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The Basics of Business in Singapore

Wellstead Singapore has a wealth of experience in every aspect of the formation and successful running of a business in Singapore.

Business_SingaporeWellstead incorporation services are designed to facilitate the incorporation process for clients and to maximise the chances of highly profitable trading over the years to come. For those who are considering relocating or starting a business in Singapore, here are a few of the basics of conducting business in Singapore and also areas where Wellstead fiduciary services can be of assistance.

Company types in Singapore

There are three categories of business structure in Singapore:
  • Sole proprietorship
  • Partnership
  • Limited liability company
The profits from a sole proprietorship and general partnership are taxed as personal earnings. A limited liability partnership confers the benefits of a limited liability company whilst the income is still treated as personal. Limited liability companies' profits are taxed as corporate earnings and fall into three categories: private limited, public limited and foreign company. Wellstead Business Singapore will be able to advise on the benefits and drawbacks of each option available for registration.

Starting a  business in Singapore

The Accounting and Corporate Regulatory Authority (ACRA) oversees the registration process and ensures certain important requirements are met. Firstly, ACRA must be satisfied that the company name is unique and hasn't been registered before.

A physical address for the business must also be supplied, as well as details of the nature of the business and an appropriate SSIC code. Also, amongst other considerations, the identity and references of the applicant(s) needs to be checked.

It's important to note that those who aren't Singaporean citizens or permanent residents cannot self-register a business; Wellstead company registration services can  help with setting up your business in such circumstances.

Business management and maintenance

After the business has been successfully registered, attention needs to turn to the commencement of trading and the ongoing running of the business in a way that is most profitable.

Wellstead offer a number of services that can prove extremely beneficial to the business, including advising on any licenses and permits that may be required before trading can commence and ongoing matters of tax and wealth preservation. It is important for businesses to comply with the Singapore Companies Act and any subsequent amendments.

Producing and filing accounts and tax returns are also key requirements; Wellstead fiduciary services can ensure that a business is fully compliant with Singaporean financial regulations and can also advise on the setting up of trusts to consolidate wealth.

Overview of tax

One of the key benefits of locating a business in Singapore is the low-tax environment.

Corporation tax starts at 8.5 per cent up to earnings of 300,000 SGD and rises to 17 per cent over that amount. Personal tax is also low, with the maximum tax rate being just 20 per cent of earnings over 320,000 SGD.

Wellstead Consultancy Singapore has extensive knowledge of the current rules and regulations applicable to foreign nationals and can advise accordingly.