Singapore is a location that many individuals and organizations in Vietnam always prefer to develop business here. The cost of establishing a company in Singapore is also not too high. Therefore, many individuals and organizations are planning to establish companies in Singapore. To establish a company in Singapore, in addition to understanding the conditions and procedures for establishment according to regulations, you also need to understand how much the establishment costs are. Let’s learn with Viet My about the cost of establishing a company in Singapore through the article below.

1. Types of foreign companies established in Singapore

Singapore law stipulates that foreigners are allowed to register to establish companies in Singapore in three forms as follows:

• Representative Office in Singapore (Representative Office)
• Branch office in Singapore (Branch office)
• Private Limited Company in Singapore. This is a type of company with separate legal status. The company name is often followed by the phrase “Pte Ltd” or “Ltd”.

The above types of companies are arranged in ascending order of rights and obligations (including the obligation to pay taxes, be subject to annual audits, and must have a Singaporean in their legal name…). Service costs for the three forms mentioned above are the same. However, with the first and second forms of company establishment, operations in Singapore will be limited.

2. Conditions for establishing a company in Singapore

If a foreigner wishes to establish a company in Singapore, the following conditions must be met:

• It is mandatory for the company to have a Nominee Director (Nominee Director) or SPR (Singapore Permanent Resident – person residing in Singapore). If the owner of the company is not resident in Singapore, it is possible to hire a nominated director who is resident here.
• The appointed director cannot interfere in the company’s business affairs but is legally responsible for the general operations of the company. The appointed director will undertake tasks as entrusted by the company owner. Therefore, the rights and obligations of this individual will be directly related to the company.
• If you want to self-perform the activities of a resident director in Singapore, you can consider living and residing in Singapore under the EntrePass or Employment Pass programs. However, to increase the company’s reputation before partners when provided with a company business license, the designated director should be selected as a Singaporean national.
• In addition to the designated director, after establishment, the company also needs to appoint an additional secretary who is a Singaporean national. Currently, foreigners can use the service of hiring a director’s secretary in Singapore to save costs.
• Company address in Singapore: The company office address in Singapore can be the address of the rented house, but permission from the housing authority such as Urban Redevelopment Authority or Housing Development Board must be obtained.
• Paid-up capital: This is a mandatory condition when establishing a company. According to Singapore regulations, the minimum charter capital to establish a company is $1 and there are no regulations on maximum capital or authorized capital.
• Company formation in Singapore can be done via the Internet. Therefore, people who contribute capital to establish a company here do not need to fly to Singapore to carry out procedures. It is only up to the point of opening a bank account that the company owner and company directors may need to be present in Singapore to speak to the bank directly about opening the account.
• If the company is established in Singapore by foreigners, the main administrative activities will be carried out online and through the company secretary. The company also does not have a printed copy of the company establishment license, but will have an electronic copy on the website of the Business Registration Authority in Singapore

3. Process of establishing a company in Singapore

* Necessary documents when establishing a company

Necessary documents and records required during the company registration process in Singapore include:

• The company name is intended for ACRA (Accounting and Corporate Regulatory Authority) approval
• A brief and complete description of the business activities of the company intended to be established with an industry code corresponding to ACRA regulations.
• Appoint at least one company director residing in Singapore (Nominee Director) with a Singapore citizen card and specific residential address.
• The company must have at least 1 shareholder, and the maximum number of shareholders is 50 shareholders
• Provide certificates of incorporation (Certificate of Incorporation) and charter documents of the company (Memorandum and Articles of Association) if the shareholder is a company. If the shareholder is a foreign individual, it is necessary to provide a passport and verified residential address.
• The address of the company’s registered office is in Singapore.
• Appoint a company secretary who is Singaporean. Note that the director and company secretary are not the same person.
• Register for an offshore investment license in Singapore at the Ministry of Planning and Investment. The time to apply for a license is about 30 days from the date of submitting the application. The total time to apply for an investment license abroad at the Ministry of Planning and Investment is about 30 working days from the date of submitting the application.

