Singapore

When setting up a business in Singapore, the most common legal form for foreign investors is the Private Company Limited by shares (Pte Ltd).


The minimum number of directors and shareholders is one director and one shareholder who can be both individual person and legal entity. Shareholder can be resident or non-resident but the director must be a resident of Singapore.

There aren't requirements for the size and the mandatory payment of the authorized capital.


Taxation:

  • Profit tax of companies which are recognized non-resident – 0 % (the company doesn’t do business in Singapore and doesn’t make the transfers of profits in Singapore banks);
  • Profit tax of companies which are recognized resident – 17 % (the company does business in Singapore or makes the transfers of profits in Singapore banks).


Accounting and audit.


There is a need to file a tax return on profit before April of every year in Singapore. The first tax return is submitted in 18 months after registration even if the company doesn’t have any activities. After company registration in Singapore, it's required to appoint an auditor who should be a chartered accountant in Singapore. The director must annually submit financial statements certified by this auditor. However, if the turnover of the company is less than $ 3 300 000, an audit reporting is optional.


The register of companies is opened in Singapore. Information about the directors and shareholders of the company is available to third parties.


Advantages:

  • High international standing of Singapore;
  • The company can be used for international trade especially with Asia.


Disadvantages:

  • It’s essential that at least one director should be resident of Singapore;
  • Necessarily to prepare and submit annually a financial statement to the tax authorities.


There is also the possibility of a bank account opening with the obligatory attendance in the following banks of Singapore: