Frequently asked questions about Singapore company incorporation
- The company must have a minimum of one shareholder.
- It must have a minimum of one director who is a qualified local resident. Directors must be 18 years old and above and must be natural persons.
- The company’s director can also be its shareholder.
- A minimum S$1 paid up capital is required.
- The company must have a company secretary who meets all the requirements for the post.
- Reservation of name. The incorporation process requires a company to reserve a name that it will use in its operation. This process can be completed in less than 60 minutes, but might be longer if the name to be registered is similar to existing business names or it contains words that are deemed inappropriate.
- Signing and submission of required documents. Registering a company in Singapore requires a number of documents to be signed. The length of time needed to complete this process solely depends on the ability of the company to have the documents properly signed. Generally if you visit our office in person then this step can be done in approximately 1 hour.
- Your company has corporate shareholder or
- Turnover of your company exceeds 5 Million SGD in a year
- Travel agency must have minimum paid up capital of 100,000 SGD
- A telecom SBO license needs minimum paid up capital of 100,000 SGD
- Application for Employment Pass (EP) relocation visa. The chance of getting an approval is higher when the paid up capital is higher
- Protection from double taxation as outlined in the Avoidance of Double Taxation Agreements that Singapore signed with other countries;
- Tax exemption on income generated from dividends and services rendered outside of the country;
- Tax exemptions given to start-up companies, provided that the subsidiary meets all the eligibility requirements.
Additional questions about Subsidiary company registration
- Certificate of incorporation of foreign parent entity
- Memorandum and articles of association of parent entity Certificate of incumbency (Showing current shareholders and directors) of parent company
- A certified copy of board resolution confirming its decision to incorporate a subsidiary in Singapore and the person authorized to act as foreign director of this new Singapore entity.
- If the foreign parent entity has many shareholders, then it’s not practical to incorporate Singapore entity with individual shareholding by them. In this case corporate shareholding is obvious choice.
- In case of corporate shareholding the reputation of foreign parent can benefit the Singapore entity. For example if the parent entity is quite successful with few million dollars turnover, then this reputation can help you in application of business licenses, credit facilities with banks, employment passes and so on.
- Because of the corporate shareholding audit will be mandatory for the company. This will be added cost. For companies with 100% corporate shareholding the tax incentives are not available.
- The link between Singapore Company and foreign parent company in this case is obviously clear. This may need reporting of Singapore entity profits in your home country.