THE HISTORY: Singapore was once known as ‘Sea Town’ back in AD 1298 – 1299, when the first settlers came. The name ‘Singapura’ which is translated into ‘The Lion City’ was given by a Prince from Palembang, which is the capital of Srivijaya who was inspired by an unknown animal he happen to come across while out on a hunt. The animal was spotted at the location where Singapore is located to this day.

 

There use to be five kings ruling over the ancient city of Singapura. The city was located at the top edge of Peninsula Malay, which was used as a trading post for many sea farers and battleships. Singapore was eventually founded in the 19th century, by Sir Thomas Stamford Raffles, who used politics and trade as primary means.

 

Today, Singapore having evolved throughout the centuries, stands as one of the leading international financial centers.

 

 

CLIMATE AND TOURISM: Singapore generally enjoys hot and humid temperatures throughout the year. Whilst maintaining a stable level of rainfall on an annual basis, there is no specific attribute to dry or wet season. Singapore visitors enjoy exciting roller coasters, skydiving indoors activities, luxurious hotels and restaurants and much more.

 

 

DOING BUSINESS IN SINGAPORE: A company incorporated in Singapore does not have to be resident (depending on the location of central management and control), which in turn interprets to the fact that, provided that the majority of directors are resident in Singapore, the Singaporean business will be considered a resident of Singapore and vice versa. Many choose Singapore as it is widely known for its excellent infrastructure, convenient online portals and transparent legislation, which in turn, renders Singapore one of the easiest and fuss-free jurisdictions to register a business.  Singapore has been given the title of being the easiest place do to business in the world, whilst being a safe city, with low corruption, and the best location in the whole of Asia to work, play and live in.

 

TAXATION IN SINGAPORE: Corporate tax in Singapore has a rate of about 8.5% up to $300K profits and a flat 17 and over, whilst it enjoys no dividend or capital gain. There is no tax on estate, death or inheritance in Singapore, whilst personal tax rates start at 0% and reach the maximum of 20% for over $320K. Singapore also allows capital gain taxes not to be imposed, which in turn provides for a single-tier tax policy for income that was taxed at the corporate level and in addition there is tax free distribution ability for dividends to shareholders.

 

The government of Singapore has furthermore adopted the Goods and Services Tax (GST), which falls within the definition of a consumption tax. The GST is the lowest in the world, amounting to a total of 7% (whereas other jurisdictions use 16.4% or 10.5% for Asia -Pacific)

 

 

The main features in a Singaporean company are:

 

There are essentially two corporate vehicles to be established in Singapore:

 

1. Private Limited Company (‘Pte Ltd’); and

2. Public Companies.

 

Private Limited Company: Sets the maximum amount of shareholders to be fifty, and there are restrictions with respect to the right to transfer any shares.

 

Public Companies: Can have more than fifty shareholders, with the ability to also increase the number of the share capital through offering debentures and shares in the Company, to the public.

 

 

Basic Requirements:

 

• To be subject to Singaporean tax: a Director who is a Singaporean resident.

• A Director, exercising effective control (no residency requirement).

• There must be a registered agent in Singapore.

• Government Register of Shareholders.

• Government Register of Director.

• Submission of Accounts.

• Registered Office.

• Annual Accounts.

• Local Secretary.