Singapore company setup

Why Choose Singapore !

1. Business Culture

• Singapore: Known for its business-friendly environment,  Singapore emphasises professionalism, punctuality, and a results-driven  approach. The country ranks highly for ease of doing business, driven by transparency, robust legal frameworks, and a low-corruption environment.  Networking and building long-term business relationships are key to  success.

• India: Indian business culture is diverse but often  characterised by a hierarchical structure and relationship-building as a  core principle. While business is conducted in English, there is more focus on networking, family ties, and traditional values in decision-making processes.

2. Tax Benefits

• Singapore:

• Corporate Tax: A low corporate tax rate of 17%. Startups       can benefit from tax exemptions: first S$100,000 of income is tax-free for three consecutive years.
• Personal Tax: Progressive rates from 0% to 22%, with no       capital gains or dividend taxes.
• GST (Goods and Services Tax): Set at 8% (as of 2023), lower compared to  VAT/GST rates in many countries.
• Avoidance of Double Taxation: Singapore has agreements with many countries, including India, to avoid double taxation.

• India:

• Corporate Tax: Ranges from 22% to 30% depending on company  type and turnover. Startups may qualify for exemptions under special schemes.
• GST:  Higher, with rates between 5% and 28%.
• Personal Tax: Up to 30%, with capital gains taxes on  dividends and investments.

3. Government Schemes and Support

• Singapore:

• Startup SG: A government initiative offering grants,  equity, and loans to startups. This includes the Startup SG Founder  program, which provides mentorship and capital grants.
• Productivity Solutions Grant (PSG): Supports businesses in adopting IT solutions  and equipment.
• Global Investor Programme (GIP): Investors can obtain Singapore Permanent Residency by investing in startups.
• SkillsFuture: Programs to up-skill employees and reduce  operational costs for businesses.

• India:

• Startup India Scheme: Offers financial aid, tax benefits, and  easier compliance for startups.
• Make in India: Focuses on boosting manufacturing by  providing incentives and promoting FDI.
• MSME Schemes: For micro, small, and medium enterprises,  providing loans, subsidies, and insurance.

4. Access to Funding:

• India: The venture capital scene in India has grown rapidly, with a notable increase in the number of investors interested in high-growth startups, particularly in technology and e-commerce. However, the competition for funding can be fierce, and access can vary significantly based on factors such as the industry, market potential, and geographic location. Moreover, while there are several private equity firms and angel investors, entrepreneurs may face challenges in securing funding in less developed regions.

• Singapore: Singapore serves as a financial hub in Asia, with a robust ecosystem for venture capital and private equity investments. The availability of funds is more consistent, and numerous investors are eager to back startups at various stages. Additionally, the Singapore government plays an active role in facilitating access to funding through grants and schemes like the Startup SG initiative, which provides financial support and helps bridge funding gaps for entrepreneurs.

5. Statutory Compliance:

• India: While India has made strides in reforming its regulatory environment, statutory compliance remains complex, with a multi-layered approach involving different levels of government (central, state, and local). Entrepreneurs must navigate a variety of regulations related to taxation, labor laws, and licensing, which can be time-consuming and cumbersome. The implementation of the Goods and Services Tax (GST) helped streamline some tax processes, but overall, compliance can still pose significant challenges for startups.
• Singapore: In contrast, Singapore is known for its straightforward and transparent regulatory framework. The country offers low corporate tax rates and has implemented various initiatives to reduce bureaucratic red tape. Compliance is generally simpler and quicker, with clear guidelines provided by government agencies. This ease of statutory compliance, paired with the government's proactive support, encourages more entrepreneurs to establish and grow their businesses in Singapore.

6. Company Setup Process in Singapore

                The process of incorporating a company in Singapore is straightforward and efficient, taking about 1 to 3 business days. Here's the general process:

• Step 1: Choose a Company Name: The name must be approved by the Accounting  and Corporate Regulatory Authority (ACRA).

• Step 2: Choose Business Structure:

• Private Limited Company (Pte. Ltd.): The most common, offering limited liability and tax benefits.
• Sole Proprietorship: Ideal for small businesses but offers no  separate legal identity from the owner.
• Partnership: Suitable for businesses owned by two or more individuals.

• Step 3: Appoint Directors: At least one director must be a Singapore resident (citizen, PR, or holder of a relevant visa).

• Step 4: Company Secretary & Shareholders: A company secretary must be appointed within six months of incorporation. Minimum one shareholder (individual or      corporate entity).

• Step 5: Paid-Up Capital: The minimum capital required is S$1.

• Step 6: Register the Company: Once all documents (Memorandum & Articles  of Association) are submitted and approved by ACRA, the business is officially registered.

• Step 7: Corporate Bank Account: Opening a local corporate bank account is  necessary for transactions.

7. Types of Companies to Incorporate in Singapore

• Private Limited Company (Pte Ltd): Most popular for small to medium-sized  businesses.
• Public Company Limited by Shares: Typically for large businesses planning to      list on a stock exchange.
• Sole Proprietorship: Simple structure for a single owner with  unlimited liability.
• Partnership: Shared ownership between two or more people,  with variations like Limited Liability Partnership (LLP).

8. Visa Availability with Company Formation

             Singapore offers several visa options for entrepreneurs:

• EntrePass: This visa is for foreign entrepreneurs who  wish to start and operate a business in Singapore. It is ideal for tech  startups and companies with innovative business models.
• Employment Pass (EP): Once the company is established, the business  can apply for EP for its foreign employees and directors.
• Dependent Pass (DP): Holders of the Employment Pass can bring  their families to Singapore with a Dependent Pass.

By comparing the flexible business culture, low tax rates, government schemes, and the ease of setting up a company, Singapore stands out as a prime location for Indian entrepreneurs looking to expand their businesses globally.