Business Immigration Singapore
Government Entities Relating to Business Immigration System in Singapore
Administration
The Immigration & Checkpoints Authority is responsible for regulating who enters and leaves Singapore. The ICA also:
-Issues student passes to those who wish to study in Singapore.
-Issues long-term visit passes to those who wish to live in Singapore for an extended period of time.
-Handles applications for Singapore PRS and Singapore citizenship.
The MOM is responsible for authorizing work passes to individuals who are not Singapore citizens or permanent residents of Singapore and require to work, train or carry on business in Singapore.
Enforcement
The MOM, using data profiling and reports from those who have lodged complaints, inspects and audits employers to ensure they are upholding the law with regard to non-discrimination and labor market testing. The ICA carries out raids to capture and deport illegal immigrants. The operations are supported and assisted by the Singapore Police Force, which enforces immigration law regularly as part of its patrols.
Legislative
Parliament is responsible for creating the initial laws related to immigration, like the Employment of Foreign Manpower Act and the Immigration Act. The Ministers for Manpower and Home Affairs have the power to make further legislation related to these Acts, including regulations, notifications, etc.
International Law and International Treaties
As a member of the World Trade Organization, Singapore is a party to the GATS. This means that employers who want to relocate intra-corporate transferees to Singapore are not required to undergo labor market testing when applying for work passes.
In addition, India and Singapore hold a Comprehensive Economic Co-operation Agreement. This agreement offers enhanced market access and economic cooperation between the two countries, making it easier for businesses to operate in both markets.
Application Procedure and Conditions
Individuals looking to start a business in Singapore must apply for an EntrePass. The application for an EntrePass must be made by the individual, and the business form must be required in connection with the EntrePass applications. This company may be registered only after EntrePass is approved.
If the organization is already registered, it shouldn’t be more than six months old while filing the EntrePass application. The EntrePass holders are treated as an employee of the company (although no minimum salary is required). Government fees for an EntrePass are SGD330.
The EntrePass application and business plan evaluation process usually take around eight weeks. This is done by MOM (the Ministry of Manpower to ensure everything is in order and the business is viable.
Benefits of Immigrating a Business to Singapore
The advantage of business immigration to Singapore is highly advantageous. The city-state is now one of the best places in the world to do business.
Singapore is known for its supportive business policies, easy process of conducting business, strong intellectual property protection, appealing corporate tax framework, and excellent connectivity.
It also offers a strategic geographical location near some of the world’s largest emerging markets, and diverse trade agreements with more than 100 regions across the globe.
Relevant read: Advantages of Registering a Company in Singapore
Not only is Singapore a great place to incorporate a subsidiary or holding company, but it’s also a top-notch financial center. If you’re a foreign company or high net worth individual, we can help you get all the paperwork in order so that you’re up and running in no time. And because Singapore is such a great place to do business, you’ll have access to private and government funding that can help your company or individual wealth grow.
Singapore is a great place to start a business because it offers a lot of flexibility when it comes to the type of business entity that you can incorporate. You can also choose whether to relocate to Singapore along with your company incorporation in the city-state and appoint a nominee resident director.
Ownership Structure of a Singapore Company
There are several options for the ownership structure of the business. The more common ones are:
- Subsidiary Private Limited company
- Branch office
- Representative office
Many businesses choose to operate as a limited liability company because it offers several advantages. For example, a limited liability company has a separate legal personality, meaning it can own property, hire employees, and enter into contracts in its own name. Additionally, the ownership proportions of a limited liability company can be changed by trading shares or issuing new shares, providing the business with greater flexibility.
The advantages of having limited liability and separate legal personality for a company are that the debts and other responsibilities of the company are not the direct responsibility of its directors, employees, or shareholders. This protects them from being held personally liable in the event that the company experiences financial difficulties.
Company Registration Options Available for Foreign Companies
The first and most ideal option for incorporating a Singapore private limited company is to set it up as a subsidiary or holding company of the foreign company in accordance with the Singapore Companies Act.
Once more, just as with foreign individuals, foreign companies have the option of incorporating a Singapore company by relocating its directors to Singapore through an Employment Pass.
Another option for foreign businesses is to set up a branch office in Singapore. This type of office is beneficial for business operations and revenue generation for the company in and around the region. Since the branch office is just an extension of the foreign company, it is not considered a tax resident by IRAS. Consequently, the branch office is not entitled to full tax exemption and other incentives available to locally incorporated entities. However, a branch office may still qualify for partial tax exemption.
If you want to explore the benefits of migrating your business to Singapore before taking the final plunge, setting up a Representative Office (RO) in the city-state is a great option. RO gives you the opportunity to test out the waters and see if relocating your business to Singapore is the right choice for you. Plus, it comes with a number of benefits that might just make the transition smoother and more successful.
When it comes to business immigration to Singapore, there are a few different scenarios to choose from depending on what the goals are for the foreign company or individual.
Corporate Taxation Benefits for Foreign Companies in Singapore
Singaporean tax-resident companies are charged a flat rate of 17 percent on their chargeable income, which is their taxable revenue less allowable expenses and other allowances. This tax applies to profits derived in Singapore as well as to foreign profits remitted to the country.
The corporate tax rate in Singapore is already quite low, and it becomes even lower when a tax-resident company takes advantage of all the government incentives, subsidies, and schemes such as the Productivity and Innovation Credit Scheme, and the Start-up Tax Exemption scheme.
The Startup Tax Exemption (SUTE) scheme is for qualifying new companies that are granted tax exemption on their normal chargeable income of up to S$300,000 for each of the first three consecutive years of operation.
Relevant Read: Taxation Overview Singapore
Wrapping Up
Singapore is a great place to relocate your business because of the many tax schemes available for companies. For example, all businesses registered in Singapore are given a partial tax exemption on their chargeable income of up to S$300,000.
But the scheme that is most beneficial for foreign companies looking to immigrate their businesses to Singapore is the Foreign Sourced Income Exemption (FSIE) scheme. The FSIE scheme allows businesses to exempt up to 70% of their foreign-sourced income from taxes. This is a great incentive for businesses to relocate to Singapore.
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