We salute our Soldiers, contributing 5% of profits to Bharat Ke Veer.
CorpAcumen Global
Schedule Meeting

Setup Business outside India

Singapore

Overview

Singapore is one of the most favoured cities to conduct business for more than a decade now. It has a well-developed free market economy that is based primarily on trade, finance and manufacturing and has formed various policies and reforms over time in order to provide ease to foreign investors. Singapore is one of the most favoured cities to conduct business for more than a decade now. It has a well-developed free market economy that is based primarily on trade, finance and manufacturing and has formed various policies and reforms over time in order to provide ease to foreign investors.

Benefits of setting up in Singapore
  • Formation of entities with distinct identity such as private company, public company and limited liability partnership;
  • Negligible minimum capital requirement;
  • Comfortable tax system with no taxable capital gain and dividend income and lowest goods and services tax rate;
  • Allows 100% foreign ownership with no currency control and ease in transfer of ownership;
  • Double tax agreements with over 70 countries providing lower withholding taxes;
  • Educated, productive, and highly motivated labour force;
  • World-class infrastructure

Types of entities in Singapore

Limited Liability Corporation (LLC)
  • Singapore provides two types of limited liability companies, one being public and the other being private.
  • A Private Limited Company (‘Pte. Ltd.’) can only have maximum 50 shareholders and has restrictions on the right to transfer its shares, whereas the number of shareholders can be more than fifty members in a public limited company and capital can be raised by offering shares and debentures to the public.
  • While considering the need to enter into Singpore market, foreign entities generally opt for incorporating a private limited company, unless there is a need to raise money from public in Singapore.
  • Both public and private limited company is a type of entity, which has a separate legal identity and involves limited liability of its shareholders and directors. It requires to have only one shareholder, one resident director, a registered office and no minimum share capital, the most attractive attribute of this entity is that foreign entities can hold entire 100% capital.
  • LLCs are also required to open bank account and have one resident director prior to opening of bank account in Singapore.
  • Corporate tax in case of LLCs depends on the type of LLC, such that it varies from 0%-17%, as new firms receive significant tax breaks during their first 3 years reducing their tax rate to 0% for first S$100k of income. Further, the dividend is received by shareholders is not taxable.
LLP
  • LLP in Singapore has a fexibility of partnership but a benefit of having a separate legal identity, exempts its partners from personal liabilities. Also, no minimum capital is required to be contributed in a LLP.
  • Minimum two partners are required in a LLP, who can be individuals or corporates and no maximum limit is applicable. Further, the LLP Agreement governs the rights and obligations of partners.
  • No minimum contribution is required but each partner has to disclose his contributions to the Registrar and notify any withdrawal thereafter.
  • LLPs are also required to open bank account and have one resident manager conducting operations in Singapore.
  • Taxation in case of LLPs depends on the type of partners, such that in case of individuals, personal tax system is applicable and in case of corporates, corporate tax system is applicable.
Branch Office
  • branch office can be setup in Singapore by a foreign entity as its extension and the mere purpose is to facilitate operation and generate revenue in the country;
  • It requires to have only one corporate shareholder, one resident agent, a registered office and no minimum share capital;
  • It is treated as a non-resident for the purposes of tax in Singapore and thus, not eligible for tax exemptions. Also, such business entity is unable to enjoy double taxation avoidance treaties and tax incentives;
  • Additionally, any liabilities incurred by the branch are attributed to the parent company and such parent company can repatriate profits without paying any taxes.
Representative Office
  • representative office can be setup by a foreign company to assess and research business opportunities in Singapore or can be setup for the purpose of promoting of existing brand and increase distribution channel.
  • It requires to have only one corporate shareholder, one resident agent, a registered office and no minimum share capital;
  • It is a short-term set up (for up to three years), and it is not permitted to engage in commercial revenue-generating activities such as concluding contracts and opening of Letter of Credit.
  • A representative office must fulfill the following criteria— Sales Turnover of the foreign entity must be more than US$250,000; Number of years of establishment of the foreign entity must be atleast or more than 3 years; Proposed number of staff should be less than 5 people.
Comparison of entities in Singapore
Limited Liability Corporation (LLC) LLP Branch Office Representative Office
Legal Status Separate Legal Entity Separate Legal Entity No separate identity No separate identity
Limited Liability Yes Yes No No
Minimum Capital US $1 US $1 US $1 None
Limit of shareholders/ partners 1 - 50 (Varied on basis of LLC type) Minimum 2 partners Parent Company Parent Company
Requirement of Director/ Manager 1 Resident Director N.A 1 Resident Agent 1 Resident Representative
Requirement of Company Secretary 1 Company Secretary 1 Company Secretary N.A N.A
Registered Office Address Mandatory Mandatory Mandatory Mandatory
Opening of Bank Account Mandatory Mandatory Mandatory Mandatory

Services offered by CorpAcumen Global

We at CorpAcumen Global assist you in identifying best suitable entity considering the goals of your businessand thereafter initiate the setting up process

  • Submit incorporation documents with the authorities in the preferred state
  • Provide registered office and local company secretary
  • Post incorporation, assist in opening of bank account with suitable banker
  • Obtain necessary licenses for the type of business
  • Provide services pertaining to accounting and taxation
  • Ensure continual compliances post incorporation, both event as well as annual based