A robust economy, well-developed capital markets and financial system, a rational tax system with low tax rates, strategic geographical location, stable political and economic climate, and excellent infrastructure are what make Singapore a top destination for individuals wishing to launch their startup. The goal of startup incorporation services in Singapore is to help make the process easier and simpler.
Granted, launching a startup in Singapore can be challenging, especially for individuals who are clueless about the legal and administrative aspects.
While the process for incorporating a business in Singapore is rather efficient, most people simply don’t have the time or don’t want to go through the hoops and somewhat frustrating process of having to abide by every regulatory requirement. This is where startup incorporation services in Singapore come in.
Having said that, why should you incorporate your startup in Singapore? What are the benefits?
Benefits Of Incorporating Your Startup In Singapore
Before we delve into the various startup incorporation services in Singapore, it’s essential that we understand the benefits of incorporating your startup in Singapore.
1. Tax benefits
Singapore has one of the lowest tax rates in the world. The country levies no tax on dividends received or on capital gains from a business. Its attractive tax system is what has made it a destination of choice for entrepreneurs from all over the globe who would love to launch their startups. A startup in Singapore can benefit from various tax incentives such as startup tax exemptions, angel investor tax deductions, and other tax exemptions.
2. Limited liability protection
Limited liability protection simply means that in the event that a company is sued, shareholders are only liable to the extent of their shareholding in the company. In other words, shareholders are only liable for the amount of money invested in the company, and their personal assets are protected from being liquidated.
If you incorporate your startup in Singapore and for some reason, your business goes bankrupt or you get sued for whatever reason, your liability is limited to the extent of the funds you invested in the company.
3. Credibility
There is a reason why Singapore has consistently over the years been ranked number #1 by the World Bank for ease of doing business. Its attractive tax system and robust economy serve to give your startup credibility and enhance its reputation.
For a startup that is keen on conquering new markets, this is key to attracting investors and customers.
4. No restrictions on the repatriation of profits or the import of capital
In Singapore, there are no restrictions on the amount of capital you can bring from your native country and invest it in your startup. This, without a doubt, gives you leeway to structure your company and formulate strategies for expansion without having to worry about capital restrictions.
Consequently, there are no restrictions for repatriating profits to your native country.
5. Significant support for startups
If there is one thing that stands out in Singapore, it’s that the Singapore government provides significant support for startups. Other than in-kind assistance, the Singapore government provides many grants as well as tax incentives to startups. These benefits are extended not only to local businesses but also to foreign-owned businesses.
Types Of Incorporation Services In Singapore
It’s imperative to note that there are various startup incorporation services in Singapore with each offering different levels of support and assistance. We will be looking in detail at the different types of incorporation services in Singapore with the goal to be in a position to make an informed decision.
Self Incorporation
Self incorporation is an option for entrepreneurs who have the experience, and knowledge, and are conversant with the startup incorporation process in Singapore.
With the self incorporation, as the name suggests, an entrepreneur undertakes to incorporate their startup by themselves without assistance from a professional.
That said, this option is not particularly conducive for individuals who are not familiar with the startup incorporation process in Singapore. Some of the risks associated with self incorporation include.
- Time-consuming: Incorporating a startup in Singapore can be a time-intensive process. Entrepreneurs who go their own way have to spend a lot of time researching, familiarizing themselves with any changes in law, and filling out the necessary paperwork. This can indeed be time-consuming and frustrating.
- Compliance challenges: While you might feel as doing it yourself is cost-effective, there is always the risk of not complying with all the necessary regulatory requirements. As an entrepreneur, if you choose to incorporate your startup without the assistance of experts such as My Business in Asia (MBiA), you are most likely to overlook certain regulatory requirements which might lead to hefty fines and penalties.
- Making Mistakes: The truth of the matter is, startup incorporation involves the filling out of numerous forms and submitting various documents. Entrepreneurs who are not conversant with the process are prone to making costly mistakes and the result is delays and unnecessary additional costs.
- SingPass login: You must also know that incorporating a company in Singapore requires to have a SingPass login access. This is not possible for foreigners who do not hold a proper work permit or a Permanent Residency status. Then self incorporation is also limited for foreigners to those who have already been to Singapore at least for work and have a valid SingPass.
