Singapore registered companies enjoy very attractive tax exemptions and incentives. Your company pays less than 9% for the first S$300,000 annual profits and 17% flat after that for Year Assessment 2010-2012 on income sourced in Singapore. There are no capital gains or dividend taxes on Singapore companies. Excellent tax benefits and business reputation of Singapore are the key reasons why entrepreneurs from around the world prefer to form a company in Singapore.
To support entrepreneurship and to help Singapore local enterprises grow, a newly incorporated company that satisfies the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income (excluding Singapore franked dividends) for each of its first three consecutive Year Assessments.
A further 50% exemption is given on the next $200,000 of the normal chargeable income (excluding Singapore franked dividends) for each of the first three consecutive Year Assessments.
- First $100,000 @ 100% = $100,000
- Next $200,000 @ 50% = $100,000
- Total $300,000 = $200,000
To qualify for the tax exemption for new start-up companies, your company must:
- be incorporated in Singapore (other than a company limited by guarantee);
- be a tax resident* in Singapore for that Year Assessment. A company is resident in Singapore if the control and management of its business is exercised in Singapore.
- have no more than 20 shareholders throughout the basis period for that YA where:a)all of the shareholders are individuals beneficially and directly holding the shares in their own names; OR b)at least one shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company.
AUDIT AND FINANCIAL RETURNS
For companies with annual turnover over S$5m, annual audited accounts are required to be filed with the Singapore Registrar; the accounts must be audited by a qualified Singapore auditor. However, Exempt companies are not required to have their accounts audited and annual accounts can be filed without audit. To be defined as Exempt Company, the following conditions must be met: members of the company must not exceed 20, members of the company should be individuals and not a corporation, and annual turnover should not exceed S $5m.
ESTIMATED CHARGEABLE INCOME (ECI FORM)
ECI must to be submitted 3 months after the end of the financial year. To complete it an estimate of the revenue of the company for the financial year is requested.
In order to prepare these, book keeping and preparation of unaudited accounts or audited accounts is required. The deadlines for these documents for the first financial year are based on the date of the company’s incorporation. For the next years the dates are fixed.
C-Form is the Corporate Tax Form requested by Inland Revenue of Singapore. This is submitted on a yearly basis in November.
OUR SERVICES FOR THE COMPANY FORMATION IN SINGAPORE INCLUDE:
- Name check and approval
- Filling the incorporation documents with the Registrar of Companies
- Payment of the Government Fee
- Provision of registered office and company secretary for one year
- Rubber stamp
A standard set of original corporate documents:
- Certificate of Incorporation from ACRA (certified)
- Memorandum & Articles of Association, photocopy (certified)
- Company profile from ACRA (certified)
- First Directors’ Minutes (FDM)
- Share Certificate
DOCUMENTS REQUIRED FOR THE COMPANY FORMATION
Please provide the following documents for all Directors, Shareholders, Beneficial Owners, Authorized Signatories:
- Notarized copy of valid passport.
- Original or Certified copy of utility bill / bank statement (as verification of residential address, dated within 3 months).
- Original or certified copy of Banker’s reference letter (dated within 3 months).
- In cases where shareholders and/or directors are corporate bodies, full apostilled set of corporate documents and Certificate of Good Standing (for companies registered more than 1 year).
IMPORTANT NOTE: LICENSABLE BUSINESS ACTIVITIES
If you conduct any activity without required license or authorization granted by a relevant authority in any jurisdiction, Agent Legal will not be able to assist you with the company formation or bank account opening related to such unlicensed activity.
Licensable activities include, but not limited to: provision of financial services involving trading/brokerage in foreign exchange, financial and commodity-based derivative instruments and other securities; offering investment advice to public; insurance and banking business; operation and administration of collective investment schemes and mutual funds; payment processing services; money exchange, money transmission or money brokering; asset management; safe custody services; gaming, gambling and lotteries.
Please contact us if you need our assistance in licensing of your financial, Forex brokerage or gambling company.
Shipping of corporate documents or banking kits to your destination requires an extra charge and will be automatically added to the invoice during checkout. Shipping costs for international courier services are set automatically and can vary from USD 75 to USD 95. The fees depend on the jurisdiction of your ordered company, the country where the bank is based as well as your destination country.