* Basic steps to establish a company in Singapore:

• Choose a name for your company and check its existence and validity against ACRA’s database. Proceed to register the name of the company
• Choose the type of company and determine the number of owners, company organization and shares of the company.
• Register your company with ACRA and submit necessary documents, including sample operating regulations, company registration and tax registration.
• Register the company phone number and address of the headquarters in Singapore for the company. This is the address used for authorities to contact the business.
• Open a company bank account and carry out procedures related to tax payment.
• Choose company representatives and determine their powers. This representative must be a Singaporean national.
• Identify the content of the company’s business activities, and draft it into a summary.
• Register your company to receive a business tax code and operate under Singapore law.
• Initiate business development activities, prepare annual reports and comply with ACRA and tax authority requirements.

4. Cost of establishing a company in Singapore

The cost of establishing a company in Singapore is divided into 2 types of fees:

• One-time fee: This is the amount of money the company needs to pay immediately for services such as: Company registration fee, company registration fee in Vietnam and Singapore, deposit fee, security fee or lawyer fee. engineers, etc. In general, these are fees that depend on the needs when establishing a company.
• Maintenance fee: This is a type of fee that must be paid on a regular basis, including fees for hiring a Director, fees for company operations, and fees for financial documents.

4.1 Necessary fees

The Singapore government requires all companies to have at least one local director in the company. Therefore, hiring a Singaporean director is mandatory.

• The annual renewal fee is calculated on the company’s establishment date each year:
• Service fee: 1200$
• Government fee: $1195
• Local director: $990
• Total: $3,385

4.2 Fees for opening a bank account

4.3 Included services (optional)

• Nominal director/shareholder: $699/year
• Fully equipped office (receiving letters, official dispatches, providing domestic phone numbers to connect to Vietnamese numbers): $894/6 months, $1632/year
• Accounting, Company Auditing: calculated based on the number of transactions.
• Company seal: $299

4.4 Viet My’s comprehensive company establishment costs in Singapore

Or you can use company establishment services from reputable service providers with reasonable and appropriate company establishment service fees.

Viet My would like to introduce cheap company establishment services in Singapore, with the most economical costs but still ensuring full legal procedures:

• Legal advice when establishing a company in Singapore
• On behalf of, company representatives work with state agencies
• Prepare all necessary documents and documents
• Deliver results in person
• Accompany you with legal and accounting issues during company operations.

5. Frequently asked questions about the cost of establishing a company in Singapore

5.1 What is the charter capital required to establish a company in Singapore?

When establishing a company in Singapore, the law does not have specific regulations on the minimum amount of charter capital when establishing a company. Therefore, when registering to establish a company with only 1 Singapore dollar, you can also register to establish a company here.

5.2 How many shareholders/company members can establish a company in Singapore?

At least 1 shareholder who is an individual or organization can register to establish a company in Singapore. Except for the partnership type, the minimum number of company members is 2.

5.3 What is the tax policy for companies established in Singapore?

A limited company pays corporate tax (0% – 17%) on its taxable income. Company owners or shareholders will not have to pay. Sole proprietorship or partnership owners will have to pay personal income tax (0% – 22%) on business income.

5.4 What are Singapore’s incentives when establishing a company in Singapore?

Singapore only charges corporate income tax at the current rate of 17%. Newly established companies are entitled to tax exemptions and reductions within the first 3 years, specifically as follows: The first year, up to 75% tax reduction for 100,000 SGD of taxable income; The next two years, there will be a 50% tax reduction for 100,000 SGD of taxable income;

5.5 How long does it take to register a company in Singapore?

The registration time to establish a company in Singapore usually only takes about 2 – 5 days but in reality some of these procedures may take longer.

The cost of establishing a company in Singapore has been answered by Viet My in the above article. If you are having difficulty establishing a company in Singapore or have problems related to the cost of establishing a company in Singapore, please contact Viet My immediately. To understand more, contact VIET MY LAW AND ACCOUNTING for a free refund consultation.