Singapore Company Incorporation Overview

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General Information:

 

A Singapore Private Limited Company is a business entity registered under the Companies Act, Chapter 50. Unlike a business firm such as a sole proprietorship or partnership, it has a legal personality i.e. it has rights to own properties, can sue or be sued. It usually has the words 'Pte Ltd' as part of its name.

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The Companies Act requires a minimum of one director, who must be a Singapore resident individual, .i.e. a Singapore Citizen, a Singapore Permanent Resident, a person who has been issued an Employment Pass. A minimum of one shareholder is required and shareholders may be corporations or individuals. Companies are also required to appoint a resident company secretary, who must be a natural person and Singapore resident.

Directors, Shareholders and Company Secretary information are disclosed to the authorities and are public records.

 

Accounts must be kept for all companies. The first Annual General Meeting of a company must be held within 18 months of its incorporation. After that, an AGM must be held once in every calendar year and not more than 18 months after the closing of the last financial year end.

 

The corporate tax rate  is 17%. However, the effective tax rate can be reduced significantly (to 15%/10% or even 0%) for businesses that qualify for tax incentives. Full tax exemption can be granted on up to S$100,000 of the normal chargeable income (excluding Singapore franked dividends) of a qualifying company, for any of its first three consecutive YAs (year of assessments) from its incorporation.

The qualifying conditions for the full tax exemption are as follows:

1) The company is incorporated in Singapore.
2) The Company is a Singapore tax resident for the year of assessment under review.
3) The company has not more than 20 shareholders throughout the year of assessment.
4) All shareholders are individuals throughout the year of assessment

 

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(Prices below do not include Nominee Resident Director, please contact us for fees)

 

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*includes first year Company Secretary


 

Key Corporate Features:

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Infrastructure & Economy:

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Singapore has a highly-developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP equal to that of the four largest West European countries. The economy depends heavily on exports, particularly in consumer electronics and information technology products. It was hard hit from 2001-03 by the global recession, by the slump in the technology sector, and by an outbreak of Severe Acute Respiratory Syndrome (SARS) in 2003, which curbed tourism and consumer spending. Fiscal stimulus, low interest rates, a surge in exports, and internal flexibility led to vigorous growth in 2004-06 with real GDP growth averaging 7% annually. In 2010, the GDP growth hits 14.5%. The government hopes to establish a new growth path that will be less vulnerable to the global demand cycle for information technology products - it has attracted major investments in pharmaceuticals and medical technology production - and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Language  
The official language is English with Chinese being spoken and used widely in business context.
 

Currency   

Singapore Dollar (SGD)

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Exchange Control

None
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Type of Law

Common Law Based on English Common Law

 

Principal Corporate Legislation

Singapore Companies Act, Chapter 50

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