Entity Formation & Setup in Singapore

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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.