Business in Singapore for foreigners - everything you need to know. How to open a company in one day. Business in Singapore is an opportunity for sustainable development

Looking at the impressive scenery and appreciating the stable infrastructure of Singapore, it is hard to imagine that only fifty years ago it was a quiet port town.

The government of the city-state focuses on economic reforms, strengthening the education system and infrastructure in general. That is why Singapore has become one of the world's busiest and fastest growing economic centers, and doing business in Singapore is an attractive prospect for many entrepreneurs.

Environment conducive to doing business in Singapore

Indisputably territorial restrictions and scarcity natural resources mean that Singapore's native industries have long been associated with agriculture, farming and fishing, but these industries could not enrich the city-state. Realizing this, the government has taken all sorts of initiatives to encourage doing business in Singapore in general and attracting foreign investment in particular. This direction remains relevant to this day. Accordingly, doing business in Singapore will certainly be beneficial for local and foreign entrepreneurs, investors and international collaborations. Provide this multiple government programs.

As it becomes clear from the above table, depending on the type of company and the industry in which it is engaged, doing business in Singapore can be supported by one or more government programs. Particularly in the city-state special meaning given to new and emerging industries, as well as efforts to develop new innovative methods. In this way, the government ensures that Singapore remains an advanced and progressive power, able to compete with the world's leading financial centers.

Also, the Singaporean government, in cooperation with commercial banks, has developed a startup financing program. Through the so-called Micro Loan Program (“MLP”) commercial banks offer loans up to $100,000 to local SMEs at a rate of just 5.5%. Unlike traditional loans, the eligibility criteria for MLP are not as strict as the program is aimed at young companies that are just starting to do business in Singapore.

High living standards

And although Singapore is considered one of the most expensive cities in Asia, it is also one of the top ten destinations for expats (according to the annual Mercer Quality of Life Survey). This compares favorably with other Asian cities, where crime and corruption flourishes, and the political situation is extremely unstable.

Doing business in Singapore is also beneficial because the quality of wireless communication on the island is incredibly high, since the modest natural terrain does not prevent rapid urbanization and the development of wireless networks.

The key aspects that make doing business in Singapore so attractive to foreigners are the high level of security and a first-class education system. Singapore has repeatedly proved that the quality of education is not inferior to the leading world powers and ranks third in the world in this indicator.

Many expats believe that moving to Singapore will be beneficial not only for themselves, but also for their families and children.

Attractive tax regime in Singapore

Apart from high level life for both the local population and for foreigners, doing business in Singapore also implies an incredibly attractive tax regime. who are tax residents of the city-state, the rates are relatively low (from 3.5 to 22%), and people who are not tax residents pay taxes at a rate of 15% or at the rate for residents, if it is in their case will be higher.

The table is based on materials from the site www.iras.gov.sg.

Understanding Singapore's corporate tax system is relatively easy. The city-state has a territorial tax system, the taxable income of the company is calculated based on the net income earned in the course of maintaining professional activity within one financial year. Even if you do not take into account all sorts of tax incentives, the corporate income rate in Singapore is 17% - this is one of the lowest rates in the world.

The procedure for registering a company in Singapore is fully computerized by the Singapore Registrar. As a result, the company registration process in Singapore is fast and efficient without any bureaucratic red tape. Under normal circumstances, a company can be registered in 1-2 days.
The company registration procedure in Singapore consists of two main steps: a) company name approval and b) company registration. Both steps can be completed on the same day, provided there is no delay from the Registration Office.

A. Company name approval.

The name must be approved before the registration process can begin. Name approval is obtained by submitting an application to the Registration Office. Typically, approval/rejection notices are received in less than an hour, unless the proposed name contains one of the specific words (such as bank, finance, law, media, etc.) that would require review and approval by the appropriate external government authority. . If the name is related to an external authority, the approval of the name may take several days or weeks.

To increase your chances of getting your title approved quickly, make sure the title is:

Is not identical or too similar to the name of one of the existing local companies
does not infringe on any trademark
is not obscene or vulgar
no longer reserved by someone else

The approved name will be reserved for 60 days from the date of application. You can extend your booking for an additional 60 days by submitting an extension request before the expiration date.

B. Company registration

Once the name has been approved, within a few hours, the application for company registration can be submitted along with the approval from the Registrar of Companies, provided that all documents for company registration are ready and signed by the directors and shareholders of the new company.
There are cases when the procedure for registering a company is delayed if the shareholders or directors are citizens of certain countries, although such cases are extremely rare. In this case, the authorities may request additional information.
The Registration Office will send an official notification via email confirming the registration of the company. The electronic notice includes the Company Registration Number and is treated as an official Singapore Company Registration Certificate. A paper copy of the Certificate of Registration is no longer issued by default as it is not required in Singapore. If you still prefer a paper copy, you can request it from us additionally.

