Setting up a Business in an overseas country is a dream and ambition for countless startups and existing businesses across the globe. Singapore is one of the hottest hubs for setting up business worldwide.
With access to the latest technology, picturesque infrastructure, skyscrapers, Singapore Government support, and many more benefits and long-term advantages, Singapore is undoubtedly one of the top countries on the list of people looking to set up business in an overseas country.
In this blog, we will walk you through how to set up a business in Singapore from Hong Kong effortlessly.
Why is Singapore one of the hottest hubs to start a business?
In Singapore, the procedure of setting up a business is quite straightforward and requires minimal time. With the proper documentation and following the correct procedure, you can set up your business in Singapore from Hong Kong on the same day.
The reason is that the information needed by Singapore Local Government Agencies to incorporate a company/business can be submitted online, which is offline in Hong Kong.
The following are the salient reasons to register a business in Singapore:
- 100% Ownership of your Singapore Company/Business.
- Registration of the Company can be done within hours.
- Taxes are low, and there is no tax on Capital Gain. Also, the treaty network is extensive.
Which Business Structures are available for registering Business in Singapore?
Before company/business registration, you must decide which company structure suits your business. We recommend answering the following questions for deciding the company structure:
- How much capital investment is required?
- How many owners will be there in the company/business?
- Do you want to for sole proprietorship for bearing the sole liability or not? If yes, refer to your existing on why & how to go for a sole proprietorship in Singapore.
- What are the advantages & disadvantages of different company structures?
- How much tax will you be paying under different company structures?
Once you have answered the above five questions, you need to decide which business structures you want to go with from the following four types of business/company structures:
- Private Limited Company (Pte Ltd)
- Limited Liability Partnership (LLP)
- Sole Proprietorship or Partnership
- Company Limited by Guarantee
Note: Private Limited Company (Pte Ltd) is one of the most favored business structures in Singapore for Company registration. You must choose the right business structure for foreign company registration in Singapore, which will affect your business taxation.
At Bestar Services, we provide foreign company setup and registration in Singapore. Our team will guide you through the entire procedure and help you select the right business structure for your company.
What do I need to start a company in Singapore from Hong Kong?
The following things are required to start a company in Singapore from Hong Kong:
You can check your company name to see if it is taken or not and register it with ACRA, the Accounting and Corporate Regulatory Authority of Singapore. It is Singapore’s National Agency that registers & oversees the businesses in Singapore.
Singapore Physical Address
You must have a Singapore Physical Address for ACRA to contact your company by post.
A Hong Kong Company Director needs a work pass (Singapore Employment Pass) to act as your company’s Local (Resident) Director. If you don’t have one, you must appoint a Local Resident Director of Singapore as your Nominee Director.
The Nominee Director must be a legal resident of Singapore (Citizen of Singapore or an EntrePass holder) and at least 18 years old.
You must appoint a Company Secretary within six months from the company incorporation date.
You need paid-up capital if you have opted for a Private Company (Pte Ltd) business structure. The amount for paid-up capital is between S$1 to S$1000. It can be in other currencies too. You can increase it any time after your company incorporation.
Refer to our article on how to raise funding for starting a new business in Singapore.
Do I have to visit Singapore for Company Registration?
No, it is not mandatory to visit Singapore for Company Registration. You can register your business online from Hong Kong or anywhere else. You just need an internet connection and a laptop/desktop to set up a business online in Singapore. You only need to fly once to open your business bank account in Singapore.
By contacting Bestar Services, we will help you conduct the entire process of setting up a business in Singapore from Hong Kong, from company registration to opening a business bank account, helping you save time & money.
We are one of the top business registration providers in Singapore and have helped 100s of individuals set up their businesses in Singapore from Hong Kong and other parts of the world.
How long does it take for Company Registration in Singapore?
You can get your business incorporated in Singapore within 24 hours with all the required documentation and paperwork. Applications are processed rapidly within a couple of hours.
At Bestar Services, we will help you gather the required documentation and paperwork on your behalf for company registration in Singapore.
Is it mandatory to have employees working in Singapore after company registration?
No, it is not mandatory to have employees in Singapore after you have registered your company. You can operate your business in Singapore without a single employee.
You can have a global online team for business operations. All you need is a Resident Director and a Company Secretary for your business in Singapore.
Can I move to Singapore after opening my business there?
Yes, you can move to Singapore after company incorporation & registration via a visa called Employment Pass. It takes around 6 months to receive Singapore Employment Pass. At Bestar Services, we have helped 100s of individuals obtain Singapore Employment Pass by assisting with required documentation and paperwork.
To qualify for Singapore Employment Pass, you need to pay yourself a salary, which shouldn’t be less than $3600 (starting pay of a fresher graduate in Singapore). If you have work experience, the salary should be between $6000 to $8000.
Singapore Employment Pass is required when you want to bring your family to Singapore, and they will need dependants’ passes.
What taxes do I need to pay in Singapore?
After company incorporation & registration in Singapore from Hong Kong, the next question that comes to the individual’s mind is what taxes I must pay in Singapore.
By setting up a business in Singapore, your source of income will be generated only in Singapore, and you will be taxed Corporate Tax and Personal Income Tax (according to the current tax rates).
Do I have to pay taxes in Hong Kong after setting up a business in Singapore?
Like Singapore, the Hong Kong Tax system follows a territorial income source principle to determine which sources of income are subject to taxation in Hong Kong. In Hong Kong, only the profits sourced from Hong Kong are taxable.
If you have set up a business in Singapore and earn profits from it, you don’t have to pay corporate tax to the Hong Kong Government.
After reading the blog, you will have comprehensive information regarding incorporating and registering the business in Singapore from Hong Kong.
However, if you have questions regarding setting up your business in Singapore from Hong Kong related to documentation, paperwork, costing, or any other, feel free to contact us, and our business registration advisors will assist you with the entire process.
At Bestar Services, we believe in helping every individual residing in Hong Kong or any other country abroad set up their business online in Singapore without visiting Singapore for any documentation or paperwork. We conduct the entire process online.
Refer to our blog on how to start an online business in Singapore in 7 easy steps for your reference.