Online Incorporation Services
Online startup incorporation services in Singapore are all about convenience, efficiency, and cost-effectiveness. Entrepreneurs are able to get effective services and choose from a range of packages that cater to their different packages and requirements.
For instance, MBiA offers online incorporation services for different packages that include holding investment company package, single entrepreneurs, young business, and established SMEs. The benefits of using online startup incorporation services include.
- Convenience: With online incorporation services, you don’t have to physically come to Singapore to incorporate your startup. With an internet connection, you can conveniently incorporate your startup from anywhere in the world.
- Ongoing support: Many online incorporation service providers such as MBiA offer ongoing support to entrepreneurs. The goal is to continually provide guidance on business-related matters and help them stay compliant with Singapore’s regulatory requirements.
- Cost effectiveness: It goes without saying that online startup incorporation services in Singapore are usually less expensive than full-service incorporation services. In light of this, they are cost-effective and a budget-friendly option for most entrepreneurs keen on incorporating their startup in Singapore.
- Streamlined process: Online incorporation services essentially have a streamlined process designed to be quick and easy. The goal is to help entrepreneurs save time and money. They don’t have to navigate the somewhat complicated incorporation process themselves.
- A Simple Cloud Platform to manage your company: MBiA has designed and developed its own corporate secretarial online platform. With high knowledge of the current issues and struggles of understanding and communicating with corporate service providers, MBiA designed its own platform for its clients to manage their companies from anywhere and any device!
With that said, we must stress that not all online incorporation services are above board. As such, due diligence is of the essence. There are those that may offer poor services as well as charge hidden fees.
It’s in your best interest to carry out proper research and choose a reputable online startup incorporation service provider in Singapore.
Full-Service Incorporation
Full-service startup incorporation is all about providing entrepreneurs with comprehensive support and assistance throughout the entire startup incorporation process. When we talk about comprehensive support and assistance, we are referring to services such as preparing and filing all the necessary documents, liaising with Singapore regulatory authorities, and providing ongoing support.
The benefits of using full-service incorporation services include.
- Expertise: Full-service incorporation providers are experts, understand the whole startup incorporation process, and are knowledgeable about Singapore’s regulatory requirements. The upside to this is that entrepreneurs can sit pretty in the knowledge that their startup incorporation process is in the hands of professionals who understand the process and have helped many startups before to be fully compliant.
- Time-saving: Time is money, right? Well, full-service incorporation helps entrepreneurs save significant time and hassle and let experts handle the startup incorporation process. They can use that time to handle other growth aspects of the business while professionals handle the whole startup incorporation.
- Ongoing support: When you enlist the services of MBiA, and choose the full package service, you can expect ongoing support in background checks, due diligence, and KYC exercise, familiarization of the Singapore employment laws, contracts and agreements, help with staying compliant with the Singapore regulatory requirements, and any other business-related matters.
However, as you probably already know, full-service incorporation is slightly more expensive than the other options but the benefits far outweigh the costs.
Factors To Consider When Choosing The Right Startup Incorporation Service Provider In Singapore
If you want to incorporate your startup in Singapore and wish to choose a startup incorporation service provider in Singapore, it’s important to consider a few key factors.
- Reputation: Choose a service provider that has been tried and tested and whose reputation is beyond reproach.
- Price: The cost of the services being offered is very important. It is important that you consider the cost of the services being offered and whether they are in tandem with your budget.
- Experience: Look for a provider with verifiable experience in incorporating startups in Singapore.
- Services offered: As there are different types of startup incorporation services in Singapore, it is essential that you choose a provider that offers the services you need. This could be online incorporation services or full-service incorporation.
In conclusion, incorporating your startup in Singapore is just a stepping stone toward taking your business to greater heights. When done right, it provides your business with legal protection and numerous benefits such as tax incentives, credibility, limited liability protection, and incredible ongoing support to mention a few.
While there are different types of startup incorporation services in Singapore, it’s imperative to choose one that offers you the best benefits.
We understand that launching and incorporating your startup in Singapore can be challenging. At MBiA we endeavor to make the startup incorporation process seamless, cost-effective, and efficient. We are industry experts, extremely familiar with Singapore’s local frameworks, and are greatly vested in the success of your startup. Try us today and let us help scale your business to greater heights!