Are you considering expanding your company internationally? If you decide to register a company in Singapore for your Indian business, it could be a strategic move. Singapore offers a business-friendly environment, a favorable location, and various incentives that make it an attractive choice. This dynamic city-state in Southeast Asia provides several advantages for individuals and organizations seeking to tap into the Asian market.
In this article, we'll delve into the benefits of setting up an Indian subsidiary company in Singapore, along with the necessary paperwork. This information can help you make an informed decision for your business expansion.
Choosing Singapore as the destination for an Indian company comes with several advantages that make it an appealing option for business expansion.
- Singapore is well-known for its commitment to upholding the law, its lack of corruption, and its thriving economy.
- The strategic location of Singapore, coupled with its strong business environment, streamlined processes, and favorable tax policies, has positioned it as a global hub for business and finance.
- Singapore offers significant tax benefits for Indian enterprises, including tax-free dividends, a lower corporate tax rate of 17% compared to India's 30%, and a Goods and Services Tax (GST) rate of 7%, which is lower than India's GST range of 5%-28%. These factors make Singapore an attractive choice for businesses looking to optimize their tax position.
Setting up an Indian subsidiary company in Singapore involves a series of steps that are important for a smooth process:
- Choose the Structure:Consider the pros and cons of different structures like a Liaison office, branch office, or a private limited company. Decide which one aligns best with your goals.
- Open a Bank Account:Establish a corporate bank account in Singapore to manage financial transactions and handle your subsidiary's finances efficiently.
- Name Reserving:Select a unique name for your Indian subsidiary company and reserve it. Ensure the name complies with Singapore's naming standards and doesn't conflict with existing trademarks.
- Prepare Incorporation Documents:Gather and submit the necessary incorporation documents to the Accounting and Corporate Regulatory Authority (ACRA) to officially establish your subsidiary.
- Achieve a Trade License:Apply for a trade license from relevant Singapore authorities. This license allows your subsidiary to conduct business activities in Singapore legally.
- Tax and GST Registration:Register the subsidiary with the Inland Revenue Authority of Singapore (IRAS) for tax purposes and adhere to Goods and Services Tax (GST) regulations.
- Obtain Business Permits and Licenses:Identify and acquire any required business permits and licenses from government agencies. This ensures legal compliance for specific activities carried out by your subsidiary. These steps collectively pave the way for a successful setup in Singapore.
To set up a Company in Singapore, you'll need to gather several documents.
- Declaration for Memorandum of Association (MOA)
- ID Proof
- Address Proof
- Pan Card
- Undertaking cum Declaration from the Director
- Certificate of Incorporation of the Foreign Company
- Address Proof of the Foreign Company
- Proof of Registered Office Address for the Indian Company
- Lease agreement, conveyance deed, or sale agreement.
- Electricity bill or society maintenance receipt.
- NOC (No Objection Certificate) from the lessor.
- Board resolution (only if the owner of the premises is a legal entity).
Collecting these documents will help streamline the process of establishing your Indian Subsidiary Company in Singapore.
In conclusion, setting up a company in Singapore comes with significant benefits, thanks to its business-friendly atmosphere, strategic location, and favorable tax regulations. Businesses have the option of selecting a branch office or a private limited company structure. The process includes steps such as reserving a unique name, submitting incorporation documents, obtaining a trade license, and registering for taxes and GST. Additionally, businesses need to ensure they secure any necessary permits and licenses.
The above note is subject to further study and clarifications. This note does not form an opinion from our end and before taking any decision based on above, it is recommended to consult our experts on the subject.Kamdar, Desai & Patel will not be liable for any damages (including, without limitation, damages for loss of business projects, or loss of profits) arising in contract, tort or otherwise from the use of or inability to use this article, or any of its contents, or from any action taken (or refrained from being taken) as a result of using this article or any such contents.