Company registration in Singapore

General information

Singapore- one of the jewels of Southeast Asia and one of the four so-called Asian Tigers. The modern history of this City State begins with 1819, when the first foundation stone of the British trading port was laid. During World War II the city was ruled by the Japanese, who had occupied it, after the accession of peace, it became one of the Commonwealth countries. Despite the fact that all the resources (including drinking water) are imported in Singapore, during the period that has elapsed since the sixties of the last century, the country has made tremendous economic, technological and social breakthrough and is now considered one of the most developed countries in the world. Singapore currently ranks eighth in the world in terms of GDP per capita, and low taxes and low levels of corruption attract more and more investment. Economic growth is also associated with high-tech and medical product development.

The most common business entities

For foreign companies public limited company (PLC) seems attractive because such legal form allows certain level of responsibility for shareholders and directors what is determined by their part in registered capital. As well as companies choose to register as an exempted private company (EPC).

The main features

It has simple registration system, information on beneficiaries is not freely available, but it has full tax system (although there are a number of interesting exemptions). There is a requirement to submit financial statements.

Corporate legislation

Singapore’s legal system has been based on common English law, although there have been significant changes in accordance with the norms and beliefs of the region. It should be noted that due to the large number of people from different areas of Asia, in some cases it is possible to apply a range of Chinese, Hindu or Muslim standards to the community members.

Registered capital

The minimum capital level is one dollar that can be expressed in any currency, and it is possible to increase it after registration. The nominal share price is not fixed, and bearer shares are prohibited.

The main requirements for the directors and shareholders

The company must have at least one director; at least one of them must be Singapore citizen or a person with a work visa or a work permit. Directors must participate in the annual directors’ meeting.

The number of shareholders is limited from one to fifty persons. There are no restrictions on their nationality. Directors may also be shareholders of the company. There is a requirement to hold an annual shareholders’ meeting, the Board of Directors shall submit a financial statement of the company’s operations.

Disclosure of the company’s beneficial to the government bodies

Information on beneficiaries is closed, but the information about shareholders is disclosed.

Taxation

Singapore’s non-residents must pay tax on the source of income. There is a territorial tax system, so the tax is paid on the income earned in the territory of Singapore.

Accounting system

All businesses are required to keep accounting records and submit financial statements to the Singapore tax service.

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