Every business enterprise starts with a dream of success. Often, the first few steps you take can make or break the venture.
With MAL, we walk you through the process to forge a clear path for your business moving forward.
As a leading provider of company formation services in Singapore, whether registration or administration services, we provide critical support to companies big and small alike.
Registering a company is crucial to protect personal assets, provide a brand name, enhance credibility, lower tax obligation, facilitate smoother growth and for other reasons too.
For many, registering a company can be troublesome and a major hassle. It requires many documents and procedures in order to be executed.
With our professional approach, your business formation will be a breeze.
Our company formation/registration services include:
Private Limited Companies (Pte Ltd)
The most popular business entity, it has a separate legal status from its shareholders and directors who have limited liabilities for the debts and losses of the company.
Limited Liability Partnerships (LLP)
A LLP provides owners with the flexibility of operating as a Partnership while having a separate legal identity like a PLC. It is popular with professional services, such as lawyers, architects, accountants, and management consultants.
Limited Partnerships (LP)
A LP is a partnership with a general partner, who manages the business and has unlimited personal liability for the debts and obligations, and a limited partner, who has limited liability but cannot participate in management.
Sole Proprietorships
It is the simplest form of business entity. With one owner who is the decisive authority and is responsible for all assets and liabilities belonging to the business.
Foreign Company’s Affiliates (Branch Office, Subsidiary, Representative Office)
An affiliate is a company whose parent only possesses a minority stake in the ownership of the company. A subsidiary is a company whose parent is a majority shareholder.
Offshore Company Incorporation
Offshore company or International Business Corporation (IBC) means a company’s incorporation is based in a jurisdiction other than your own. IBC is usually set up in a tax haven, for instance, the British Virgin Islands (BVI), Marshall Islands, or Seychelles.
The British Virgin Islands (BVI) is situated in the Atlantic Ocean and only 96 km east of Puerto Rico, with a population of 25,000. It is the leading offshore jurisdiction, with over 750,000 offshore companies incorporated since 1984. It is a tax-free corporation designed for all international businesses with no annual reporting or auditing requirements. Besides, it does not ask for taxes on personal income, capital gains, or withholding tax. Last but not least, there are no exchange controls in BVI.
Situated in the Pacific Ocean, the Marshall Islands belong to a group of Micronesian islands. The Marshall Islands International Business Company (IBC) is eligible for exemption from corporate, personal income tax, capital gains tax, withholding tax and stamp duty or exchange controls with no annual reporting or auditing requirements. Additionally, there is no minimum paid-up capital in the Marshall Islands.
Seychelles is located in the Indian Ocean Seychelles, with a population of 80,000. It is an attractive business and financial centre for international organisations and is particularly popular in the maritime industry. Seychelles Offshore Companies enjoy no minimum capital and are tax-free corporations designed with no annual reporting or auditing requirements. Moreover, it does not ask for taxes on personal income, capital gains, or withholding tax. However, IBC must maintain a registered office in Seychelles.
Non-Profit Organisations
A non-profit organisation (NPO) is one which is not ambitious by profit but by producing benefits for others, commonly outside the membership of the NPO. NPOs are self-governed by a board of trustees or ‘managing committee’ or governing council, including persons who usually help in a fiduciary capacity. It is not compulsory to register as an NPO in Singapore. It will be hard to raise funds from non-members and unable to enjoy tax exemptions on the funds raised.
A registered NPO brings about a sense of clarity and formality. This status becomes a criterion that most donors use to assess requests for funds. Once it is registered, it is publicly accountable, and this creates a sense of trust.
Company Limited by Guarantee (CLG)
Company limited by guarantee is one which is the most desirable type of company structure and has members rather than shareholders. Members can benefit from joining a separate legal entity with limited liability. Other than that, companies have no share capital as members usually pay a predetermined amount to the liabilities of the company, which becomes due in the event of the company being wound up.
Last but not least, any surplus funds they collect from members are exempted from income tax. If more than 50% of gross revenue is collected from members, this amount is not tax-deductible for members. Companies must apply for Charity status after their company’s incorporation to enjoy full tax exemption in Singapore.
Society
NPO registered as a society is less formal than a Public Company Limited by Guarantee. It is fast, easy, and inexpensive to start-up. Registering as a society is suitable for a small group that functions by volunteers. It could be a club, company, partnership, or association of 10 or more persons, regardless of the business nature, and not already registered under any other law.
In taxation, society enjoys the same treatment as Public Company Limited by Guarantee. Any surplus funds they collected from members are exempted from income tax. If more than 50% of gross revenue is collected from members, this amount is not tax-deductible for members. Companies must apply for Charity status after their business formation to enjoy full tax exemption in Singapore.
However, members are exposed to societies’ liabilities as members are not separate legal entities from the societies.
Charitable Trust
An organisation created by a person and governed by a board of trustees is known as a charity trust. Rather than having an organisational structure, a charity is an issue of status. The trustees adhere to a deed that specifies their position inside the trust. All registered charities in Singapore are automatically tax-exempt. The charitable trust is suitable for running a scholarship or bursary. It is not required to have audited financial statements unless the trust deed is required to do so. In a broader sense, charitable trust enjoys limited public disclosure. Singapore Charities Act is responsible for governing all charities, and all charities must be registered with the Commissioner of Charities within three months of their formation.
However, it could be quite costly to set up a charitable trust in Singapore. Charity trust is not a separate legal entity as well. There is no accountability to a broader membership base, as trustees are the controller of everything.
An approved Institutions of a Public Character (IPC) is an NPO with charity status. IPCs are permitted by the Commissioner of Charities to enjoy tax-deductible donations made to these organisations. IPC status is suitable for those organisations that are not operated or conducted for profit. For instance, hospitals, public or benevolent institutions, public authority or society, university, educational institutions, charitable institutions, etc. Donors are eligible for tax deduction only when the donations are made to a charity that is an approved IPC.
If you want to establish a non-profit organisation in Singapore, you should work with a professional services company that can help you with the business formation or registration process and ongoing statutory compliance issues pertaining to the organisation. Contact MAL today!
Frequently Asked Questions
Forming a company creates a distinct legal entity separate from its owners, which provides limited liability protection, enhances credibility with customers and investors, and may offer tax benefits. It also formalises the business structure, facilitating growth and regulatory compliance. Many businesses choose to use company formation services in Singapore to streamline this process and ensure all legal requirements are met.
To incorporate a company in Singapore, you need to:
- Choose a company name and get it approved by ACRA.
- Prepare the necessary documents, including the company’s constitution.
- Provide details of shareholders, directors, and the company secretary.
- Register the company with ACRA, either online via BizFile+ or through a registered filing agent. Utilising incorporation services in Singapore can help ensure a smooth and compliant setup process.
The cost to incorporate a company in Singapore typically includes a registration fee of SGD 315 (SGD 15 for the name application and SGD 300 for incorporation). Additional costs may apply if you use professional services for assistance. Engaging business incorporation services can provide valuable support and potentially streamline the cost and process of incorporation.
Incorporating a company in Singapore is relatively quick, often taking only 1-2 days if all documents are in order and there are no complications with the application. Using company formation services in Singapore can expedite this process and ensure all steps are correctly followed.
The minimum paid-up capital to set up a company in Singapore is SGD 1. This low capital requirement makes it accessible for entrepreneurs to start their business ventures. Leveraging business formation services in Singapore can assist in meeting all initial setup requirements efficiently.
Ask Us Questions
If you have a query on our services, please drop us a note. We endeavour to reply soonest.
Build Your Business With Us
Our Professionals are certified under the following