Documents required to form a Singapore company

To register a company in Singapore, the Registrar of Companies requires the following information:

The name of the company
Brief description of activities
Shareholder data
Directors data
Legal address
Company secretary details
Memorandum and Charter. The Singapore Registrar provides a standard Articles of Association which is suitable for most cases.

The registration company you engage will ask you to provide the following documents in order to prepare necessary documentation to register a company:

For non-residents: copy of passport, proof of overseas address of residence, and other Know Your Customer (KYC) information, such as letter of recommendation from a bank, personal and business profile, etc.
For Singapore Residents: Copy of Singapore ID Card
If the shareholder is entity: copy of registration documents - registration certificate and charter.

Please note that for any documents not in English, you will need to provide an officially certified translation.

Directors. At least one director must be a resident (resident means a citizen of Singapore, a person permanently resident in Singapore or an Entrepass, Employment Pass or Dependant Pass holder) is mandatory. There is no limit on the number of additional local or foreign directors that a Singapore company may appoint. Directors must be at least 18 years of age and must not be bankrupt or convicted of any past malpractice. There are no requirements for directors to also be shareholders, i.e. non-shareholders may be appointed directors.

Shareholders. A Singapore LLC can have a minimum of 1 and a maximum of 50 shareholders. The director and shareholder may be the same or different persons. A shareholder can be a natural or legal person, such as another company or trust. 100% domestic or foreign shareholding is allowed. New shares may be issued or existing shares transferred in the name of another person at any time after the Singapore Company has gone through the incorporation process.

company secretary. Under section 171 of the Companies Act of Singapore, every company is required to appoint a qualified secretary within 6 months of incorporation. It should be noted that if the director and shareholder are the same person, then the same person cannot act as the company secretary. Each company may have one or more secretaries, each of whom must be individual for whom Singapore is the main or only place of residence. The secretary or secretaries are appointed by the directors, and at least one of these secretaries must be present at the company's registered office, in person or through a representative or assistant, during business days and hours when the registered office is to be open to the public.

Paid share capital . The minimum paid up share capital to register a Singapore company is S$1. The paid-in share capital (or simply share capital) can be increased at any time after the formation of the company. There is no concept of authorized capital for Singaporean companies.

Legal address. To register a Singapore company, a local Singapore address must be provided as the registered address of the company, where all communications and notices can be sent. The legal address must be a physical address (may be a residential or commercial address) and cannot be a post office, and it must be open and accessible to the public for at least 3 hours during a normal work time every working day.

Extract from the commercial register of a Singapore company

We can provide an Extract from the commercial register of your company, including all detailed information about the company, officially obtained from the Registration Office in PDF format. It usually contains the following details:

Company name and registration number
Previous company names, if any
Issue date
Main activities
Paid up share capital
Legal address
Shareholder details
Details by directors
Company secretary details

There are a few other things you may need to set up your company in Singapore, namely:

Share certificate for each shareholder
Share register: to indicate the distribution of shares by shareholders
Stamp of the company
Company stamp

Opening a corporate bank account

Typically, banks in Singapore require the following documents to open a corporate account for a company registered in Singapore:

Resolution of the Board of Directors authorizing the opening of the account and specifying the signatories of the account, or in a format pre-approved by the bank that requires only the signature of the directors
- Standard Forms account openings signed by the authorized signatories mentioned above
- Copy of Registration Certificate
- A copy of the extract from the commercial register of the company from ACRA
- Copy of the company's articles of association
- Copies of passports (or Singapore National Identity Cards) and proof of residence addresses of directors, signatories and ultimate beneficial owners.

Some banks require account signatories and directors to be physically present in Singapore to sign official documents at the time of opening a corporate account; however, most banks accept documents signed in person at one of their overseas offices or in the presence of a public notary. Depending on the case, the bank may request any additional documents.

Keep in mind that all banks in Singapore must follow strict laws and regulations, so they conduct a comprehensive series of background checks and investigations on their potential clients before opening a new account for your company. This is done not only to protect against the risk of a potential default, but is also part of compliance regulatory requirements and strict anti-money laundering policies - as you know, Singapore takes the fight against terrorist financing and other illegal or questionable transactions very seriously, so it will be difficult for a company involved in dishonest dealings to conduct such transactions.

