COMPANY INCORPORATION

A company is a separate legal entity to its owners and thus should be the best form of business entity to manage any business dealings and also protects the assets important to their owners. Companies are also a more organized manner of business and thus will require some professional attention on the administration and accounting.

To set up a company and start doing business in Singapore, a company/business must go through the Singapore company incorporation process first.

BNP helps streamline the paperwork and company incorporation hassle for you. With the provision of our high quality and efficient service, you can start and begin running your business with a peace of mind and knowing that you have high quality professionals assisting you with your businesses. We tailor services that suit your budget as well as time frame.

Our services cover everything to incorporate your business in Singapore including the following:

Search and reservation of the company name
Adoption of the standard company constitution
Preparation of the forms to be signed by the directors (Form 45)
Filing of the incorporation documents with ACRA, registration of the company and obtaining a UEN number for the company
Obtaining an electronic certificate of incorporation and Business Profile from ACRA
Preparation of the share certificates
Preparation of statutory registers for the company
Preparation of the First Board Meeting of the company
Fixing of the Financial Year End of the company

Benefits of Opening a Company in Singapore:

♦ Strategic Location: Singapore is strategically located in the heart of Southeast Asia, providing easy access to markets in the Asia-Pacific region.

♦ Political and Economic Stability: Singapore has a stable political environment and a strong, transparent legal system, making it an attractive destination for business.

♦ Favorable Tax Regime: Singapore offers one of the lowest corporate tax rates globally, with various tax incentives and exemptions available for businesses.

♦ Robust Infrastructure: Singapore boasts world-class infrastructure, including a modern transportation network, state-of-the-art telecommunications, and a reliable business environment.

♦ Ease of Doing Business: Singapore is known for its efficient and transparent business processes, making it easy to set up and operate a company.

♦ Strong Intellectual Property Protection: Singapore has a well-developed legal framework to protect intellectual property rights, ensuring a safe environment for innovation and creativity.

♦ Access to Skilled Workforce: Singapore has a highly skilled and multicultural workforce, with a strong emphasis on education and continuous training.

♦ Extensive Double Taxation Avoidance Agreements (DTAs): Singapore has a wide network of DTAs, reducing tax barriers and facilitating cross-border trade and investment.

♦ Access to Government Support: The Singapore government offers various grants, schemes, and support programs to assist businesses in their growth and development.

♦ Global Reputation: Singapore has a strong global reputation as a business and financial hub, which can enhance the credibility and reputation of your company.

Eligibility Criteria for Opening a Company in Singapore:

Age: The minimum age requirement to register a company in Singapore is 18 years old.
Directors: A Singapore company must have at least one director who is a Singapore citizen, permanent resident, or holder of an Employment Pass/Entrepreneur Pass.
Shareholders: A company can have a minimum of one shareholder, and 100% foreign ownership is allowed.
Registered Address: A physical address in Singapore must be provided as the registered address for the company.
Company Secretary: Every company must appoint a qualified company secretary within six months of its incorporation.
Paid-up Capital: There is no minimum paid-up capital requirement for company registration in Singapore.
Name Approval: The proposed company name must be unique and not infringe on any trademarks or existing business entities.

Tax Exemption Scheme for New Start-up Companies

The tax exemption scheme for new start-up companies was introduced under Section 43 of the Income Tax Act 1947 in the Year of Assessment (YA) 2005 to support entrepreneurship and to grow our local enterprises.

It was announced in Budget 2018 that the tax exemption under the scheme would be revised with effect from YA 2020, as other support for companies to build their capabilities have been strengthened.

The tax exemptions for qualifying companies for their first 3 consecutive YAs are as follows:

75% exemption on the first $100,000 of normal chargeable income*; and
A further 50% exemption on the next $100,000 of normal chargeable income*.

Audit Exemption Scheme For New Start-up Companies

Currently, a company is exempted from having its accounts audited if it is an exempt private company with annual revenue of $5 million or less. This approach is being replaced by a new small company concept which will determine exemption from statutory audit. Notably, a company no longer needs to be an exempt private company to be exempted from audit.

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:

total annual revenue ≤ $10m;
total assets ≤ $10m;
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.