Are you considering starting up in Singapore? You are on the right path. This small island country has been the favorite destination of entrepreneurs across the world. It has always been rated among the easiest places to do business. However, before you get deep into the registration, it would be good to know the basics. It is important to remember this.

You Must Choose the Right Business Structure

First things first, you must determine the type of entity you would like to register. In Singapore, you have several choices:

·      Sole proprietorship: Easy, but you are the one who takes all the risks.

·      Partnership: Works as long as you are starting out with others. You share the liabilities.

·      Privacy limited company (Pte Ltd): The most preferred option by both locals and foreigners. It provides you with a distinct legal identity and limits your personal liability.

The majority of foreign investors prefer private limited company incorporation in Asia. It is more professional and tax-saving. It also makes it easier to raise capital in the future.

Meet the Basic Requirements

Singapore has simple regulations. But there are a few boxes to be ticked. In order to incorporate a private limited company, you will require:

·      One shareholder. It may be a company or an individual.

·      At least one resident director is a Singapore resident. Can be a citizen, permanent resident, or the holder of an eligible visa.

·      A company secretary. They are appointed within six months of incorporation.

·      A physical address of a local registered office (no P.O. boxes).

And, even being a foreigner, there is no reason to worry. You can still own 100% of your company. All you will be required to do is to have a local director in order to be in line with the regulations.

Register Your Company Name

You will have to ensure that a business name is available before you become attached to it. Name approvals are done by the Accounting and Corporate Regulatory Authority (ACRA). But they have a couple of guidelines:

·      It can not be the same as an existing company.

·      It must not be obscene or offensive.

·      Some industries might need additional approval for certain words. They include the finance industry, the legal sector, and the educational institutions.

Upon approval, the name is held up to 120 days, as you have time to finish the incorporation process.

Understand Taxes and Incentives.

One of the main motivations that makes entrepreneurs flock to Singapore is its tax system. The corporate tax rate is set at 17% and startups have favourable exemptions. In the case of newly incorporated firms, the first three years might come with substantial tax concessions.

To top it, the government provides:

·          Innovation and technology

·          Green business grants and incentives.

Should you wish to scale, other countries also have tax treaties with Singapore. You can take advantage of them to eliminate double taxation.

Concluding Thoughts

It is unbelievably easy to register a business in Singapore. Make time to select the appropriate structure, meet the basic requirements, and understand tax planning. After covering the basics, you will understand why Singapore is the business home of many entrepreneurs.