INCORPORATION OF A PRIVATE LIMITED SINGAPORE COMPANY

Singapore’s sophisticated infrastructure, political stability, skilled workforce, respect for the rule of law and strong intellectual property rights protection are some of the qualities that have made it a top jurisdiction for company incorporation.

The Republic’s attractive tax system and extensive network of Free Trade Agreements (“FTA”) as well as Avoidance of Double Tax Agreements (“DTAs”) also benefit businesses that operate in various jurisdictions. Singapore tax regime recognizes the importance of easing cash flow for startup companies in their initial years of operation, therefore the system extends support in the form of sizeable exemptions to resident companies.

The formation of a private limited company requires certain compliances with the legal requirements in accordance with the Singapore Companies Act. 

Benefits :

• Safeguards personal assets & provides protection from personal liabilities
• Substantial tax savings as new company may be entitled to first 3 years full tax exemption for first S$100,000.00 taxable profit or partial tax exemption up to first S$300,000.00 taxable profit. Effective tax rate is less than 9%
• Exemption of audit requirement for private exempt company and company with turnover of less than S$5 million
• Easier access to capital funding through the sale of shares to investors and borrowing from banks

In order to form a private limited company, the following requirements must be adhered to:-

1. The minimum number of members of ONE and a maximum of FIFTY

2. The minimum issued share capital of ONE share (usually S$1.00 each)

3. The company must have at least ONE local Director who is * ordinarily resident in Singapore

4. There must be at least ONE Company Secretary qualified under Section 171(1B) of the Companies Act

5. The company will be subject to Income Tax at the prevailing rate

“Ordinarily resident” means the usual place of residence. As a guide, indication of permanent residency in Singapore are as follows:-

• Singapore citizens;
• Non-Singapore citizens who possess the following:-
• o Singapore Permanent Resident status;
• o Employment Pass or Approval-In-Principle Employment Pass; 
• o or Dependent’s Pass

Our professional fee for the formation of a new company is S$1,500, excluding disbursements of S$670