With many global giants headquartered in Singapore, the city-state offers a favorable business environment for MNCs and start-ups alike. The World Bank’s annual Ease of Doing Business Index is proof enough of the fact, as Singapore seats comfortably at the second position among 190 other countries.
The island nation is a major e-commerce market, forecasted to grow at a CAGR of 16.2% by 2025. Further, estimates indicate that e-commerce revenue is set to grow annually at the rate of 16.23% to touch the projected market volume of US$11.45b by 2025.
Sounds lucrative? Let us give your ecommerce setup in Singapore a direction by exploring the benefits of registering your operations in the city. Yes, even if you operate virtually, it is mandatory to legalise the existence of your business entity. As per the Business Names Registration Act, if you have a continuous operation for profit-generation, you must register the business with the official registrar of companies in Singapore – the Accounting and Corporate Regulatory Authority (ACRA).
As a legal business entity duly registered with ACRA, you will accrue the following benefits in Singapore:
1. Protection from Liabilities
- Registering your business with a distinct name gives it a separate identity in Singapore, allowing it to operate autonomously with independent liabilities. This way, you keep your assets separate from the company’s holdings, meaning that in the unfortunate event of losses and debts, your assets will remain intact.
2. Minimal Tax Rates
- Singapore has a very rational tax system, allowing new firms significant tax breaks for a stipulated period. In Singapore, personal tax rates can be up to 22%, while business taxes are capped at 17% only. This advantage is besides the multiple tax benefits, exemptions, and cuts that the Singapore business community enjoys.
3. Smooth Licensing
- To conduct your business without any hiccups and avail of various government schemes that support corporates, you’d need specific official permits and licenses. Being registered with ACRA facilitates the process of obtaining multiple relevant licenses in Singapore from the GoBusiness Licensing portal.
4. Reserving the Domain Name of Your Choice:
- With the successful registration of your business with ACRA, you can apply to the national internet registry – Singapore Network Information Center (SGNIC), to reserve up to five domain names with .sg or .com.sg suffixes for your web-based platform.
5. Trademark Registration
- Armed with your company incorporation documents, register the trademark of your business with the Intellectual Property Office of Singapore. Your chosen trademark allows you exclusivity to use the symbol in distinguishing your products from other similar offerings by competitors.
- Apart from registering your business with ACRA and getting your licenses, trademarks, and domain names to start operating in Singapore, several other facets of digital business warrant your attention for smooth operations. For example, you’ll have to regulate your digital activities in compliance with the Internet Code of Practice, besides keeping your web content in line with the Broadcasting Act.
Our team at Bestar offers comprehensive company incorporation services to facilitate your business setup in Singapore, alongside post-registration advisory in accounting, auditing, and compliance activities. Let’s have a discussion today!