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What You Need to Know About Setting Up a Business in Singapore

· Singapore,Biz Incorporation,Information

Why Singapore? We give you 5 reasons.

1. Conduct Your Business with Ease
Ranked #2 in the world by World Bank’s Doing Business Report (2020), establish your corporate footprint the fuss-free way in Singapore. The city-state boasts good regulatory practices, from enforcing contracts to dealing with construction permits.

2. Take Your Business Forward

Among the World Economic Forum’s top 10 countries for ICT adoption, digital skills, and digital legal framework for 2020, Singapore is forward thinking and well-positioned for businesses looking to thrive in the digital era.

3. Seize Cost Advantage for Your Business
With only 1 Singapore Dollar (SGD) as your minimum issued capital, no capital gain taxes levied, low corporate tax rates, and tax incentives for certain industries, your business already gains several headstarts right from its incorporation. Singapore has also signed Avoidance of Double Taxation Agreements (DTAs) with major economic partners like China, India, and the US.

4. Focus on Your Business
Singapore has a highly developed and successful free-market economy that is remarkably open and corruption-free. Low unemployment rates, strong governance, and a per capita GDP that is higher than that of most developed countries all lend strength to the stability of Singapore’s economy.

5. Empower Your Business via Global Networks: Having signed over 21 free trade agreements (FTAs) with global trading powerhouses such as China, the EU, India, and the US, Singapore allows you access to strategic connectivity for your business plans and needs. The city-state is also a member of several key international organisations including the Asia-Pacific Economic Cooperation (APEC), the Organisation for Economic Cooperation and Development (OECD), and the World Trade Organisation (WTO).

2021 Economic Outlook[1][2]

Singapore’s economy is expected to grow over 5%, led by the government’s fiscal stimulus targeted at job support and rent relief. There is also greater support for the local biomedical industry, driven by global demand for pharmaceuticals. With the improving COVID-19 situation, deployment of vaccines, and reopening of the economy after the government implemented circuit breaker period from April-June 2020, this growth may be higher.

A positive correlation to the Chinese Renminbi (CNY), which is expected to post gains moving forward, may see the SGD appreciate against the USD to 1.30 by Q3 2021.

Growth Industries[3]

  • Banking and Financial Services
  • E-commerce
  • Healthcare
  • Logistics
  • Technology

What’s required? We give you a brief overview.

As an filing agent certified by Singapore’s Accounting and Corporate Regulatory Authority, Jenga BCG provides the full suite of corporate secretarial and accounting services to meet your business needs be it a stand-alone business or subsidiary. Since 2017, Jenga BCG has already successfully empowered over 400 businesses worldwide with our team of professionals armed with deep industry knowledge and connections via our regional partners.

Ready to begin? Find out how Jenga BCG can add competitive edge to your business in Singapore.

* - Qualifying new companies are given tax exemption for the first three consecutive Years of Assessment (YA) as follows (YA 2020 onwards):

(a) 75% exemption on the first $100,000 of normal chargeable income; and

(b) a further 50% exemption on the next $100,000 of normal chargeable income.

The tax exemption is open to all new companies except these two types of companies:

(a) a company whose principal activity is that of investment holding; and

(b) a company which undertakes property development for sale, for investment, or for both investment and sale.

To qualify for tax exemption for start-ups, eligible companies must satisfy these three qualifying conditions:

(a) the company must be incorporated in Singapore;

(b) the company must be a tax resident in Singapore for that YA;

(c) the company’s total share capital is beneficially held directly by no more than 20 shareholders throughout the basis period for that YA where:

  1. all of the shareholders are individuals; or
  2. at least one shareholder is an individual holding at least 10% of the issued ordinary shares of the company.

** - Information on shareholder(s) is obtainable from ACRA unless a shareholder has chosen to appoint a Nominee Shareholder. If so, only the details of the Nominee Shareholder will be made available and not that shareholder who has appointed the nominee.

*** - A company qualifies as a small company if:

(a) it is a private company in the financial year in question; and

(b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:

  1. total annual revenue ≤ 10 million SGD;
  2. total assets ≤ 10 million SGD;
  3. no. of employees ≤ 50.

For a company which is part of a group:

(a) the company must qualify as a small company; and

(b) entire group must be a “small group” to qualify to the audit exemption.

For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.

Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if:

(a) it ceases to be a private company at any time during a financial year; or

(b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

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