Lexon Incorporations: Corporate, accounting, trust
Lexon Incorporations: Corporate, accounting, trust
Singapore: PTY Company

General information about the country

Singapore is a city-state. Whilst the area of the country is only 718 km2, the density of population in Singapore is one of the highest in the world. In 1860 Singapore had only 80,000 inhabitants but today the population exceeds five million.

Singapore was a British colony prior to 1963 before becoming part of the federation with Malaysia for two years. Since 1965 it has been a fully independent state.

Singapore is one of the most politically stable countries in the world today. It is a recognized financial and business centre of the Far East.

Legislation

Starting from 1819, when the English diplomat Thomas Stamford Raffles signed a treaty with Sultan Hussein Shah on the British protectorate over Singapore for nearly 150 years, Singapore was a British colony. The Singapore legal system is therefore based on English common law.

Registration of companies in Singapore is carried out by the ACRA (Accounting and Corporate Regulatory Authority).

Singapore has been in the lead consistently in recent years in the world rankings for the most business-friendly jurisdiction. It has one of the lowest levels of corruption in the world.

Corporate characteristics:

Main:
Company typePrivate Limited Company
Corporate legislationCompanies Act 1994, Cap. 50
Language of company documentsEnglish
Corporate endingPte. Ltd.
Authorised capital:
Minimum amountSGD 1
Standard amountSGD 1
Standard currencySGD
Permitted currenciesAny
To be paidIssued shares have to be paid
Shareholders:
Minimum number1
Maximum number50
Publicly accessible recordsYes
Directors:
Minimum number1
Local directorMandatory
StatusOnly physical persons
Publicly accessible recordsYes
Secretary:
Minimum number1
Local secretaryYes; physical person
Publicly accessible recordsYes
Reports:
Filing an Annual ReturnYes
Fiscal yearEstablished by the company
Financial StatementsYes
Publicly accessible Financial StatementsYes
AuditorDepends on criteria (see below)
Filing a Tax ReturnYes
Corporate taxation:
On trading incomeTerritorial taxation principle
On passive incomeTerritorial taxation principle
Double Tax Treaty network:Agreements with more than 50 countries

Additional information on taxation

Singapore adheres to the principle of territorial taxation of income which means that the income that is generated outside Singapore, in most cases, is not subject to taxation.

Different reliefs are also applicable to taxable income:

To receive benefits under the double tax treaties entered into by Singapore, an individual application must be filed with the Singapore Inland Revenue. The application must state a particular jurisdiction showing the relevant Double Tax Treaty, as well as a specified amount of income for which the benefits have to be applied. Normally tax residence certificates of a general nature are not issued.

Financial statements are exempted from the certification by an auditor if the company is an EPC (Exempted private company) being where:

  1. The shareholders of the company are only individuals.
  2. The turnover of the company for the financial period does not exceed SGD 5 million.

Conclusions

A Singapore company has a well recognized image among entrepreneurs and official institutions because the jurisdiction has the status of one of the main financial centres in the Far East. They are often used by entrepreneurs for trading operations with business partners located in the countries of the Far East.

Singapore has repeatedly reaffirmed its status as one of the most convenient jurisdictions for business in recent years. This is due to constant improvement of the conditions of company registration and to the application of benefits in its taxation system.

Every Singapore company must appoint at least one resident director who monitors compliance regarding timely filing of financial statements, as well as the fulfilment of other obligations of the company in accordance with existing legislation.

http://lexcorp.com/en/jurisdictions/singapore/ - Singapore: PTY Company

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