Tax exemption again and again, unique Singapore
[Investment Advantages]
According to World Bank statistics, Singapore's GDP in 2019 was US$372 billion and its population exceeded 5.7 million. Singapore's mature and developed financial and trade markets are world-famous. Singapore promotes a low tax system, is open to foreign investment, has a stable political environment, complete infrastructure, a clean government, a good regulatory mechanism and a high-level talent market, and continues to attract foreign investment.
Superior geographical location and investment environment
For many Chinese investors, Singapore is close to China, there is no time difference, and it can be reached in a few hours by plane, which is very convenient for communication and management of Singaporean companies. Moreover, Singapore's investment environment ranks among the best in many internationally renowned rankings. According to the "Doing Business Report 2019" released by the World Bank, among 190 economies around the world, Singapore ranked second for the third consecutive year, second only to New Zealand. Before 2017, Singapore ranked first for 10 consecutive years. The "2019 Global Competitiveness Report" released by the World Economic Forum shows that Singapore ranks first among 141 countries and regions in the world.
◎Attractive tax policies
Singapore implements a single tax system with fewer taxes, lower rates, and follows the principle of territorial taxation. After a company pays income tax, dividends distributed to shareholders are exempt from personal income tax. The corporate income tax rate in Singapore is only 0-17% (compared to 25% in China), and the highest personal income tax rate is no more than 22% (compared to 45% in China). In addition, there are a series of tax reductions and exemptions.
The Singaporean government continues to optimize the investment environment and has signed double tax avoidance agreements with over 70 countries, ensuring that companies and individuals benefiting from foreign income and assets are taxed only once. Capital gains, dividends, or income received by investors from overseas are exempt from tax, and assets obtained through inheritance or gifts are also tax-free.
Singapore's personal income tax follows a progressive tax rate system. After deducting exemptions and various tax reduction items, personal income tax rates range from 0% to 22%. The personal income tax exemption threshold is an annual income of 20,000 SGD (approximately 98,720 RMB). For individuals earning 320,000 SGD (approximately 1.58 million RMB) or more annually, the highest tax rate of 22% applies. Individuals earning less than 20,000 SGD annually are not required to pay personal income tax.
◎Registering a company is efficient and convenient
The procedures for registering a company in Singapore are transparent and simple, and there are fewer restrictions on the company, which is also a big plus for investors. To register a company in Singapore, prepare the company name, bank account, articles of association, company registration form and other documents, and submit them to the Accounting and Corporate Regulatory Authority of Singapore.
[Singapore Company Type]
◎Singapore Local Companies
Singapore's "local companies" are also called "ordinary companies" and there are two major types: local private companies and local listed companies. Most local companies are registered as limited companies, but they can also be registered as unlimited companies. All local companies are required to appoint a Singaporean, Entre Pass holder, or Singapore permanent resident as a director. The residential address and company address of the limited company operator can be located outside Singapore.
In Singapore, the most common company established by Chinese-funded enterprises is Private Limited Companies (PLC), and the number of shareholders of a Private Limited Company is less than 50.
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◎Singapore Public Company Limited By Guarantee
Singapore's non-profit organizations are divided into three categories: public guarantee companies (CLG), societies and charitable trusts (Charitable Trust). Among them, public guarantee companies are also one of the hot spots for investment in Singapore. The following table lists the main differences between PLC companies and CLG companies:
◎ Singapore Sole Proprietorship
A sole proprietorship is not an independent legal entity. It has only one founder who owns all the rights of the company and assumes unlimited liability for the company. Before registering the company name, the founder of a sole proprietorship must first fund the Medisave medical account.
◎ Singapore Partnership
A partnership can be established by 2 to 20 people. Partners will enjoy their respective rights and assume corresponding responsibilities according to the terms set out in the partnership agreement. A partnership is not a company entity, and partners are personally liable for the company. The partnership must complete the annual compliance process and submit an annual report to IRAS (Inland Revenue Authority of Singapore).
◎ Singapore Limited Partnership (LP)
An LP company is established by at least one general partner and one limited partner. The general partner (which can be a company or an individual) assumes unlimited liability for the company, while the limited partner assumes limited liability for the company according to the partnership agreement.
◎ Singapore Limited Liability Partnership (LLP)
Unlike an LP company, all shareholders in an LLP company have limited liability, which does not exceed their investment in the company. Since an LLP is an independent legal entity, shareholders are not personally liable for the company's debts or losses unless they are caused by the shareholder's own fault.
Regardless of the type of company, Jilian Enterprise Services can provide comprehensive and professional services, dedicated to offering high-quality international business solutions to assist companies in expanding abroad. The Jilian team continues to provide proactive, professional, and personalized services to solve clients' problems, fully participating in the planning, implementation, and tracking of solutions.
How to Register a Singapore Company, Singapore Company Registration Process and Fees?