The small island nation of Singapore rose to the top of World Bank’s best places to do business report six years ago and has never surrendered the number one position since.
The report claims it takes just three days to start a business in Singapore. And isn’t that the way businesses owners like it? Fast and easy. No fuss.
In an article posted on Business Insider, Saranya Kapur writes, “Apart from its business-friendly laws and flexible immigration policy, one big reason why Singapore has dominated the list for so long is its simple method for filing taxes.” The World Bank report puts the U.S. in 4th position overall, but 64th in terms of ease of paying taxes.
3 Simple Steps to Set Up a New Business in Singapore
The process can be summarized in 3 simple steps.
1. Choose your business entity
Though options exist, many new companies register with the Accounting & Corporate Regulatory Authority (ACRA) as “private limited companies” due to its scalability. On top of that, shareholders are not liable for debts and losses beyond their share capital.
Designated as such, your company is recognized as a taxable entity.
2. Set up your company
The private limited company is governed by the Singapore Companies Act, and must comply with its laws under ACRA and the Inland Revenue Authority of Singapore (IRAS). Designations include:
- * Company name – Must be approved by the ACRA.
- * Shareholders – Minimum of one.
- * Directors – At least one director must reside in Singapore.
- * Company Secretary – Also must be a Singapore resident.
- * Paid-up capital – At least S$1
- * Registered address – A physical office address is required.
As a newly-incorporated Singapore company, you may purchase a Business Profile from ACRA. This electronic report details information regarding your business, including your registration number (UEN), registration date, shareholders etc. This profile will be required to open a corporate bank account, apply for licenses and permits and check on potential business partners.
3. Open a bank account
After incorporating, you can open a bank account in Singapore. You may choose from a variety of local as well as international banks.
Read more about 3 Steps to Set Up a New Business in Singapore at Singapore Company Incorporation.
