To stay on par with the latest global requirements in terms of business while continuing to be a popular destination for the foreign market, the Singapore government has amended the Company Act as of the start of 2018.
One of the changes highlights the ease of moving an international business to Singapore through a straightforward procedure.
Below is a run-downs of the tweaks introduced to the Company Law.
Singapore Inward Re-Domiciliation Regime
The root of this re-domiciliation management for foreign businesses, which aims to relocate their services to a different country, took place two years ago with positive results.
The administration is open for small and medium-sized enterprises tempted to move their undertakings, minus establishing a branch office or subsidiary, to in Singapore.
Foreign businesses redomiciling to the country need to comply with two or all the following regulations:
- each financial year turnover does not exceed 10 million SGD;
- the rate of the total assets owned by to the firm at the close of each fiscal year needs to be of maximum 10 million SGD;
- the firm needs to have a limited number of fifty workers at the end of every fiscal year.
Types of Companies in Singapore
This country offers diverse business existences for establishments like a subsidiaries, branch offices, private limited companies, representative offices, etc. In a Singapore business guide provided by One Visa Singapore, you can learn about the most promising entities for your firm.
For large companies, they can also move their industries to the country.
This is done by re-applying their seats in their city-state after de-registering from the Companies Register in their home state. Nonetheless, they need to take into consideration aspects like buying land for offices or factories.
One of Singapore’s benefits is that it provides the most resilient commercial real estate sectors. This provides for places within the town or in one of the free areas where big businesses can build their relocated premise.
Other Requirements and Reasons to Relocate to Singapore
There are more demands under which a business can move to Singapore. One refers to the fact that the legislation in the foreign firm’s country of origin needs to cater for the re-domiciliation of companies. Moreover, the firm has to file documentation that confirms financial soundness. Other documents include:
- the registration documents through which the firm looks for re-domiciliation;
- slip showing payment of registration expense;
- original copy of business papers of the firm.
Within 60 days of relocation, the foreign firm must file evidence of de-registration with ACRA. The Company Register from the company’s origin country must issue the documents. Later, the transfer of businesses will be complete, and business activities can commence in the city-state.
Political stability in Singapore assures investors smooth business operations. Advanced technology in the country has also helped companies, along with the support offered by the government. The taxation system also provides numerous benefits, and the country has the lowest corporate taxes in the area.
Lastly, Singapore’s recognition as a global business center makes the region always worth considering for enterprises.