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Company Formation in Singapore

Businesses are looking to incorporate companies in Singapore more and more with the current booming economy.

However, legal complexity, recent tax reform, and foreign trade barriers pose a challenge for company formation in Singapore.

NNRoad’s team of experts guides firms through the complex incorporation process, minimizing risks for smooth market entry.

Below you can take a look at the types of companies that it is possible to open in Singapore:

  • Limited Liability Company (LLC) - A LLC can be considered as a mix between a Partnership and a Corporation because of its similarities to both. Like a Sole Proprietorship/Partnership, finances are sent to owners for their personal tax returns. Additionally, it is also a separate legal entity like a Corporation and has similar liability protection, but there is no stock involved. This type of company suits for SME’s, Startups, and Entrepreneurs. A Singapore Limited Liability Company (LLC) is a very efficient tax entity. The effective corporate tax rate for Singapore companies for profits up to USD$ 220,000.00 is below 9% and capped at 17% for profits above USD$ 220,000.00.
  • Subsidiary Company - A Subsidiary Company suits small to medium-sized foreign businesses, this type of entity is the most preferred choice of registration in Singapore. A subsidiary company is a locally incorporated private limited liability company and in most cases, shareholders are another local or foreign company.
  • Branch Office - A Branch Office is a registered legal entity that is treated as an extension of the foreign parent company. if you are running a medium to a large-sized business that has specialized operations in international locations, and intend to conduct a wide range of business activities in Singapore, a Branch Office make it eligible.
  • Representative Office - A Representative Office is a temporary setup which enables foreign companies to research the market or manage company affairs in Singapore, However, It won’t allow conducting any profitable business activity.

Most Common Types of Entities in Singapore

Limited Liability Company (LLC) Subsidiary Company Branch Office Representative Office
Best for Small and Medium-sized companies (entrepreneurs) Small and Medium-sized companies Medium and large-sized companies Any type of companies
Shareholders 1 to 50 Another local or foreign company Parent company Parent company
Liability Flexible (ownership of a company may be transferred by shares) Limited (Assets cannot be held for the debts and liabilities of the subsidiary) Non-resident entity (held liable for any acts of commission) Limited (Without conducting any profitable business activity)
Legal Entity Legal Entity Separate entity (from its foreign parent company) Legal entity (extension of the foreign parent company) No legal entity (research and market exploration)
Tax Benefits & Incentives High favorable tax treaties Favorable tax treaties Limited tax treaties N/A
 

Discover our Total Market Entry Package

NNRoad offers a complete market entry solution for companies wishing to have local professional support during their market entry into Singapore.

This package enables you to hire employees even before your company is completely set up in Singapore.

Once your company’s formation is finished, NNRoad transfers all employment relationships to your new entity.

 
 

NNRoad's Company Formation Solution Includes:

  • Advise with the initial capital amount, if applicable.
  • Assistance with the selection of the entity name.
  • Assistance with the identification of key persons in the entity (e.g. director, shareholder, secretary, etc.).
  • Consult with the entity location, address registration.
  • Preparation and file entity registration.
  • With respect to foreign company investment, provide documents certifying the profile, authority, and authenticity of the signature of the foreign company and its representatives.

PEO Service/Employer of Record in Singapore

Hire and pay employees in Singapore while NNRoad handles all employer liabilities. No local entity needed! 

NNRoad is a Professional Employer Organization (PEO) that provides Employment Solutions in Singapore, also known as Employer of Record (EoR) services.

Many companies opt to outsource their employment to minimize costs and legal risks when expanding their business operations in Singapore.

NNRoad is specified in helping foreign companies navigate through Singaporeans employment laws and requirements, saving you time so you can focus on core business activities.

  • Legally hire local and foreign employees without a legal entity established in Singapore.
  • Our PEO service in Singapore includes: monthly payroll management, employer statutory benefits administration, individual income tax compliance, medical insurance, expenses management, and visa application (if employees are foreigners).
  • NNRoad becomes your in-country employer of record for dispatched employees in Singapore. You will still be responsible for the management of your employees.
NNRoad for employee outsourcing

NNRoad's PEO Service in Singapore Includes:

  • Hiring and termination of employees with the signature of local labor contracts..
  • On-boarding and off-boarding employees.
  • Contingent workforce management.
  • Complete payroll solution and statutory benefit administration.
  • Providing documents associated with employment.
  • Mandatory insurance compliance according to the local laws and contribution to government bureaus.
  • Employee tax management: Submission of IRA8 or IR21 form to IRAS.
 

Discover our Total Market Entry Package

NNRoad offers a complete market entry solution for companies wishing to have local professional support during their market entry into Singapore.

This package enables you to hire employees even before your company is completely set up in Singapore.

Once your company’s formation is finished, NNRoad transfers all employment relationships to your new entity.

 
 

Interested in exploring more about employee leasing in Singapore? Explore the below:  

 

Payroll Outsourcing Services in Singapore

 Full Payroll & Benefits Administration for Your Company

Payroll processing is a time-consuming business task, which is why many companies in Singapore seek payroll outsourcing services. 

Many companies based in Singapore have employees, both residents, and non-residents, and based on the employee’s residency status there are different aspects to pay including contributions to the Central Provident Fund (CPF), maternity pay, and leave and income tax plus the foreign worker's levy.

Managing your payroll, therefore, can become time-intensive and complicated. NNRoad provides a payroll services in Singapore that ensure all payroll activities are conducted in compliance with local Singaporean regulations and that all taxes are paid to the corresponding authorities. 

NNRoad’s Payroll Service in Singapore Includes:

  • Registering the necessary company and personnel information for payroll calculation in the payroll software and system.
  • Calculation of gross salary, salary deductions (i.e. social security insurance), and net salary based on information provided by the Company including irregular payments such as incentive/bonus, commission, allowance, severance, etc.
  • Payroll disbursement - Issuing payment notice to the Company for payroll distribution to employees and employee’s expense claims.
  • Employee’s enrollment and un-enrollment to the mandatory benefit plans.
  • Calculation and contribution of mandatory benefit plans. 
  • Maternity benefits management for expectant women employees.
  • Year-End Adjustment and Annual Declaration.

Tax and Accounting Service in Singapore

All companies registered in Singapore must keep proper books of accounts as stipulated by the Singapore Companies Act, NNRoad provides accounting and bookkeeping service that helps you fulfill the compliance requirements stipulated by ACRA and IRAS and avoid unnecessary penalties.

  • Full set accounting services in compliance with Singapore legislation and accounting standards.
  • Reconciliation of Bank Accounts.
  • Preparation of Profit/Loss statement and Balance Sheets.
  • Preparation of Trial Balance of Accounts.
  • Corporate and Personal Tax consultancy services in compliance with local tax laws.