Singapore has a strong trade and investment industry, competitive workforce, engaging pro-business and economic policies, well-developed and efficient infrastructures, affordable resources and political stability.
Its popular image as a financial and regional trading centre, local use of the English language and as the leading business hub in Asia, Singapore is a strategic and lucrative area for both local and global businesses.
Seeing Singapore’s potential as an ideal location for business growth, several multinational companies have already established their business headquarters in Singapore to benefit from its advantageous features for all types of business.
Singapore is also an ideal springboard in accessing other nearby Asian countries through air travel thereby making business operations and transactions easier and more convenient.
Reaching out to other Asian countries is conveniently easy when your company is based in Singapore.
This is because of Singapore’s ideal location and excellent international connection when it comes to trade and industry.
As proof, Singapore has presently signed 20 free trade agreements with 27 countries such as Japan, US, Korea and China and is currently negotiating more free trade agreements with other nations all over the globe.
Apparently, starting a business in Singapore is so easy that you can even finish it in just one day as long as you have the application process and submit the necessary requirements in just one day.
Because of its pro-business policies, anyone can set a business in Singapore, even foreigners.
If you are interested in setting up business operations based in Singapore, then here’s a quick step-by-step guide on the various ways of options of setting up a business in Singapore or you can only engage our business annual compilation services.
1. Establish a Subsidiary Company
A subsidiary company is a locally incorporated private limited company wherein the parent company is the largest shareholder.
The name of the subsidiary may be different to the parent company and under the Registrar of Companies’ subject of approval.
The Registrar of Companies also requires that at least one Singaporean-national director should be employed.
The subsidiary must also maintain a Singapore-registered office where its legal documents should be kept. It can also be treated as a local company.
Thus it may avail tax exemption and incentives just for any Singapore resident company.
2. Set up a Branch Office
Just like a subsidiary company, a branch office is a registered legal company however their main difference is that a branch office is recognised as an extension of a foreign company.
Hence, the foreign company’s head office is responsible for all liabilities.
It cannot avail incentives and is not exempted from paying taxes.
As required by the Singapore Companies Act, a Branch Office should hire local agents.
It is also required to have a Singapore address and only its income deliberated from its operations in Singapore can be subject to income tax.
3. Start a Representative Office
A representative office is a temporary set up for international businesses that seek to explore the local market without any business operation that yields financial income and is registered without a separate legal entity.
It may employ a small number of small local support staff, but it should be supervised by a representative from the head office.
For registration of representative offices, you may reach out to International Enterprise Singapore and Monetary Authority Singapore.
A small number of small local support staff which should be supervised by a representative from the head office is also required for a representative office to operate.
Should you need assistance or would like to find out more about annual compilation services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.