Depending on the number of checks that will be carried out by the bank to identify and verify the creditworthiness of the directors, the secretary and the company itself, opening an account can take from 1 day to 4 weeks.

Taxation

Companies registered in Singapore enjoy very attractive tax incentives and incentives. Your company pays less than 9% for the first S$300,000 in annual profits and exactly 17% thereafter. There are no taxes on capital gains or dividends. If it is proven that profits from trade/services are of foreign origin, they will not be taxed in Singapore unless they are remitted back to Singapore. Repatriation of profits is allowed without restrictions and taxes. The excellent tax privileges and business reputation of Singapore are the main reasons why entrepreneurs from all over the world choose to register companies here. More detailed information You can find out about taxes in Singapore corporate tax.

Income tax for the first 3 years

Income tax after 3 years

Income Tax Audit Benefits

To ease the burden on small businesses, a) preferential private companies (i.e. no corporate shareholders and no more than 20 private shareholders) with an annual turnover of less than S$5 million and b) dormant companies (i.e. who had no accounting transactions during the year) have benefits for auditing their accounts and may not audit. If a financial year less than 12 months, the stated limit of S$5 million is recalculated accordingly. It is important to note that all companies (regardless of exemptions) are required to file a Form C, Tax Estimate and Account Audit or No Account Audit Report annually.

A well-developed financial infrastructure, an attractive investment climate, preferential tax policy for small businesses - this is not a complete list of reasons why foreign entrepreneurs are thinking about starting their own business in Singapore. In this country today there are offices and representative offices of 30 thousand of the largest international companies - Singapore is rightfully considered one of the main financial centers in the world.

For those who would like to start a small business in Singapore, there is another positive factor: this country specializes in providing tourism, financial, transport and trade services - in this area you can find your place even without having a particularly large initial capital.

Just look, for example, at the tourism industry in Singapore: every year about 6-7 million people come to this country - then it all depends on your imagination and a good business plan.

If you already have a business idea, it's time to move on to action. Minimum size there is practically no authorized capital in Singapore - a symbolic 1 dollar, the minimum number of shareholders is one, licenses are not required for most types of business. Foreigners can own 100% of the shares. In fact, the only legal requirement is that the director of the firm must be a resident of Singapore.

But it is also possible that a foreign entrepreneur receives work visa- in this case, you can do without the Singaporean director. Work visa applications are reviewed by the Singapore Ministry of Labor: if you have higher education and business experience, there should be no problems.

In order to open your own business, the easiest way is to contact a consulting or law firm, of which there are a lot in Singapore. There you will not only be explained in detail all the conditions for creating and maintaining own business in the country, but they will also offer a legal address, the services of a director and secretary of the company, they will help to arrange everything in just a few days. However, the procedure for opening a business in Singapore is really simple, if you have ever opened a business in another country, you can do it there. The procedure is as follows:

— approval of a unique name in a special government agency— ACRA (Accounting and corporate regulatory authority);

— preparation and signing constituent documents;

- Company registration;

- opening a bank account;

In Singapore, starting your own business takes several days, and sometimes the whole procedure can be completed within one day.

Very significant in Singapore is government assistance for start-up entrepreneurs. So, firstly, Singapore has concluded agreements on avoidance of double taxation with many countries, including Russia. And secondly, from 100 thousand dollars of taxable income for the first three years, the company is exempt from paying tax. From the next 200 thousand for every three years - a 50% tax exemption is provided. VAT is also favorable - only 3 percent.

Finally, another advantage of Singapore is that, although 75% of the population of this country are from China, the main language business communication there is still English. No matter how minimal communication with officials in Singapore, English language helps foreign entrepreneurs feel more confident, especially in Asia.

Singapore is often referred to as the economic miracle of the Southeast, and in many ways it is. For the most short term this country was able to turn into an economic giant, having managed to attract many transcontinental corporations. Many consider this small state an ideal place to start their own business.. Today we will analyze in detail how to open a business in Singapore for Russians, what needs to be done for this and what documents to issue.

We have prepared an informative article for you. But before you start reading it, we recommend watching a video - about the most interesting facts about this wonderful country from an ordinary citizen.

