Determine Registered Capital: Entrepreneurs must decide on the amount of registered capital when registering a company in Singapore. As Singapore primarily features private limited companies and does not impose a minimum capital requirement or require full capital to be in place before operations, this process is relatively straightforward. The main decision involves selecting a company name, subject to approval, and choosing two primary business activities during registration.Business Scope: Unlike certain restrictions in China, most industries in Singapore can operate as private limited companies, subject to approval. Entrepreneurs often choose two primary business scopes during company registration.Bank Account Opening: After company registration, attention shifts to opening a bank account. Singapore offers both local and foreign banks, with some allowing remote account opening for foreign enterprises. Choosing a bank that aligns with business needs is crucial.
Taxation Considerations: Singapore’s tax system is straightforward, featuring a single tax type—corporate income tax. Currently set at 17%, Singapore’s corporate income tax is the lowest in Asia, second only to Hong Kong’s 16.5%. Additionally, businesses that meet certain criteria, such as setting up headquarters or establishing a research or technology team in Singapore, can apply for tax incentives, potentially reducing the corporate income tax rate to 10% or even 5%. For international trade-focused companies, Singapore’s numerous free trade agreements can significantly reduce tariffs or value-added tax.
Local Director Requirement: Establishing a company in Singapore requires having a local director, such as a Singapore citizen, permanent resident, or an employee with a valid employment pass. If unavailable, various service providers offer temporary local director services to help businesses find a suitable local director upon landing in Singapore.