PLLC is one of the most popular legal forms of companies established in Singapore. No wonder because this legal form allows the founders of companies to only bear liability to the extent of the capital amount they have contributed.
Moreover, establishing a PLLC means paying fewer taxes in Singapore. For the locals, anyone can register a company in Singapore if they are older than eighteen. However, foreign individuals cannot set up a company a Singapore at all. For non-residents, two options exist: use the services of registration agents or have one of the directors with local citizenship.
Conditions for registration
Everyone who is planning to register a company in Singapore should take into consideration these conditions:
- Name – to use the desired name, permission must be obtained;
- Local residency – at least one of the directors must have Singaporean citizenship;
- Number of founders – legally there can be 1-50 founders (locals, foreign individual, physical persons, or legal entities);
- Ownership – a company can be fully owned by foreign individuals;
- Secretary – directors or founders cannot be secretaries. A secretary must have the status of a physical person only;
- Contributed capital – starting capital can be one Singaporean dollar and can be increased later;
- Address – a company must be permanently based in Singapore.
Taxes
Only a small number of taxes apply to startups in Singapore. In fact, Singapore does not obligate them to pay taxes on dividends and capital. Moreover, if the company is conducting its business activities outside Singapore, no corporate tax is applied either. Yet if they provide their services in Singapore, the corporate tax rate is 17%.
Procedure
Usually, the registration procedure takes fourteen days. The whole process consists of:
- Company name reservation – a name is required to be different than any registered names, comply with TM rights, not be offensive. The reservation is held for two months;
- Application submission – all necessary documents have to be collected and submitted by an applicant to the relevant authorities;
- Evaluation of an application – the regulator reviews the documents and decides whether the registration can be granted or not;
- Incorporation certificate – once it was confirmed that the company can be registered, a certificate of incorporation is issued electronically;
- Opening a Singaporean bank account;
- Obtaining a license – some kinds of business activities such as financial services or import operations need a license to function in Singapore;
- VAT registration – if the company has a yearly taxable turnover higher than one million Singaporean dollars, it must be registered as a VAT payer with a tax authority (VAT rate is 7%).
Are you thinking about starting a company in Singapore and need more information about it? Arrange a personal consultation in COREDO to feel confident about your business plans.