How to start a business in Singapore from Malaysia
- 1. Starting a business in Singapore Why & How
- 2. Adam Loke Successfully helped hundreds of entrepreneurs and business owners launch their business in Singapore
- 3. Agenda 1. Business in Singapore: pros and cons 2. How to incorporate: requirements, process, costs 3. Moving to Singapore: Employment Pass 4. What can go wrong and how to fix it Q&A5.
- 5. Why Singapore 1. Simple and transparent regulations 2. Low Taxes 3. Great place to live
- 6. Simple and transparent regulations No need to give up ownership and managerial rights to locals Same laws for local and foreign companies
- 7. Low Taxes 4–17% corporate tax 0–22% personal tax 0% tax on dividends and capital gains Tax exemptions for startups
- 8. Malaysia and Singapore: tax comparison Malaysia Singapore 17% corporate tax 0-22% personal income tax 0% Capital gains tax 24% corporate tax 0-28% personal income tax 0-30% Capital gains tax
- 9. 4–17% effective corporate tax Corporate tax rate is 17%, but there are tax exemptions for startups on the first S$200,000: first S$100,000First 3 years: first S$10,000After first 3 years: next S$90,000 75% 75% 50% Profit Exemption S$25,000 S$2,500 S$45,000 Taxable S$4,250 S$425 S$7,650 17% tax
- 10. Great Place to Live 800,000 Malaysians live in Singapore Malaysia is 1 hour away No Corruption Simple Immigration Laws
- 11. Cons High Competition Strict Laws Expensive
- 12. Summary: Why Singapore 1. Simple and transparent regulations 2. Low Taxes 3. Great place to live
- 13. How to Incorporate How to Incorporate
- 14. How to Incorporate 1. Requirements 2. Process 3. Costs
- 15. Please meet ACRA Accounting and Corporate Regulatory Authority Main government organization for businesses. – Incorporates new companies – Makes rules and keeps compliance
- 16. Requirements: Documents 1. Passport 2. Proof of Address
- 17. Requirements • Company Name • Nominee Director • Corporate Secretary • Registered Address • Initial Capital
- 18. Process 1. Company Name – check availability with ACRA 2. Appoint a nominee director 3. Gather required documents for all shareholders 4. Appoint a registered filing agent
- 19. Costs Incorporation government fee S$300 Nominee Director for 1 year S$2,000 Registered Address S$240 Employment Pass Application S$800 Dependent Pass Application S$400 Assistance with Bank Account S$200 +S$2,000 security deposit
- 20. Summary: How to Incorporate 1. Requirements 2. Process 3. Costs
- 22. Moving to Singapore 1. Why Employment Pass 2. Requirements 3. Process
- 23. Why Employment Pass? Working visa per specific company Less complicated requirements than other visas Valid for 1-2 years and easily renewed Bring family under Dependant Passes Can become a Permanent Resident
- 24. Requirements 1. Fixed Salary minimum for University graduates average recommended salary to bring immediate family under Dependant Passes to bring family including parents 2. Professional experience 3. Education 4. Company business profile relevant to your position extra points for good university S$3,600 S$6,000 S$12,000
- 25. Process 1. Incorporate a company 2. Apply for Employment Pass 3. Receive it in 3-6 months 4. Apply for Dependant Passes for your family 5. Renew or apply for Permanent Residentship
- 26. Summary: moving to Singapore 1. Why Employment Pass 2. Requirements 3. Process
- 27. What can go wrong What can go wrong?
- 28. What can go wrong 1. The name is taken 2. Shareholders are rejected by ACRA 3. Company is rejected by the bank 4. Delays and rejections of employment pass 5. Living and business costs are higher than anticipated
- 29. Name is taken Why it happens 1. Similar name is already in use (e.g. Apple, Microsoft, Google) 2. Name is undesirable (e.g. contains keywords like “bank”) What to do 1. You can send an appeal to ACRA and wait for 14 days for approval 2. Choose another name :)
- 30. Shareholders are rejected by ACRA Why it happens Before incorporation ACRA performs a due diligence on all shareholders (e.g. checks criminal records). Any shareholder that fails the audit is barred from starting a company What to do Shareholders who do not clear due diligence cannot incorporate in Singapore. Sometimes you get rejected because there is a full name match with actual perpetrators. In this case you can appeal.
- 31. Company is rejected by a bank Why it happens Bank rejects a customer for a poor credibility record or because he is considered to be “not clean”. What to do Double-check that your credibility record and your overseas bank account are clean.
- 32. Delays and rejections of employment pass Why it happens 1. Officially the approval of employment pass takes about 3 weeks. 2. However, normally it takes up to 4 months. What to do 1. Hire a nominee director for a minimum of 6 months to allow for such delay. 2. In the meantime operate your business from Malaysia remotely.
- 33. Living and business are more expensive than you thought Setup the business S$6,000 Regulatory compliance S$2,000 per year Average salary of admin staff S$2,000 per month 3-bedroom apartment S$3,000 per month Food and entertainment Kuala Lumpur prices × 2
- 34. Summary: What can go wrong 1. The name is taken 2. Shareholders are rejected by ACRA 3. Company is rejected by the bank 4. Delays and rejections of employment pass 5. Living and business costs are higher than anticipated
- 35. How Osome can help How Osome can help?
- 36. What is Osome
- 37. How Osome can help 1. Free consultations 24/7 2. No need to come to Singapore 3. All incorporation services, including nominee director 4. Pre-approved bank account with OCBC
- 38. Q&A
- 39. Q&A 1. Do I need to fly to Singapore to open a business? 2. How much is it to run a company annually? 3. How many relatives can I bring with me?
- 40. Thanks!