Features of business in Singapore - what you should prepare for

Singapore is in many ways a very unusual country, in fact it is not a state in our usual view - it is one Big city. From an economic point of view, everything is also very difficult here, let's look at all this in detail:

• The business is very structured. This is expressed in literally everything. Each profession here has its own specification and structured. Here Literally everything is laid out on the shelves And you will face this as soon as you try to open your business in Singapore. For foreigners, this may seem very strange, but in order to open your own company, you need to hire a secretary, while he must be a resident and must be accredited.
• Asian mentality. To the uninitiated, this may seem strange, but for many Singaporeans, the main career goal is not enrichment, but promotion, preferably the state. So if you can't offer a good career ladder, then you are unlikely to be able to find decent workers among the local population, but this is compensated large quantity labor migrants.
• Work migration. And even labor migration looks special here, it is simply impossible to come here and try your luck. You need education, it does not matter higher or secondary special. In addition, you must have work experience, otherwise you simply won’t get a work visa.
• Corruption. If you decide to open the world ranking of countries for corruption before coming to Singapore, you will see this country in sixth place. But do not deceive yourself, business in Singapore for Russians will not be built in the same way as in their homeland. If you look at the ranking of the cleanliness of bureaucratic hands, then this country is one of the three world leaders. This difference is due to the fact that the inflow of money from outside was not strongly controlled. Local exchanges were the center of money laundering throughout the Asian market.

In general, different from other Asian countries it is very difficult to find here, the only thing - officials take bribes much less. Business in Singapore for Russians can be called one of the best in the world.

Key questions before starting a business

Business in Singapore for foreigners - how to open?

This island state is an economic Mecca in Asia, it is quite easy to open your own business here, the state tries to minimize its influence in business area which is very beneficial for business in Singapore. For Russian people, some requirements may seem strange, let's analyze them in as much detail as possible:

• When opening a company, one of the founders in without fail must be either a citizen of Singapore or have a residence permit or work visa. This is done for the participation of Singapore as such in all economic activities.
• Authorized capital. For some, this will seem ridiculous, but minimal authorized capital company is equal to one dollar. According to experts, this was done in order to maximize the inflow of foreign finance into the local economy.
• Singapore is actively fighting corruption and this is manifested in everything. The position of director cannot be held by a person who has a criminal record for corruption.
• The company cannot consist of only local or only foreign assets. A symbiosis of local economic power and foreign injections is necessarily provided. However, the shares are not specified in any way.
• The company must have its own address in Singapore.
• As mentioned above, it is mandatory to hire an accredited secretary.

Business in Singapore for Russians - what to do?

Another important question is what to do, which is relevant as a business in Singapore. Ideas can be found different, but everything lies on the surface - more than 80% of the population is employed in the service sector. On the this moment this is the most sought after area. Tourism, restaurant business, music schools - all this will bring you money, but do not forget that this will also require you big investments, from 100 000 dollars.

On the special place everything is worth transport companies . The thing is that a private car in Singapore is not a means of transportation, but a luxury. Coating transport services can bring big profits.

But here than exactly it’s not worth doing - it’s serving diasporas. Many immigrants come to foreign countries and work with an interesting target audience - their fellow countrymen. They build shops with "native" products, open private schools and kindergartens focused on them. But this is doomed to failure. In Singapore, there is no such thing as a diaspora, and this is enshrined at the legislative level. This was done so that relatives would stand and traditions would not interfere with the development of society and the country's economy.

But the ease of starting a business makes up for it. If you have business acumen and really want to make money, then this country will be perfect for you. Here there are a huge number of programs to support small and medium-sized businesses. And foreign companies can take exactly the same part in them as the locals.

Business in Singapore for Russians - step by step registration

Despite the fact that the bureaucracy is kept to a minimum in Singapore, but let's take it step by step, What you need to do to register your company:

1. First of all, you need to decide what you want to do. The fact is that in Singapore, some industries require additional receipt licenses and permits. In addition, they have a fixed amount of authorized capital. For example, to open travel company The authorized capital of your company must be at least $100,000.
2. After that, you need to choose a name for your future company. Legislation simply does not allow the existence of firms with two identical names. You may have to spend several hours at the computer, choosing a good name for your business.
3. Calculate the required investment. Despite the fact that the minimum authorized capital is equal to one dollar, this amount will obviously not be enough. As mentioned above, this is done in order not to scare off potential investors.
4. So if you have citizenship, a residence permit or a worker, or a person who has one of these documents, then you can skip this paragraph. If none of the above, then you need to find a firm that will help you in registering your Business in Singapore. For Russians, this may be especially true, since they usually do not have such connections.
5. If you have used the services of a local company registration company, then as a rule they completely take over this item. You need to approve the entire management and management team: directors and shareholders. Remember that there should not be more than 50 of the latter. And be sure not to forget the secretary.
6. Prepare documents: current account, letter from the bank, charter of the organization.

