Singapore continues to be a top destination for entrepreneurs worldwide, including Indian citizens, who want to establish or expand their businesses. Known for its business-friendly environment, strategic location, and robust legal framework, Singapore offers a gateway to Southeast Asia and global markets. For Indian entrepreneurs, setting up a company in Singapore can bring numerous advantages, including tax benefits, ease of doing business, and access to a skilled workforce.
If you’re an Indian citizen considering starting a company in Singapore, this guide will walk you through the essential steps, requirements, and tips to help you get started smoothly.
Why Choose Singapore for Your Business?
Before diving into the process, here’s why Singapore is such a popular choice:
- Ease of Incorporation: Singapore ranks highly globally for how quickly and easily businesses can be registered.
- Tax Efficiency: Corporate tax rates are low, capped at 17%, with several tax incentives for startups.
- Strategic Location: Singapore is a key hub connecting Asia, making it ideal for regional and global expansion.
- Stable and Transparent Legal System: Business laws protect investors and intellectual property rights.
- Access to Funding and Talent: Singapore has a vibrant startup ecosystem supported by investors and a diverse workforce.
- Double Taxation Avoidance: Singapore and India have a double taxation avoidance agreement, preventing double taxation on income.
Step 1: Decide Your Business Structure
The most common and recommended structure for foreign entrepreneurs is a Private Limited Company (Pte Ltd). It offers limited liability protection and credibility. Other options like sole proprietorships or partnerships are less common due to liability risks and lesser funding opportunities.
Step 2: Appoint a Local Director
Singapore law requires that every company has at least one director who is a Singapore resident. This means the director must be a Singapore citizen, permanent resident, or hold an EntrePass or Employment Pass.
As an Indian entrepreneur, you can apply for an EntrePass to qualify as the local director or appoint a nominee local director through professional service firms if you do not have local residency
Step 3: Choose and Register Your Company Name
Register your company name with Singapore’s Accounting and Corporate Regulatory Authority (ACRA). The name must be unique, not offensive, and comply with ACRA’s guidelines. Approval usually happens quickly, often within hours.
Step 4: Prepare and Submit Incorporation Documents
You need to prepare and file the following with ACRA:
- Company Constitution (similar to Articles of Association)
- Consent to Act as Director forms
- Identification and residential address details of directors and shareholders
- Registered Singapore office address
- Appointment of a company secretary (within 6 months of incorporation)
Professional corporate service providers can assist with document preparation and filing.
Step 5: Complete the Incorporation Process
Once documents are submitted and the name is approved, incorporation can be completed online through ACRA. The process is usually fast—taking 1 to 2 working days.
After approval, you will receive your Certificate of Incorporation, confirming your company’s legal existence.
Step 6: Open a Corporate Bank Account
A corporate bank account is essential for your Singapore company. Indian citizens must provide company documents, passports, and sometimes a business plan to banks like DBS, OCBC, or UOB.
Some banks require physical presence, while others offer online account opening depending on the bank’s policies.
Step 7: Apply for Relevant Licenses (if applicable)
Certain businesses, such as financial services, education, or food & beverage, require special licenses or permits. Ensure you research and comply with these regulations to avoid penalties.
Step 8: Comply with Ongoing Regulatory Requirements
Singapore companies must file annual returns, maintain accounting records, and comply with tax filing requirements set by the Inland Revenue Authority of Singapore (IRAS).
Non-compliance can result in fines or deregistration, so staying on top of these duties is crucial.
Additional Tips for Indian Entrepreneurs
- Take Advantage of the Double Taxation Agreement: This agreement between India and Singapore reduces the tax burden on cross-border income.
- Explore Employment Pass Options: If you want to work in your Singapore company, applying for an Employment Pass or EntrePass is necessary.
- Leverage Professional Help: Consulting incorporation specialists can save time and ensure compliance.
- Understand the Local Market: Networking and partnerships with local firms help in establishing a successful business.
Conclusion
Starting a company in Singapore as an Indian citizen is a promising opportunity to grow your business in a stable, efficient, and globally connected environment. The process is relatively straightforward with the right knowledge and support.
If you want to streamline your incorporation journey and get expert assistance, learn more with Savvy Platform – https://iamsavvy.com.sg/. Savvy offers tailored services to help Indian entrepreneurs establish and grow their businesses in Singapore smoothly and successfully.
Embark on your Singapore business journey today and tap into Asia’s vibrant markets with confidence!
