With Singapore becoming the Asia hub for large organisations, Hong Kong businesses are looking to set up their company in Singapore as well. The process of foreigners setting up a company in Singapore is easy if all the steps are followed correctly. Below is a Q&A on how to incorporate a Hong Kong business in Singapore.
The following are the top 7 common questions that we have answered so that we ease the process for you:
- Requirements to register?
- What is the company registration process?
- Why choose Singapore?
- Types of Singapore Business Entities?
- Can I relocate to Singapore?
- Are there corporate tax benefits?
- Must I be in Singapore to register?
1. Requirements to start a Singapore company?
Because a private limited company is the most commonly chosen business entity, below are the requirements to register a private limited company in Singapore.
In order to *register a private limited company in Singapore you will need:
- Local corporate secretary
- Minimum of 1 shareholder
- Minimum of 1 Resident Director
- Minimum of SGD 1 paid-up capital
- A registered Singapore address
The ACRA will send an Incorporation Email to you once your registration has been successful, this can serve as your Incorporation Certificate.
*Please note that you will not be able to register your company on your own. You will need an authorised filing agent or professional corporate service provider to help you set up your company in Singapore.
2. How long does it take to register a Singapore company?
The registration process will take one day if all the documents are signed and ready.
3. Why choose Singapore?
In Hong Kong, the process might be a hassle because of the need to sign documents in person. However, in Singapore, it is completely different! All you need to do is to gather all the relevant documents and sign them online.
Additionally, foreign companies benefit from the following, in Singapore:
- Taxes are low
- 100% ownership by foreigners.
- The registration process takes only about an hour.
4. What Singapore Business Entities are there?
The main business entities that are available in Singapore are:
- Limited Liability Partnership (LLP)
- Company Limited by Guarantee
- Sole Proprietorship or Partnership
- Private Limited Company (Pte Ltd)
Ideally, a private limited company is the preferred structure opted by foreigners when setting up a company in Singapore.
Answer these questions before choosing the business structure that suits your requirements:
- How much capital investment is required?
- What are the pros and cons of all the business structures?
- How many owners will be a part of the business?
- Is it easy to end the business entity?
- What is the tax policy under different entities?
- Will I be okay to be personally liable?
5. Can I relocate to Singapore?
Yes! You will first need to pay yourself a salary and then apply for an Employment Pass (EP). The minimum salary that you pay yourself must be above SGD 3,900 or if your family is accompanying you, it must be at least SGD 6,000- SGD 8,000. Your family will require Dependant Passes (DP). It will take around 6 months for an outcome, for your Employment Pass.
6. Are there corporate tax benefits?
The current corporate tax rate is 17%, for both local and foreign companies. In Singapore, the tax is determined based on last years income.
You will not need to pay taxes in Hong Kong for the income gained in Singapore. The Hong Kong government will only tax the income gained in Hong Kong. While the Singapore government will only tax the income gained in Singapore.
7. Must I be in Singapore to register my company?
No, you can be anywhere in the world and register your company in Singapore. All you will need is an internet connection.
How can Singapore Company Incorporation help?
As one of the corporate service providers in Singapore, Singapore Company Incorporation has helped numerous companies around the globe. We can help you set up your Hong Kong company in Singapore hassle-free.
Incorporate your company within an hour now!
Many Hong Kong businesses have trusted us to set up a company in Singapore.