Establishing a Company in Singapore

In the past decade, many reputable business organizations, financial magazines and internet portals have included Singapore on their lists for one of the most successful countries in the world. There is no doubt that Singapore has great business potential and their authorities are constantly working on improving the business conditions for both domestic and foreign investors and business owners. Today Singapore is an international player in the field of global economy.

There are many reasons why Singapore is developing so quickly and why their economy has resisted the changes brought by the global financial crisis. For example, Singapore has a great location – it has access to the sea and it is located in a region that is showing amazing progress in the last 20 years. Singapore also has a well-developed infrastructure and both local and foreign companies consider Singapore to be one of the easiest spots to access and transport goods. Singapore is also one of the largest seaports in the world. This city-state has a highly developed trade-oriented market economy. Their model is used by many other Asian countries that are looking for a way to boost their own economies.

If we take a look at all these things we should not be surprised when we see how many people in Singapore, but also out of Singapore want to open their own companies there. Establishing a company in Singapore is really easy. In order to do that you should first choose the type of company you want to establish. There are basically five different options – Sole Proprietorship, Partnership, Limited Partnership, Limited Liability Partnership and a new company.

The first option, sole proprietorship is very popular. This is considered to be the basic type of business structure where there is only one owner. This owner has control and decides about everything that is going on in the company – management, planning, expenses, profits, assets etc. It is good to point out that this is not a legal entity and cannot be part of any lawsuits. The income that comes as a result of the business activities is considered to be personal income and owners have to pay personal income tax.

The second option is partnership. This form of business structure can be owned by more than one person or even other companies. The minimum number of owners is 2 and the maximum is 20. This is another structure that is not a legal entity. The profit subjected to taxation is shared by the partners.

Limited partnership is a special form of partnership in which there are at least two partners where one of them is considered to be a general partner while the other is a limited partner. The general partner had unlimited personal liability. Limited liability partnership is a term used for companies where partners have certain personal liability which is defined with the statute of the company.

A completely new company can also be established and the owners in this case are called shareholders. The head of the company must be a Singaporean citizen or a person that has permanent residence in Singapore.

The Advantages of Establishing a Company in Singapore

 

In case you are following the economic and financial trends in the world you have probably read a lot of good things about Singapore in the past few years. That’s why many people from around the world are planning to promote and sell their products in services in Singapore and they are also making plans to establish a company in Singapore and use these companies as a base for their business venture. In case you are wondering why establishing a company and Singapore is a good thing we are presenting you a shortlist of few advantages related to Singaporean companies.

 

Zero corruption

The policy of zero corruption has been practiced in Singapore for decades. You can find many lists on the Internet prepared by well-known organizations and portals, which almost always place Singapore on the bottom of the lists of most corrupted countries in the world. The lack of corruption is certainly a great boost for every business venture not only when forming a company, but also while running the business. Clients are feeling safe when making deals with a company located in a country without corruption. This situation is also beneficial for those who are planning to form a company in Singapore too. Business owners and investors can be sure that they are starting with equal chances as the other companies and that they won’t encounter any obstacles once they start working. This is a great chance for anyone looking for a good start.

Taxes

One other advantage of establishing a company in Singapore is the way their taxation system works. Singapore has one of the lowest rates for corporate taxation and there are many chances to get tax exemptions and incentives too. Singapore is very active when it comes to international economic relations and they have signed many trade agreements and tax agreements avoiding double taxation. The list of these countries is growing every year – there are currently agreements with 60 foreign countries. This is a very common problem for international businessmen who set up companies in foreign countries. This double taxation can occur on many levels and the Singaporean law is trying to avoid all of them.

Privacy protected by the law

This is one of the biggest advantages for foreign investors that want to remain anonymous. Singaporean banks keep the information about their clients as something confidential and only special government bodies can have access to this information in case of suspected crime. This is one of the main reasons why so many people are interested in investing in this growing economy.

Special programs supported by the government

The government of Singapore is constantly looking for ways to attract foreign businessmen. They have numerous programs targeting foreigners and the most important ones are the incubator development program and global investor program. The first one provides financial support for those interested in establishing a company in Singapore while the other is focused on providing permanent residency in Singapore for those who are interested in living in Singapore.

 

 

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