Company Formation in Singapore

How long does it take to form a company in Singapore?

It would not be fair to set your expectations high and assume that the incorporation can finished within a day. The process starts from the moment we have all the needed documents. Get in touch with our consultants to understand what documents you need to begin the incorporation process.

The process takes 1-2 working days if done locally provided all requirements are complete. 3-5 days if done remotely (most cases). 1 week is a reasonable assumption.

Procedure to prepare the registration of a company in Singapore

The registration process of a company in Company Formation in Singapore with LegalBison is very simple. Contact us for more details and we will start out with a free consultation in which our lawyers will answer all your inquiries.

Can I form a company in Singapore remotely?

Remote registration is possible since Singapore recognizes electronic and digital signatures, and the registration is also done online. At the same time, there may be some activities that may require your physical presence post-registration.

Necessary information to begin with company formation in Singapore

• 3 options of your desired name for the company and a company contact email address;
• Names, addresses, and emails of all shareholders and board members;
• Short description of your company’s activity.

Without a VAT number in Singapore

Only companies that are GST-registered may impose GST and can naturally claim input tax.

Although voluntary registration for GST is allowed in Singapore, approval is not automatic as IRAS will still have to evaluate.

With a VAT number in Singapore

VAT or Goods and Services Tax (GST) as more popularly known in Singapore is imposed on almost all goods and services except those that are expressly excluded under the law. The GST is at a standard rate of 9%.

Any business or company with a taxable turnover that exceeds $1 million is required to register for the GST. For those who do not exceed this taxable turnover, voluntary registration is feasible after due and careful consideration by IRAS.

Required documents to provide to register a company in Singapore

• Passport copies (scans) of all individuals above and a beneficiary owner if applicable;
• A Power of Attorney (POA) from (all) partners/shareholders is needed (in case of a remote company registration);
• Certified company documents (in case at least one of the shareholders is going to be a foreign company).

Taxation of companies in Singapore

Corporate income tax is at a flat rate of 17%. Singapore also has a tax exemption for qualifying companies from 2020 onwards with:

• A 75% exemption on the first 10,000 SGD of normal chargeable income;
• A further 50% exemption on the next 190,000 SGD of normal chargeable income.

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DTAA signed by Singapore for companies

Aiming to identify taxing rights and avoid double taxation, Singapore entered into various Double Taxation Agreements with the ensuing countries:

Albania, Australia, Austria, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Brunei, Bulgaria, Bermuda, Brazil, Cambodia, Canada, China, Cyprus, Czech Republic, Chile, Ecuador, Egypt, Estonia, Ethiopia, Fiji, Finland, France, Georgia, Germany. Ghana, Guernsey, Gabon, Germany, Greece, Hungary, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Indonesia, Japan, Jersey, Kazakhstan, Korea, Kuwait, Kenya, Laos, Latvia, Libya, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Mexico, Mongolia, Morocco, Myanmar, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Papua New Guinea, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Rwanda, San Marino, Saudi Arabia, Seychelles, Slovak Republic, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, Uruguay, Uzbekistan, and Vietnam.

Note: the DTA with Armenia, although signed, is not yet ratified.

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Accounting and audit requirements for a company in Singapore

Every company is required to keep certain records such as, but not limited to, accounting records, registers, ledgers, and the like, and file its annual Income Tax Return with the IRAS. The Singapore Companies Act provided that all businesses or companies must have their respective financial statements and accounting records audited annually by an auditor unless it is among those exempted from audit. Filing of annual accounts must be made with the ACRA. For a business or company to be exempt, it must comply with at least two of the following conditions:

• The consolidated revenue must not exceed SGD 10 million;
• The consolidated total assets must not exceed SGD 10 million;
• The total number of employees in the group must not exceed 50 individuals.

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Economic substance and residency requirements for companies in Singapore

• A company in Singapore may be owned 100% by a foreigner;
• There are not many restrictions, which is why Singapore is among the top countries with a high percentage of ease of doing business;
• The residency requirement mostly applies to the director and the corporate secretary.

LegalBison offers help with all of the above requirements. We assist and are local on the ground. Speak now for free with one of our consultants to get your business started.

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