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Taxes are low, it’s very easy to start a company for both foreigners and locals, a foreigner can own 100% of a Singapore company, and the quality of life is high. The World’s Bank keeps naming Singapore the easiest place to open a new business.
No, you can open and run your business from abroad and you only need to fly in once to open a bank account. For everything else get a local service provider.
Sure. There’s a special type of visa called Employment Pass you can receive within 3-6 months. In order to qualify you need to pay yourself a salary. It must be no less than S$3,600 but that is a threshold for University graduates. If you are more mature, your salary should be about S$6,000, especially if you plan to bring family under Dependant Passes.
No, it’s not necessary. A foreigner can open a business in Singapore from abroad and not have a single employee there. As long as you have a resident director and a corporate secretary, you are fine.
To register a business in Singapore you need to have a local address, corporate secretary, and a resident director. A Corporate secretary is a person certified under various regulations responsible for lodging and filing in time all necessary documents required by law. As for the director, your company can have as many as you want, but at least one needs to be local. All three services are commonly provided by special agencies.
If you do not have someone who can play the role, hire a Nominee Director. For example, there can be two directors: you and the nominee. If you plan to move to Singapore, you only need the nominee service for 3-6 months while you apply for your Employment Pass. After that, you can be the only director.
A nominee formally holds director’s position, without any actual decision-making powers or authority to run the company. He is a company officer on paper, necessary to meet the requirements of the law.
Paid up capital can be just S$1 and you can increase it later if you wish, so that is not an issue.
S2900-S$5000 is the average cost of incorporation provided by local agencies. It should include company registration, government fees, and the first year of necessary services, such as nominee director, corporate secretary, and local address. The biggest part is the nominee director service. It costs at least S$2,000 plus you have to place a security deposit of another S$2,000. The deposit works as insurance for the nominee, you get it back when his contract expires. A cheaper option is to hire someone you know to be the resident director.
S$2,500-S$5,000 is the annual retainer for business management — nominee director, corporate secretary, annual returns filing and local address.
If you move to Singapore, you’ll also save on the nominee director service, but will pay for Employment Pass (S$800-S$1,500) and Dependant Passes (S$400-S$600).
S$50-S$500 cost licenses required by some businesses like tourism or alcohol sales. Cost varies depending on your industry.
Monthly expenses may include renting an office (S$800) or a co-working space (S$550), hiring employees (S$4,000 for a software engineer or S$1,700 for a security guard) and so on.
Malaysia and Singapore have a double taxation agreement, so you avoid being taxed twice on the same income. Here are Singapore rates:
This article was written by experts at Osome – online Incorporation, Secretary, and Accounting in Singapore. We help entrepreneurs to start and run business from Malaysia without calls or flights, or move to Singapore, too. We respond fast 24/7 in a secure chat. Learn more and get a free consultation on our site.