Foreigners in Singapore: How to Register Your Company and Get the Tax Benefits
With a stable economy and an abundance of resources, Singapore has become a hotspot for foreign businesses and entrepreneurs. In fact, the country is home to about 25,000 foreigners as of 2018. Furthermore, this number continues to grow.
Thus, if you are planning to launch your new company registration in Singapore as a local or expat resident, it is crucial that you understand the benefits and obligations of operating a company there. This article will explain everything you need to know about the register company in Singapore for foreigner online.
Basics of Foreigners Registering a Company in Singapore
When it comes to setting up a business in Singapore, foreign entrepreneurs often have more benefits than locals. This is because Singapore law allows the registration of a limited company to only Singaporean citizens or Permanent Residents. However, this does not mean that locals have greater rights or privileges when it comes to running a company in Singapore. In fact, there are a few key differences that may be beneficial to foreigners. However, keep in mind that registering a company in Singapore is a long, complicated process. Thus, it is crucial to understand the basics of this process before you begin.
Registering Your Company in Singapore
The first step in registering your company incorporation in Singapore is choosing what type of business entity is right for you. This is because the type of business you operate will determine the necessary requirements and procedures.
Most commonly, the following two types of business entities are used by foreigners in Singapore: – Corporation: Corporations are separate legal entities from the people who own them. They have a distinct name, own assets, and are liable for debts.
Limited Liability Company (LLC): This type of business entity is a hybrid between corporations and partnerships. Corporations are often used by foreign business owners who are looking to raise capital through external investors. Meanwhile, LLCs are often used by businesses that deal with clients on a regular basis and want to protect their partners from any potential liabilities.
Partnership: Partnerships are legal relationships between two or more people who share financial risks and profits. – Sole Proprietorship: When you operate a business as a sole proprietorship, you are essentially working as a freelance contractor.
Benefits of Launching Your Company in Singapore as a Foreigner
There are a variety of benefits to launching your company in Singapore as a foreigner. Some of these include: –
Lower taxes: One of the biggest benefits of registering your company in Singapore as a foreigner is the lower taxes. In fact, the country has a low tax rate of just 20% for companies with a turnover of below SGD 10 million. –
- Availability of funding: Another benefit of launching your company in Singapore is the ease of obtaining external funding. In fact, the country’s Investment Commission (IC) grants assistance to investors looking to grow their businesses in Asia. –
- Accounting assistance: If you are unsure about the right accounting methods for your business in Singapore, you may be able to get assistance from the IC.
- Support from the government: When you register your company in Singapore, you are joining a network of entrepreneurs and potential customers. Thus, you gain access to a wealth of support and resources from the government.
- Business visas: If you are looking to move to Singapore and launch your business, you may be able to apply for a long-term visa.
Conclusion:- So we need to know that the process of registering the company in singapore is not that hard. only you need to follow the proper path of registering the company in singapore.