The Advantages And Disadvantages Of Incorporating A Business In Singapore
Incorporating a company in Singapore provides several advantages especially when
it comes to taxation and the limit on business-related liabilities and debts. However, it is important to note that this business entity has also some disadvantages which must be considered.Meanwhile, this is a rundown of the advantages and disadvantages of Singapore company incorporation, according to AsiaBiz Services, one of the leading corporate solutions providers in the Singapore:
Advantages of Singapore Company Incorporation commonly known in some countries as Corporation
1.Foreign entrepreneurs can operate and setup a Singapore company.
2.Generally, it takes 3 hours to setup a company in Singapore
3.Foreign companies who setup a Singapore subsidiary company enjoy tax resident status which means that they can enjoy tax incentives and exemptions which are commonly provided to local businesses. A newly incorporated Subsidiary Company , with at least one individual shareholder that has a minimum of 10% shareholding, is entitled to the local tax exemption of zero tax for the first S$100,000 of its chargeable income.
4.The Singapore government provides several tax incentives to certain foreign companies in an effort to attract more companies to operate their company operations from Singapore.
5.The Singapore has the fastest-growing economy in the world for several consecutive years.
6.The country boasts world-class infrastructure which is one of the contributing factors to raise the business productivity.
7.Singapore is located at the heart of the Asia Pacific region which makes this ideal for international foreign companies that are planning to tap the major Asian markets including China, Taiwan, Malaysia, India, and Australia.
8.The country allows a corporation to be a 100 percent foreign-owned company (as long as it will designate at least one director who is a local resident or a holder of a Singapore Employment Pass, Entrepass, or Dependent Pass).
Disadvantages of Setting up an Incorporated Company in Singapore
1.Corporations are required to file their annual returns to the Companies Registry and Income Tax authorities.
2.Foreign businesses with a Singapore branch office are also required to file the audited accounts of their parent company.
3.Foreign companies should designate at least one director who is a Singaporean citizen or a holder of Singapore Employment Pass, Entrepass, or Dependent Pass.
4.Individuals who declared bankruptcy in the past and have criminal records cannot serve as a company director.
5.A business should designate a secretary who is a local resident within six months of its incorporation.
6.Under the corporate law, it is mandatory to conduct a paper meeting on an annual basis.
7.While Singapore has a high standard of living, its cost of living is also high.
Singapore has been voted as the ideal location for global entrepreneurs, with world-class infrastructure, well developed capital markets, highly educated work force, stable political institutions, very low crime, safe living environment and an attractive tax regime, no wonder it is the most sought location for business and migration.
Asiabiz has help thousands of entrepreneurs successfully setup their Singapore company by assisting the incorporation of the Singapore Company and successfully securing their work pass, be it Employment pass, Entrepass or Personalised Employment pass. (PEP)
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