Myself the process of registering a company takes exactly one day All procedures are done online. If you have used the services of local organizations, then your participation will not be required at all, with very rare exceptions.

These exceptions apply to those very industries with the necessary licensing. At a minimum, the bank will require you to be present in person when opening an account.

A few words about taxes

The taxation system in this state is quite interesting, but at the same time very soft. The government makes no distinction between residents and non-residents and the tax rate is 17% on income. But it does work a large number of benefits. The most important of these is that a new organization is exempt from tax on the first $100,000 for the first three years. It looks like this:

• When you reach a profit of $100,000, you pay nothing.
• Upon reaching a profit of $ 200,000, you need to pay 8.5% tax.
• Upon reaching a profit of $ 300,000, the tax rate is 5.7%.
• If the profit exceeds 300,000, then the full rate of 17% is paid.

This is done in order to allow start-up companies to develop and not burden them with excessive deductions.

However, as a consequence, if your organization does not reach a large profit, gentle tax rates of up to 4.3% can also be applied to you.

Singapore - business visa

The last issue that remains to be considered is obtaining a visa. If we talk about business immigration, then there are two options:

• Invest $50,000 in the company at once.
• After opening a company, your local partners will issue you a business visa.

Even here there are no problems. Singapore business visa is issued at the Asian Visa Application Centre.

Conclusion

Today we looked at what a business in Singapore is for Russians. Many consider this place an economic paradise, in many respects this is true. But if you are not ready for fair competition, then this country will not the best place to start your own business.

Singapore is not only one of the most unusual and beautiful countries South-East Asia, but also one of the most stable economies in the world and practically perfect place for doing business. Good location, stable legal system, developed financial infrastructure create a favorable environment for attracting foreign capital. Attracting business investment is also facilitated by the tax regime, which has a number of benefits that are attractive to foreign businessmen.

Guarantees of safety of investments, duty-free withdrawal of profits, absence of double taxation and some other tax benefits contribute to attracting foreign business to the country.

Singapore has enormous opportunities and economic potential to open and successfully run almost any type of business. The most profitable and demanded business areas at the moment are:

• tourism and entertainment industry;
• hotel business, hospitality industry and other areas of the service sector;
• information technologies and telecommunications;
• biotechnology;
• education;
• investment business.

Tourism

Singapore receives most of its income from the tourism industry. Tourists are attracted natural beauty, ecological purity and warm climate of the island, as well as carefully preserved, historical sights. Besides, Singapore is known for its annual festivals, carnivals, as well as grandiose sales that attract many people.

A developing direction of the tourism business is business tourism, most often aimed at getting acquainted with the conditions of doing business and searching for objects for investment. Travel business countries continues to develop actively and therefore, despite the competition, it makes sense to open your own travel agency to organize the recreation of numerous tourists. New opening for tourists interesting place or any other extraordinary idea can bring in good income.

Services sector

A promising area for opening and doing business in Singapore is the service sector. Constant inflow tourists to the country makes the hotel and restaurant business very popular. Moreover, not only large hotel complexes are in demand, but also small and cozy mini-hotels and even churches.

Doing hotel business in Singapore, it is subject to a number of rather strict standards for arranging hotels and serving tourists, but it is thanks to their observance that the country's hotels are considered one of the cleanest in the world. Catering business, entertainment industry as well as beauty business are one of the promising business areas in Singapore.

In addition to services related to servicing tourists, the business of cargo transportation is popular among businessmen, because located at the intersection of important sea and air routes, Singapore is one of the most important transport hubs Asia. Both international maritime, container transportation and the movement of goods by cargo aircraft, as well as transportation within the country, are popular.

Information technology and communications

Another successful and popular type of business is the IT sector. Of course, large international corporations engaged in information technology, but small companies involved in the development of various software products, websites or providing services large companies. The advantage of running an IT business in Singapore is well-defined legislation regarding activities on the Internet.

Telecommunication systems are mostly owned by the state or large corporations, but, in addition to investing in this area, one of the areas of your business can be network maintenance.

Education

Huge prospects for business development are provided by a niche in the field of education. With an increased demand for education, courses and trainings on studying various courses, for example, on running a tourism or modeling business, as well as courses designed for the education of children, are very popular. Promising in this area will be opening of children's language courses, children's music schools.

Investments

And, probably, one of the most popular ways of doing business in Singapore is investing. The choice of objects for investment is great, here are construction and real estate, industrial production and IT sphere, beauty and health.