorporated on and from 26 Feb 2013 onwards. These types of companies will still enjoy the partial tax exemption.
In YA 2013, YA 2014 and 2015, the companies will be given a 50% Corporate Income Tax (CIT) Rebate capped at $30,000 for each Year of Assessment.
During YA 2016 and 2017, companies will be given a 50% Corporate Income tax (CIT) Rebate capped at $20,000 far each Year of Assessment.
*Entitled to 1 FREE Corporate Tax Basic Course and WordPress Course (worth $486) for companies incorporated after 21 November 2016.
*Have to attend within 4 months from date of incorporation
This promotion is only applicable for companies owned by Singaporeans / PR with or without foreigners in the company without the need of an additional Nominee director services.
Other Information About Incorporation of a Company In Singapore
A Private Limited company in Singapore is considered a legal entity separate from its directors and shareholders. Beyond the shared capital, the shareholders of the company are not responsible for its debts. Only a person, local or foreigner, with a sound mental capability at or above the age of 18 can register a company in Singapore.
Different Types of Companies
Exempt Private Company can be incorporated with 20 or less members and the company must not have corporate entity. Private company has lesser than or has 50 members while public company has more than 50 members.
Company Taxation Rules
Tax exemption scheme allows full tax exemption up to S$100,000 for first three assessment years to newly qualifying registered companies to boost Singapore’s entrepreneurship spirit and encourage foreigners to setup a Singapore company to do business in Singapore or regionally.
Singapore’s exceptional reputation and tax benefits attract foreign investors.
Documents for Incorporation a Company in Singapore:
- 3 proposed names of the company
- Brief description of 2 main activities of your business
- Place of business address in Singapore
- Particulars of local or foreigner shareholders and directors
- Copy of local director and shareholder NRIC
- Copy of foreigner directors’ and shareholders’ passport copy and proof of overseas address
- Amount of ACRA Paid-up capital (S$1-100) and breakdown percentage of shareholding
- Proof of amount of paid-up capital
Non-English documents are to be submitted with translated versions.
Company Incorporation Procedures:
The process of incorporating a company in Singapore is quick as 1-2 hours after approval of company’s name by ACRA.
Company’s name should avoid specific words to prevent being referred to external government agency which can delay the process to up to few weeks. The approved name can be reserved for 60 days. After 60 days, if you still want to reserve the name, you will need to form up an extension form.
After successful incorporation of your company, documents and a round stamp are issued by Singapore Company Incorporation Consultants for you to open a corporate bank account in Singapore. Mostly banks require signed documents and physical presence of the directors of the company to open the company’s account.
Bank account opening is subjected to Banks’ approval.
Company Documents to be Filed Annually:
Estimated Chargeable Income (ECI) is to be filed within 3 months from the end of their financial or accounting year. The company must hold an Annual General Meeting (AGM) and file Annual returns under Section 175, Section 197 and Section 201 of the Company’s Act. Submission must be of a true and fair view of the company’s accounts to its shareholders.
Who needs to apply for a licence?
To find out if your business needs to apply for a licence, please click on the licence application link https://licence1.business.gov.sg/web/frontier/home and click on ‘Choose licence(s) by Government Agency’ for a list of licencing agencies or type the keyword in ‘Find licence(s) by Keyword’.
- Council for Private Education (CPE)
- Early Childhood Development Agency (ECDA)
- Health Sciences Authority (HSA)
- Hotels Licensing Board (HLB)
- Housing & Development Board (HDB)
- Infocomm Development Authority of Singapore (IDA)
- International Enterprise Singapore (IE)
- Media Development Authority (MDA)
- Ministry of Education (MOE)
- Ministry of Law (MINLAW)
- Ministry of Manpower (MOM)
- National Environment Agency (NEA)
- Public Utilities Board (PUB)
- Singapore Civil Defence Force (SCDF)
- Singapore Police Force (SPF)
- Urban Redevelopment Authority (URA)
When do you need to register for a licence?
After the incorporating your company, some trades will need to apply for licence before starting their company’s operations. Such trades include Food Hawker Licence, Private School Licence, Import/Export Licence, etc.
Before applying for a licence
Before applying for a licence, please refer to the respective agency’s website for the licence details such as licenser agency specific guidelines, licence validity period and eligibility criteria. You will also need to get ready your company’s UEN, Business Profile and supporting documents (if any).
How to apply for a licence?
Once you have decided on the licence most applicable for your company, visit this website to complete your application for the licence(s) by using your SingPass. For foreigner without SingPass, you may request for a user account. https://licence1.business.gov.sg/web/frontier/home
For any enquiries
Please contact the LicenceOne hotline number: 67741430, visit https://licence1.business.gov.sg/web/frontier/help/download-user-guide for a step by step guide or email Licence One at email@example.com.