How to Start a Company in Singapore from Taiwan: A Step-by-Step Guide
Expanding your business into Singapore from Taiwan offers access to a dynamic market, strategic location in Southeast Asia, and a favorable business environment. This guide provides a clear roadmap for Taiwanese entrepreneurs looking to establish a company in Singapore, highlighting essential steps, costs, and compliance requirements.
Why Choose Singapore?
Singapore’s appeal to international entrepreneurs stems from its:
- Business-Friendly Environment: Streamlined processes for company registration and minimal bureaucratic hurdles.
- Tax Incentives: A flat corporate tax rate of 17%, with potential exemptions for startups
- Strategic Location: A gateway to the ASEAN region, facilitating access to emerging markets.
- Robust Infrastructure: World-class facilities and connectivity supporting business operations.
Step-by-Step Company Incorporation Process
- Choose a Company Structure: Most foreign entrepreneurs opt for a Private Limited Company (Pte. Ltd.), offering limited liability and tax benefits.
- Appoint a Local Director: Singapore law requires at least one resident director who is a Singapore citizen, permanent resident, or Employment Pass holder.
- Company Secretary: Engage a qualified company secretary within six months of incorporation.
- Registered Office Address: Provide a local Singapore address for official correspondence.
- Share Capital: Minimum paid-up capital is S$1, though S$1–S$10,000 is common among startups.
- Incorporation Documents: Prepare and submit the company constitution, director and shareholder details, and identification documents.
- Register with ACRA: Submit the application to the Accounting and Corporate Regulatory Authority (ACRA) for approval.
- Open a Corporate Bank Account: Choose a bank and provide necessary documentation for account setup.
Compliance and Ongoing Obligations
- Annual Filing: Submit annual returns and financial statements to ACRA.
- Tax Filing: File corporate tax returns with the Inland Revenue Authority of Singapore (IRAS).
- Audit Requirements: Companies meeting certain criteria must undergo annual audits.
- Employment Pass: If relocating to Singapore, apply for an Employment Pass to work legally.
Common Mistakes to Avoid
- Neglecting Local Director Requirement: Ensure compliance with the mandatory local director rule.
- Inadequate Record Keeping: Maintain proper accounting records to meet compliance standards.
- Overlooking Tax Obligations: Stay informed about tax filing deadlines and requirements.
- Ignoring Visa Regulations: If planning to relocate, secure the appropriate Employment Pass.
Final Tips
- Research Thoroughly: Understand the regulatory environment and market conditions in Singapore.
- Plan Financially: Ensure adequate capital for initial setup and operational expenses.
- Seek Professional Advice: Consult with legal and financial experts to navigate the incorporation process smoothly.
Embarking on the journey to establish a company in Singapore from Taiwan is a strategic move that can open doors to new business opportunities. By following the outlined steps and leveraging the support of reputable service providers, you can set a solid foundation for your business success in Singapore.