The World Bank repeatedly ranks Singapore as one of the easiest places to start a new business. The business environment is very conducive for both locals and foreigners when starting a new company, foreigners can hold 100% stake in a company in the country. The taxes are low and the city-state has a high quality of life. Additional advantages include the use of the British legal system and English as an official language.
DO I HAVE TO COME TO SINGAPORE TO OPEN A COMPANY?
No, as an investor you can open and manage your company from abroad with the help of a local service provider. You will only visit once when opening a bank account.
CAN I MOVE TO SINGAPORE IF I OPEN A BUSINESS THERE?
Yes. You qualify for a specialized visa known as Employment Pass awarded in 3-6 months. The only qualification is assigning yourself a salary that is above S$3,600 for University graduates. For seasoned individuals seeking to move with families using Dependant Passes, self-assigned salary should range between S$6,000-S$8,000.
IS IT MANDATORY TO HAVE EMPLOYEES IN SINGAPORE?
No, this isn’t a condition. At their comfort abroad, foreigners can start businesses in Singapore without having employees there. The company only needs a resident director and a corporate secretary.
WHAT DO I NEED TO START A BUSINESS FROM VIETNAM?
Company registration conditions in Singapore include a local address, a resident director, and a corporate secretary. A company can have several directors but one must be a local.
A corporate secretary is a certified profession based on the regulations tasked with submitting and registering all legally required documents in time. There are numerous specialized agencies that offer all these services.
HOW CAN I GET A RESIDENT DIRECTOR?
If you can’t get a person to assume the resident director’s position, you can get a Nominee Director. For instance, your company can have two directors: the nominee and you. If you will relocate to Singapore, you can just get a nominee to act for 3-6 months while applying for your Employment Pass. Once you get the visa, you can be the sole director.
The nominee officially acts as the director, but actually has no decision-making capacity or power to operate the company. He/she is just a company official on paper as a way of helping meet the legal requirements.
HOW MUCH WILL IT COST TO START AND RUN A COMPANY IN SINGAPORE?
The paid up capital requirement is as low as S$1 with an option to increase it at will in the future. The key costs when setting up a company include government fees, incorporation fees, and the initial year of legally required services – local address, resident/nominee director, and corporate secretary.
At Amercin and Ross, we offer comprehensive Singapore company registration services with our complete package.
This deal caters for all Incorporation requirements for a foreign investor: company registration, Nominee Director, Unlimited Secretary plus all resolutions, and local address conveying all communication to you without paying any deposit. Our S$290 per month offer includes a discount of S$440, this makes it one of the most favorable offers you can get as a foreigner.
When you relocate to Singapore, you get to save on the costs of a nominee director, but incur the Employment Pass cost of S$800 and Dependant Passes cost for your family of S$500.
The licensing costs range between S$50-S$500 for specific businesses such as alcohol sales and tourism and it fluctuates from one industry to another.
Your monthly expenses necessary for business operations can include rental of office space at about S$800 or a co-working space at about S$550, hiring employees (security guard at S$1,700 or software engineer at S$4,000) and so forth.
WHAT TAXES WILL I PAY?
Singapore and Vietnam have a double taxation agreement; hence you steer clear of double taxation on the same income. Below are the taxation rates in Singapore:
- Corporate tax charged on SME is highly progressive: The first S$100,000 has a 0% tax and the next S$10,000,000 is charged at 17%.
- When turnover exceeds S$1,000,000 you are required to register and start paying a GST of 7%. If you export your products abroad, you get 0% GST.
0% TAX ON DIVIDENDS
Personal income tax rates are progressive from 0% to 22%. For instance, for a salary of S$120,000 (tax rate of 6.6%) it’s S$7,950 and for a salary of S$250,000 (tax rate of 12.3%) it’s S$30,700. Detailed tax calculations are shown below.
