Singapore company incorporation
Healy Consultants Group PLC
01 May, 2014
Singapore aims to attract innovative entrepreneurs who bring new technologies to the market and add value to the local economy. As a result, a growing number of investors are looking to set up a company in Singapore as the best way to turn their ambitions into reality. One Singapore government department, Enterprise One, has the specific aim of sparking enterprise and creating incentives for entrepreneurs. Company incorporation in Singapore can benefit from many government incentives, grants and other benefits available from Enterprise One.
First, there are many tax incentives available for start-ups in Singapore including i) R&D incentives for Start-Up Enterprises (RISE) Scheme that provides up to S $20,250 to companies spending at least SG $150,000 in R&D in the first 3 years of business. Also, tax exemption for start-ups giving 0% tax on the first S$100,000 of income in the first 3 years of business and 50% tax exemption on the next S$200,000 of income.
Second, equity financing are also available for start-ups in Singapore including Business Angel Funds (BAF), providing S$1 investment from SPRING SEEDS capital for every S$1 investment from a recognized Business Angel Group up to a maximum of S$1.5 million from SPRING SEEDS. In addition, Early Stage Venture Funding Scheme (ESVF) that provides up to S$10 million by giving S$1 from the National Research Foundation (NRF) for every S$1 invested by a third party investor â for technology start-ups only.
Other incentives include Enterprise One grants available for start-ups in Singapore such as ACE startups grant that provides first-time entrepreneurs up to S$50,000 in co-matched funds and the ideas.inc Business Challenge which provides up to S$65,000 of funding as well as mentorship, for young entrepreneurs to advertise and innovate their business ideas.
Singapore has one of the lowest corporation tax rate (17%) in the APAC region. The effective tax rate for startup companies is just 4%. For the first three years, startup companies are eligible for 100% tax exemption on the first US$78,000 and 50% tax exemption on the next US$157,000. Furthermore, it is possible to engage in offshore company incorporation in Singapore, which can be legally 100% tax-exempt. With Government transparency, a Singapore company can be incorporated within one week. Government incentives, favorable business environment, and quick incorporation process make Singapore one of the most attractive places to start a business.
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