Trademark Registration

Formation of Singapore Company - Background

 

Accolade Corporate Services Limited

Rm 701-2, 7/F, Fu Fai Commercial Centre, 27 Hillier Street, Sheung Wan, Hong Kong.


Tel .+852 3521 2888
Fax +852 3521 2800
Email info@accolade.hk

........ info@accoladegroup.com.hk

 

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HK LTD......... +852 6567 0408

Offshore ..... +852 9635 6038

Accounting .. +852 6728 7840

 

 

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Background


Singapore sits off the southernmost tip of Peninsular Malaysia about 137 kilometers north of the equator. The Republic is made up of the island of Singapore, which is 42 kilometres long and 23 kilometres wide, together with about 60 smaller islands. The population is approximately 3,015,000.

Singapore has a history as a thriving port even prior to the arrival of Sir Stamford Raffles in 1819. From 1819 to 1823, Singapore was under British rule. In 1824 the East India Company gained sovereignty and in 1826 Singapore, together with Penang and Malacca, formed the Straits Settlements. After four years of military occupation and administration Singapore became a Civil administration and a British Crown Colony in 1946.

Self government came in 1959 and in 1963 Singapore joined in forming the Federation of Malaysia. In 1965 Singapore became an independent and sovereign republic and a member of the United Nations.

Singapore has a written constitution that provides for an elected Parliament of one house and a President. Parliament has a maximum term of five years. The President is the Head of State and is elected by the citizens for a term of six years.

Parliament passes Bills that become law once approved by the President. The Supreme Court has unlimited original jurisdiction in civil and criminal cases and consists of the High Court and the Court of Appeal. The Court of Appeal is the final appellate court of Singapore.


Law and Taxation

Singapore has a British based legal system and corporate law operates on a common law basis. Singapore is a signatory to a number of double tax and investment protection treaties which provide some tax planning and security advantages. A Singapore company with external investments that are correctly structured and administered may not be liable for tax on profits generated from activities conducted outside Singapore. From Year of Assessment (YA) 2008, companies are taxed at a flat rate of 18% on their chargeable income. A newly incoporated company that satisfies the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income (excluding Singapore franked dividends) for each of its first three consecutive YAs. Estate duty was abolished on 15 February 2008.


Advantages of Singapore Company

1. Limited liability for shareholders. This means that if the company fails, the shareholders may lose the entire value of their shares but no more, unless they have given guarantees.
2. A company has its own legal identity. This means that, it can enter into legal agreements, it can own property, it can sue and be sued all in its own name. It will continue to exist, even if its shareholders or directors die, resign or go bankrupt.
3. It is easier to transfer the ownership of a company than an interest in a partnership, as all that is required is a transfer of shares, subject to the company's consitution.
4. Clear structures are laid out in the Companies Act governing the organisation and procedures to be followed by companies.
5. The minimum number of shareholders and directors is one.
6. Companies may find it easier than partnerships to borrow, as they are able to create floating charges over its assets.
7. Incorporation is sometimes seen as supporting an image of status and credibility.
8. Exemption Private Limited companies owned by individual shareholders need not audit its accounts if the company's annual turnover falls below S$5 million.