Singapore has got one of the most stable economies of the world and formation of business entities in Singapore is one of the most attention grabbing topic. Following are the various sets of information that one needs to know before setting up an entity there, be it a local resident or a foreigner.
Requirements to Set up an Entity :
Anybody who wishes to set up an entity must be 18 or above and the number of members should not exceed 50. There is no nationality issue ever raised but the concerned person must have a back up of at least 1 SGD. Additionally, the name of the organization must be unique that in no case matches with the already existing entity. Moreover, the address for the location of entity given should be a local one.One of the directors must be a local resident of Singapore and proper clarification for setting up the entity needs to be given.A turnover of 5,000,000 SGD needs to be maintained.
Procedure to be followed:
Registration needs to be done of the entity followed by the approval from the government that should be sought. After that, hiring the staff should be given a preference.
Submission of the paper work is next important step.
Basic benefits of choosing Singapore:
First and foremost benefit is that every adult is free to undertake an endeavor. Only Memorandum of Articles and Association needs to be submitted that highlights the basic information of the undertaker like:
B. Paid up capital
Different type of entities can be set up ranging from sole proprietary to partnership. Additionally, two visas for staff reallocation are provided, namely
A. Employment Pass
B. Entre Pass
Advantages of Setting up an Entity in Singapore:
Most important is the stable political environment that offers risk free and peaceful environment to the investors. Educated labour force is another merit as the population of Singapore is highly qualified offering an efficient man force. Location of Singapore with respect to rest of the world is also advantageous as it is easily accessible by all the other nations especially rest of the Asian countries and Europe. Furthermore, low rate of taxes also adds to the merits in addition to certain tax discounts that can be availed by the investors. Avoidance of double taxation by the government is another benefit offered to the investors.
Disadvantages of Setting up an Entity in Singapore:
High standards of the Singaporean government and strict rules act as hurdle sometime. Hiring of local executive as a compulsion is another drawback. No vent for secrecy as the government favours transparency is another limitation.