To start a business in Singapore, first of all, require getting the right visa, the EntrePass. With the EntrePass you are allowed to be dynamically involved in managing the company’s functions.
The registration of your business in Singapore is not very complex and generally doesn’t take too much time. But be conscious that there will be a registration cost as well as a cost for your company name.
Various different taxes apply to company owners. It is advisable to get professional help from an accountant, especially in the beginning. This guide will give you some idea of how to begin when starting your business in Singapore.
APPLYING FOR YOUR ENTRY PASS
Earlier than starting a business in Singapore, you have to secure the exact type of visa, an EntrePass. To be eligible to receive an EntrePass, you must fulfill certain requirements:
You must be structured and registered as a Private Limited Company.
You cannot own more than 30% of the company’s shares.
Your organization should at least have 50,000 SGD paid-up capital.
The company cannot have been registered for more than six months at the time of application.
An EntrePass is essential if you plan on being keenly involved in managing your business functions.
REGISTERING YOUR BUSINESS
There are a variety of business structures in Singapore:
Limited Liability Partnership (LLP)
Limited Partnership (LP)
If you have a desire to register a business in Singapore, you must contact the Accounting & Corporate Regulatory Authority (ACRA). Two local agents who are legal residents of Singapore can act on your behalf when starting a business in Singapore. The registration process is fully computerized and therefore quite easy and should not take a long time as you take care of the following points in advance:
Find out if the name of your company is still available. The Singapore Network Information Center (SGNIC) can help you with that.
Find out the SSIC (Singapore Standard Industry Classification) code of your company.
Find the right business location.
Get all the required licenses and permits for your business.
If you are hesitant about the details of the registration process, engage a professional to help you with starting a business in Singapore.
Once all this has been taken care of you can register your business online with ACRA. Also, it is advisable that you register for the SingPass, a common password that you can use for different official online services when starting your business in Singapore.
TAXES TO KEEP IN MIND
Any type of income you receive is subject to income tax in Singapore. This is also the case when you are starting a business. However, there are other taxes business owners have to pay as well, such as Goods and Services Tax (GST), which is levied on the import of goods. The tax rates are as follows:
The income tax depends on the type of business.
The goods and services tax (GST) is 7%.
The withholding tax is 10-20% (depending on the purpose).
The property tax is 10%.
The stamp duty depends on the value of your transaction.
When starting a business in Singapore, it is important to get in touch with an accounting firm to help you with taxation and other financial details. In this way, you will ensure to do the whole thing right without any error.