The Republic of Singapore (SG) is an island nation situated in Southeast Asia between Thailand and Malaysia. Singapore is one of the key economic centers providing shipping, trade, technology, and financial services. Its economy is one of the most intensively growing financial systems on Earth. Entrepreneurs around the world prefer to incorporate start-up companies because of Singapore’s political stability with pro-business policies and extreme tax benefits.
The most common type of business entity being set up in Singapore is a Private Limited Company (Pte Ltd). It’s safe and cost effective with long term tax benefits. Registration of a Private Limited Company allows for shareholders’ personal assets to remain separate from a company’s liabilities and limits it with share capital because the company is a separate legal entity letting it be liable in its own name. It takes approximately 9 business days plus courier delivery time for incorporation and there is no minimum capital requirement.
Registered companies in Singapore have very attractive tax exemptions and incentives. For sourced Singapore income, a company will pay less than 9% for the first $300,000 in annual profits and a flat rate of 17% after that. There are no capital gains or dividend taxes either. Another added benefit of incorporating in Singapore is that as long as the company satisfies the qualifying conditions it can claim full tax exemption up to the first $100,000 or normal chargeable income for the first three consecutive Year Assessments (excluding Singapore franked dividends). Subsequently a 50% exemption is given on the next $200,000 of normal chargeable income for the same three year period.