As the world is becoming smaller with the aid of the internet and new technologies, many local businesses ventures are considering expanding their firms and incorporating themselves abroad. This is being done so that businesses can make profits and at the same time expand and thrive in a fast paced business environment. Nowadays it is all the vogue for businesses to set up international offshore companies that are incorporated in countries like the British Virgin Islands, the Bahamas, or Singapore. These countries are so-called tax havens because here there are little to no corporate or personal income taxes, capital gain taxes, reporting requirements or employment policy restrictions.
Incorporations in Singapore
For the last three decades now Singapore has been at the heart of the Asian economic boom. Singapore is the ideal place for foreign nationals to set up a business as it provides the perfect blend of Eastern and Western cultures. A modern and sophisticated country, Singapore very often acts as a bridge between the East and the West. With a stable and viable economy, this country is a great place to incorporate a business as the government offers foreign investors a lot of benefits and tax breaks. If you wish to start a business as a sole proprietor in Singapore, you must first register your business under the Business Registration Act or unless your business activity is exempted from registration with ACRA (Accounting & Corporate Regulatory Authority). To incorporate a company, you need to register your business under the Companies Act.
Features of incorporations in Singapore
In order to partake in certain business activities in Singapore you need to apply for a license or permit. If your business involves public entertainment, setting up of a food store/eatery, advertising, or operating residential based social activities such as homes for the aged, or for orphaned children, you are required to apply for a license.
Companies can usually be formed within three weeks in Singapore. It normally takes one week to get approval for a proposed corporate name and another two weeks after you have submitted the necessary corporate documentation with the Registrar. The name of a public company must end in the word Limited while a private company's name must end in the words "(Private) Limited" or "(PTE) Limited."
A registered office must be maintained in Singapore, with a minimum of two registered shareholders. Each company must hold an annual meeting and at least two shares of stock must be issued so the minimum capital is S$2. The minimum authorized capital of n incorporated business in Singapore is S$100,000.
For the convenience of foreign nationals you can even register a business, incorporate a company, or apply for a license at the Online Business Licensing Service. Individuals can also incorporate a company by themselves; however in this case the proposed directors, secretary and shareholders must all be Singapore NRIC holders. Every foreign company registered under the Companies Act must have two agents acting on its behalf in the country. These agents must be native Singaporeans, permanent residents of Singapore or must have a Singapore Employment Pass. Each and every company must have a minimum of two company directors, one of whom must be Singaporean, a permanent Singapore resident or must hold a Singapore Employment Pass. Anyone above the age of 21 can be appointed as a director.
Some individuals such as people who have declared bankruptcy are barred from being nominated as directors. Also a director cannot resign unless there are two other directors still in the company, one of whom must at all times be a native Singaporean. Additionally every business must have at least one company secretary, and an auditor must be appointed within three months of incorporation.
