Starting a business in Singapore implies completing several steps. In the process of registering a company, one must consider the legal and accounting requirements imposed by Company Law and various accounting regulations.
Below, our accountants in Singapore explain the procedure of setting up a company in the city-state and the taxes you need to be aware of after incorporation. Feel free to get in touch with us for details on the services we can provide for you and your business.
| Quick Facts | |
|---|---|
| Types of companies available for registration |
– sole trader; – partnership; – limited liability company (private and public). |
|
Taxation of sole traders |
Sole traders are subject to the personal income tax ranging from 0 to 22.5% |
|
Taxes imposed to partnerships |
Members of partnerships must pay the personal income tax if they are natural persons and the corporate tax if they are companies. |
| Taxation of corporate forms | Corporate tax of 17%; exemptions from the corporate tax are also available for certain types of income. |
| Taxation of holding companies |
Holding companies are subject to different tax regimes in accordance with their use: investment based or financial based. |
| Corporate secretary requirements (if any) |
Yes, private and public companies must appoint corporate secretaries. |
| Employment taxes |
– income taxes; – social security contributions. |
| HR and payroll support (YES/NO) |
Yes, we offer support in payroll in Singapore. |
| Support in applying for tax incentives (YES/NO) |
Yes, we can assist in applying for tax benefits under various schemes enabled by the government. |
| Assistance in GST registration (YES/NO) | Yes, you can rely on us for support in GST registration and taxation in Singapore. |
| GST rates in Singapore |
– 8% standard rate in 2023; – 9% starting with 2024. |
| Access to double tax treaties |
Yes, foreign companies can access approximately 100 double tax agreements. |
| Audit services (YES/NO) |
Yes, we also have a team of auditors in Singapore. |
| Industry-oriented services available (YES/NO) |
Our services are oriented to companies operating in industries that are subject to special tax regulations. |
| Other services |
– tax filing services; – bookkeeping; – tax compliance; – support in filing for financing, etc. |
Table of Contents
Company registration steps in Singapore
When dealing with company formation in Singapore, here is what you need to know:
- you first need to reserve a trading name;
- you must also have the incorporation papers drafted and notarized;
- you must also open a bank account with a Singapore bank;
- the documents must then be filed with ACRA (the Accounting and Corporate Regulatory Authority);
- you must obtain a tax identification number;
- you can also register the company for GST, however, this is not a requirement in the first stages of the incorporation procedure.
As part of our company formation packages, our accounting firm in Singapore can assist with the registration for taxation and obtaining a GST number. You can also rely on us for accounting services after the incorporation has been completed.
Types of businesses that can be set up in Singapore
Singapore is quite offering in terms of legal forms that can be used to launch a business. Among these, you can take notice of the following:
- the sole proprietorship which is available for single entrepreneurs, and comes with certain tax advantages;
- the partnership which can be divided into general and limited;
- the limited liability company with its two forms – private and public.
Foreign companies can also establish branches and subsidiaries for developing commercial activities and liaison offices for marketing purposes. You can rely on us for bookkeeping services in Singapore for each and every type of entity presented above.
Here is also an infographic on this subject:
Company formation documents in Singapore
The Singapore company formation process implies having drafted and authorized various documents in accordance with the type of entity selected. For the simple ones, namely sole trader and partnership, an application form, respectively a partnership deed is required. For corporate forms, the Articles of Association are the main papers that need to be created.
Our local specialists are at your disposal with complete company formation services based on the industry you want to operate your business in. This is also available with our Singapore accountants who can tailor their services based on sector-specific particularities.
Also, if you want to hire personnel, one of the key services we can provide is payroll in Singapore.
Here is also a video on this subject:
Companies from a taxation point of view in Singapore
One of the reasons that investors from all over the world decide on company formation in Singapore is taxation. Here are the main aspects to consider:
- for companies, the corporate tax is 17%, however, not all companies must pay it (our accountants can clarify this aspect for you);
- the personal income tax which is levied on sole traders and members in partnerships applies progressively at rates ranging from 0% to 22.5%;
- the GST which has been altered in 2023 and is applied at a rate of 8% (in 2024, the rate will be raised to 9%).
We remind business owners that they must also comply with audit requirements before filing tax returns. For this purpose, our auditors in Singapore are at their service. They are accredited by the Institute of Internal Auditors.
If you need support in company formation and accounting in Singapore, do not hesitate to contact us for a personalized experience.