Do you have an Australian company, and are planning to expand and set up a company in Singapore?
With Singapore’s strategic location, business-friendly economic policies and a long-standing reputation as a regional business hub, Singapore is an awesome location for Australian companies looking to expand into Asia.
Singapore is among the top three easiest countries to do business in the world by the World Bank Group and, at the same time, is one of the world’s most competitive economies. There’s only a couple of countries in Asia where a foreigner like you can set up another branch and conduct business without too many restrictions, and Singapore is one of them.
If you are running an Australian company and would like to set up a company in Singapore, below are several things that every company looking to set up a company in Singapore should know.
Why Set Up a Company in Singapore?
Singapore’s consistently high rankings in global business reports are substantiated by the country’s stable economy. Singapore’s stable economy can be attributed to a national focus on human capital. In addition, Singapore values services and innovation which makes up for the country’s relative lack of natural resources and land, and you can capitalize on this when seeking to set up a company in Singapore.
Singapore is a leading regional hub for established industries such as manufacturing, financial services, logistics, healthcare, aerospace, and clean energy. In 2018, Singapore was ranked one of the best countries in the world to set up a new company in, due to its low corporate tax rates. This is in addition to its growing skilled workforce.
Australia companies incorporating in Singapore will benefit from a variety of pro-business policies like lower personal and corporate taxes, the Global Investor Programme (GIP), as well as step-by-step assistance offered by Singapore government agencies and local corporate service providers. There are many good third-party services you can turn to if you wish to incorporate a company in Singapore.
It is relatively easy to register a Private Limited Company in Singapore due to the low barriers of entry. The application for company formation in Singapore can be completed within 2 days! If you need a guide on how you can incorporate a company in Singapore with a service provider, click here for more guidelines.
Applying for Singapore Work Visas
There are several types of Singapore work visas that you may qualify for. Those most relevant to Australian companies and employees are:
- Employment Pass (EP) – for professional employees in managerial, executive or specialist roles earning a fixed monthly salary of more than S$3,600.
- Personalised Employment Pass (PEP) – for professionals who earn a fixed monthly salary of at least S$18,000. PEP holders only need to notify the ministry of manpower if they change jobs
- EntrePass – mostly for company entrepreneurs and founders, with no minimum salary requirements.
Register a Singapore Company
Once you have decided on the Singapore work visas, the next step that you’d need to do is to incorporate a company in Singapore with the assistance of a qualified corporate service provider. Here are some of the common Singapore company types that you can register:
- Subsidiary company – a private limited company incorporated in Singapore which can be fully foreign-owned. Will require at least a local/PR director.
- Branch office – a registered legal entity that is treated as an extension of the foreign parent company.
The process to incorporate a company in Singapore is a direct process and often can be done within a short period of time. The exception to this is companies that are in highly regulated industries such as finance, law, and media companies. Click the link before to learn more about the process to incorporate a company in Singapore.
Other key details
Australian companies incorporating in Singapore are usually required to hire a minimum of one resident director and are encouraged to create job opportunities for locals. If you plan on hiring both foreign and local employees, you may choose to engage payroll services in Singapore that can help process payroll and other HR matters.
As it is usually a complicated task when done in-house, choosing payroll outsourcing in Singapore can help maximize your productivity and allow you to focus on your business. Other benefits include informed and reliable advice from professionals, lower costs, and complying with regulations set by the Ministry of Manpower.
Processing payroll is a vital part of any business, and many companies prefer payroll services Singapore over doing so in-house.
Ready to start a company in Singapore? WLP group can help you kick start your dream business in Singapore today! It is important to note that foreigners are unable to set up a company in Singapore without a company registration service provider in Singapore. For more information regarding the application to start a business in Singapore, contact us for a free Singapore company registration consultation.