The benefits of incorporation can be seen in many different ways. One of the most commonly used reasons to incorporate is tax purposes. There are many great reasons why incorporating your small business incorporation Singapore may be beneficial but there are still some hoops that need to be completed before you can enjoy them all.
If you have any questions about the process of incorporation, this post will provide you with answers. For more detailed information, refer to the links at the bottom of this article or contact our experts at EZ-Corp today!
Singapore Incorporated Company:
You can incorporate your Singapore business using the Singaporean Business Registration Online (SBRO) system. The SBRO platform is designed to make it as easy as possible for you to register your company and also keep you up-to-date with ongoing registration requirements.
Benefits of Incorporation:
There are many benefits of incorporating your company in Singapore:
- Tax savings
Corporate tax in Singapore is 17% and there are also other tax incentives for small businesses. By incorporating your business incorporation Singapore Company will be able to deduct expenses from its taxable income. This means a lower net profit which can potentially save you thousands of dollars in taxes each year.
- Limited Liability
Any action that your business takes will be considered a legal obligation on behalf of the business. This means that if your company is sued for any reason, you are not personally responsible for the liabilities.
- Enroll in Government Grants
Depending on the industry you are in, there may be federal or state grants available to help small businesses expand their operations. You can gain access to these types of grants once your company is registered and accredited with the government.
- Compliance
When you become a company, you have to comply with the requirements set by government. By incorporating, you can be more proactive in your approach to compliance.
- Secrecy from Internal and External Auditors
A name and address is all that is required for incorporation. This means that your business incorporation Singapore financials will not be as easily accessible by external auditors or other agencies. Government agencies do not require much information about the company’s owners which makes it easier to stay anonymous within Singapore society.
- Employee Provident Fund (EPF)
The Employees Provident Fund scheme is a mandatory scheme that every Singaporean company must enroll in. This scheme makes contributions to your employees as they grow older and also provides them a lump sum of money when they retire.
- DBS Bank MasterCard® Credit Card
Once you are incorporated, you can apply for a DBS Bank MasterCard® Credit Card. The card will be issued with the name of your company or trust.
- Trademarks
As a registered business, you will automatically be able to acquire a unique Singapore Trademark from the Intellectual Property Office of Singapore.
- Business Fixed Line Number or Mobile Number
Once you have business incorporation Singapore, you can also apply for a fixed line number or mobile number with SingTel and Star Hub so that you can receive incoming calls and SMS messages at the number of your choice.
- Possibility of becoming a Professional Services Company
If your company Corporate Secretarial Services in Singapore to other companies, you can become a professional services company in Singapore. Once your company is registered with the Accounting & Corporate Regulatory Authority (ACRA), you can apply for an additional tax deduction of 10% on your tax bill.
There are 2 methods of incorporation: company and trust.
Company: Minimum Share Capital: SGD$100,000
You must have at least SGD$100,000 in funds to become a registered company in Singapore. If you do not have this amount, you can create a trust and have it function as your Singapore business entity.
Trust: Minimum Share Capital: SGD$100,000
You can create a trust to function as your business incorporation Singapore entity. If you do not have at least SGD$100,000 in the trust, you will not be permitted to register it as a company with the SBRO platform.
Once your company is registered with the SBRO platform, you will only have to fill out one registration form for each company and trust that you have.
Current Scenario in Singapore:
The current business environment in Singapore makes it easy for small businesses to thrive. With over 6 million people living in this country, there has never been a better time to start your own business. The low corporate tax rates and incentive programs offered by the government make it very attractive for local and foreign entrepreneurs alike.
However, it is still vitally important to incorporate your business as soon as possible. This will help protect you, the owner of the business, from any liabilities or legal issues that may arise. Proper incorporation will also allow you to take advantage of tax-saving strategies and other benefits that are only available to companies that are registered with ACRA.
If you are ready to incorporate your business incorporation Singapore and take full advantage of the many benefits of doing so, contact us now!
How to Incorporate Your Business In Singapore:
- Fill out all forms correctly:
If you want your company or trust to be registered with the SBRO platform, you must complete all forms correctly. You will be given a series of steps to follow in order to accurately complete these forms and ensure that they are completed correctly by the time your application is submitted.
- Register with SBRO:
Once you have filled out all forms correctly, send them to the SBRO office for processing. SBRO will then process your application, verify that all information is correct, and send it back to you for processing.
- Send documents:
Along with your application, you will also need to send us copies of all existing company licenses and final company documents. We will manually check these documents against the ones we have on file in order to make sure that they are up-to-date.
- SBRO will review and process your application:
Once your documents are collected, they will be reviewed by our staff. When everything is verified, we will send a final notification to your company and trust.
