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The following article was published in our article directory on November 4, 2009.
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Understanding Registering a company in Singapor

Article Category: Advice

It is a well-known fact that Singapore offers one of the best and safest environment for any new business setups. There is not doubt that the World Bank Report graded Singapore as the number one country in terms of the doing business for 2 consecutive years (07 and 08). Singapore is also the second most competitive country in the world.

Starting a new business in Singapore is a great prospect for any overseas companies. While it is great, take note that there are rules and regulations that you might want to know when incorporating a company in Singapore.

Company Incorporation Singapore - What is required

Here are a few prerequisites:

- Anyone can register a new company in Singapore, applies to both locals and foreigners

- 100% foreign ownership of the company is permitted in Singapore

- Only $1 for paidup capital

- Minimum of 1 director and 1 shareholder is required

- The company must have at least one local director

- The company address must be a Singapore registered address

- Company secretary is a requirement

The benefits

One of the biggest benefits of having a local company is that the government extends tax exemption for the first $100,000 profits for newly companies. This benefit will be enjoyed for up to three years. This alone is a great motivation for most foreign establishments.

The corporate tax is also very enticing: 8.5% tax for up to $300,000 profits and 17% for profits above that. The coporate tax rates are very competitive, which prompts many overseas companies to start their local presence in Singapore.

Company secretarial services

One important highlight here is that a local secretary must be hired by the company and this secretary must be qualified. Most of the time the secretary is not part of the company's payroll and is usually outsourced to an external party that specializes in secretarial services.

So, the challenge here is to find and appoint a company secretary who is qualified and professional. Fortunately, there are a number of professional and capable company secretaries in Singapore so it shouldn't be too hard to look for one.

Closing

Forming a Singapore company is a good idea for most overseas establishments. The new company will not only enjoys the benefits of tax exemption plus Singapore is also a great place to find local talents.

Keywords: Singapore Company Registration

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