Setting Up a Company in Singapore

Common Business Structures in Singapore

• Private Limited Company (Pte. Ltd.): Separate legal entity with limited liability, ideal for tax benefits and growth.
• Branch Office: Parent company extension, no separate legal entity, easy setup.
• Representative Office: Non-legal entity for market research, no commercial activity.
• Sole Proprietorship / Partnership: Non-legal entity with unlimited liability, suits small businesses.
• Limited Partnership (LP): Non-legal entity with general and limited partners, used for investments.
• Limited Liability Partnership (LLP): Legal entity with limited liability, ideal for professionals.
• Business Trust (BT): Non-legal entity with trust-managed assets, suits infrastructure/real estate.

Basic Requirements for Registering a Company

• Director: Minimum one director who is at least 18 years old and a Singapore resident.

• Shareholder: At least one shareholder (individual or corporate, no nationality restriction).

• Company Secretary: Must be appointed within 6 months of incorporation; must be a local resident. Note: Sole director cannot also serve as the company secretary.

• Registered Address: Must be a physical address in Singapore (virtual addresses allowed).

• Business Activity: Must specify up to two business activities based on ACRA’s SSIC code.

• Paid-up Capital: Minimum S$1; can be increased at any time.

• Company Name: Must be in English and end with “Pte. Ltd.”

Taxation

• Corporate Income Tax Rate:

  • Flat rate of 17% for both local and foreign-owned companies.

  • Various tax exemptions available for new startups and qualifying income.

• Incentives:

  • Schemes like the Global Trader Programme (GTP) offer preferential tax rates (5% or 10%) for companies involved in international trading activities from Singapore.