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Open a firm in Singapore for IT business

Why you should choose Singapore for IT business?

2020-08-24
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Many businesspeople strive to open a company in Singapore for IT business. This direction is promising and profitable. The main advantage of opening a firm in Singapore is the positive reputation of the state as well as the possibility of development for entrepreneurs from other countries. Tax legislation is characterized by loyalty.

How to open a company: stages and possible difficulties

Before choosing Singapore for IT activities, it is necessary to identify the advantages and disadvantages of doing business in the country. To be fully engaged in business, you need to keep books, pay taxes and fees and open an account with a reliable bank.

It is possible to implement a project at low costs. To learn more about the features of creating a company in Singapore, please contact our specialists at IT-OFFSHORE.

The process of establishing a company includes several stages:

  • The choice of a reliable agent;
  • Selection of the original name for the organization;
  • Defining the management structure (the most popular are Company Limited and Limited Liability Partnership);
  • Appointment of a director, company secretary;
  • Determining the legal address;
  • Preparation of documentation such as a memorandum and charter;
  • Drawing up the company's constitution;
  • Selecting a bank to open an account.

In addition, it may be necessary to hire employees, register with GST, search for investors to implement projects, purchase additional equipment, etc.

It is desirable to choose a memorable company name - you should not take names similar to well-known brands. It is possible to use a nominal service at the opening. A natural person with resident status in Singapore may become a secretary.

You can open an account for the company in Singapore or outside of the jurisdiction. When choosing a bank, you should consider the requirements for the user and account balances. It is important that the account opening procedure is simple and clear.

Registration and taxation benefits

Opening an IT company in Singapore is beneficial, as the economic and political situation is quite stable in the country. Both transport and information infrastructures are well-developed in the country.

The climate for investment is favorable, and the invested funds in most cases pay off and bring income. The financial services sector is especially developed. There are no restrictions on the flow of capital. There are privileges for new firms, and the risk of double taxation is low. If a firm is exempt from tax, most often it is not required to undergo an audit.

There are some difficulties in starting a company. Some of the major requirements include annual meetings of shareholders and directors, the resident status of the secretary, and finally, all information about the company is kept in the unified state registry. 

The corporate tax rate is 17%. The fee is paid from net profit fewer expenses. There are no fees for dividends and no capital gains. Singapore has a law on withholding the levy at the source. Non-residents contribute 15% of income earned within Singapore.

In which banks to open an account: Top 3 banks

One of the popular banks where you can open an account is Bank of Singapore. The term of account opening is 15 days on average. There is no need to provide recommendations. There is also no need to visit the organization.

Alternatively, you can open an account at OCBC Bank. The institution was founded in 1932. The account can be opened in 7 days on average, and there is no need to provide recommendations. It is possible to open both personal and corporate accounts. The obligatory condition of the opening is an exit to the bank.

It is possible to create an account in one of the largest banks in Singapore - DBS. It is one of the 100 largest banks in the world. It is possible to create an account for a company. On average, the opening procedure takes 2 weeks.

When applying to the bank it is necessary to prepare a package of documents. Most often banks ask for national and international passports, registration certificate, foundation agreement, articles of association, data on beneficiaries, data on the company's activity and direction of work, and finally registry of company management.

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