Indian business owners who want to grow their companies abroad have long been drawn to Singapore. Indian founders have chosen the island nation as their next place to do business, which is not surprising. This is a great place to start your trip through Southeast Asia. The government is strong, and the tax system is good for businesses. This guide simplifies the process of how to register a company in Singapore.
Key Takeaways
● Singapore has low taxes, an agreement with India, and lets people from outside of Singapore own all a business. This makes it a great place for Indian founders to start their own businesses.
● A Private Limited Company is the best way for people who want to start their own business but don't live in the country to do it.
● You'll need a company secretary, a registered office address, and a director who lives in the area to become a corporation.
● Accounting, filing annual returns, and taxes are just a few of the things that need to be done to stay in compliance after a business is formed.
Why Singapore Appeals to Indian Entrepreneurs
Singapore is one of the top places to start a business. Knowing why is helpful before you start the process. Foreigners can own all the country's businesses. The corporate tax rate is 17%. There is no capital gains tax, and the country is a part of over 90 agreements that keep taxes from being taxed twice. India is one of these agreements.
Step 1: Choose the Right Business Structure
Many foreign business owners choose a Private Limited Company (Pte Ltd) because it avoids court, gives them a unique legal name, and builds investor and bank trust. Partnerships and sole proprietorships need people who live in the country, so they're not good for people who don't live there.
Step 2: Reserve Your Company Name
ACRA must approve your business name before you can start. There shouldn't be any forbidden words, and it shouldn't be too similar to something else.
Step 3: Appoint a Local Resident Director
Here's one of the most important things you need to do to set up a business in Singapore from India. One of the people who runs a business in Singapore must be a Singapore citizen, a permanent resident, or someone with an Employment Pass or Dependent Pass. A nominee director service is what most Indian founders who don't live in India use to meet their needs.
Step 4: Arrange a Registered Office Address
There is more than one thing a Singapore company needs than just a post office box. It needs a real address in Singapore. The address for this business should only be used during business hours.
Step 5: Prepare Your Incorporation Documents
Most of the time, you'll need:
● What the company is made of (memorandum and articles of association)
● Proof that directors and shareholders are who they say they are
● Details about the company secretary (hired within six months of the start of the business)
● Proof of where you live in court
Step 6: Submit Your Application to ACRA
When everything is ready, the incorporation is sent electronically through ACRA's Biffle+ portal.
Step 7: Open a Corporate Bank Account
As soon as your business is formed, you'll need a business bank account to start running. Lots of Indian founders choose digital banks based in Singapore or traditional banks with strong NRI banking desks because they don't need to be checked out in person by some banks.
Step 8: Fulfill Ongoing Compliance
It is important for your business to keep good accounting records; file yearly returns with ACRA and send tax returns to the Inland Revenue Authority of Singapore (IRAS).
FAQs
1. Can an Indian citizen fully own a company in Singapore?
Yes. People from outside of Singapore can own all a company's shares. This means that Indian business owners can run their own Singapore company without having to find a local partner.
2. Do I need to visit Singapore to register my company?
Not all the time. An incorporation service provider can help with most of the process so that it can be done from afar. But, depending on the bank, you might have to show proof of who you are in person when you open a bank account.
3. How long does it take to register a company in Singapore?
Many times, ACRA will approve incorporation in one to three business days if all the paperwork is in order. It could take longer if the application needs more work from the governing body.
