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Business Organisations in Singapore

In Singapore, companies are principally governed by the Companies Act (Cap 50, 2006 Rev Ed) (hereinafter “the Act”). It should be noted though that specific types of companies may, in addition to the Companies Act, be regulated by other statutes.

Business organisations can either be incorporated or unincorporated. Incorporation involved creating a separate legal entity. The separate legal entity created can incur its liabilities and have its own rights that are distinct from those of the owners or creators of the entity. The most common forms of incorporated organisations are the company and the limited liability partnership, though there are others such as statutory boards and management corporations. The most common forms of unincorporated organisations are the sole partnership, the partnership and the limited partnership, though there are others such as business trusts.

Read: Comparison of Business Entities in Singapore

Setting up a wrong type of organisation to run a business may affect the business and may affect the owner of the business, although it may be possible to dissolve one form of structure and set up another. Generally speaking, the cost of setting up the wrong type of organisation may be higher than running the business.

Know the Types of Business Organisations First

Importantly before you start your business in Singapore, get to know about the types of business entity you could choose from.

There are 4 main types of business structures to choose from. They are:

1. Sole-Proprietorship (one owner) or Partnership (two or more owners)
2. Limited Partnership (LP)
3. Limited Liability Partnership (LLP)
4. Company

1.Sole-Proprietorship (one owner) or Partnership (two or more owners)

Definition: A business owned by 1 or more person

Registration requirements: Singapore Citizen/Singapore Permanent Resident/EntrePass

Legal status:

• Not a separate legal entity
• Owner/Partners has unlimited liability
• Cannot own property in the firm’s name
• The owner is personally liable for debts and losses of the business, Partners personally liable for partnership’s debts and losses incurred by other partners

Tax: Profits taxed at owner’/partners’ personal income tax rates

2. Limited Partnership (LP)

Definition: A partnership consisting of two or more persons, with at least one general partner and one limited partner

Registration requirements: If all general partners are ordinarily resident outside Singapore, they must appoint a local manager who is ordinarily resident in Singapore.

Legal status:

• Not a separate legal entity
• The general partner has unlimited liability
• The limited partner has limited liability
• Cannot own property in the firm’s name
• General partner personally liable for debts and losses of the LP

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

3. Limited Liability Partnership (LLP)

Definition: A partnership where the individual partner’s liability is generally limited

Registration requirements: At least one manager ordinarily resident in Singapore

Legal status:

• A separate legal entity from its partners
• Partners have limited liability
• Can own property in LLP’s name
• Partners personally liable for debts and losses resulting from their wrongful actions
• Partners not personally liable for debts and losses of LLP incurred by other partners

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

4.Company

Definition: A business form which is a legal entity separate and distinct from its shareholders and directors.

Registration requirements: At least one shareholder (could be a foreigner). At least one director is ordinarily resident in Singapore.

Legal status:

• A separate legal entity from its members and directors
• Members have limited liability
• Can own property in the company’s name
• Members not personally liable for debts and losses of the company

Tax: Profits taxed at corporate tax rates

Foreign Companies Considering Expanding Your Business to Singapore

If you are a foreign company planning to expand your business in Singapore. Here are options for Singapore company incorporation you may wish to know before proceeding further.

Before you decide on your business type, please note:

• A Singapore Representative Office would not be applicable if you do any income-generating activities.
• A Singapore Branch Office must have the same business activities and name as the parent company.

Read: Choosing a Business Structure

While some businesses choose to act on their own, others turn to Acrabiz or service providers for assistance. Designating us as your appointed agent has many advantages. Our clients have benefited from our physical availability to act for them all the time. Our works are organised and as the gatekeeper between your business and the authority, you can be assured the authorities will receive high-priority, quality paperwork every time. Nothing is accidentally lost or forgotten.

Need support to incorporate the right type of business? Let Acrabiz help you as your business advisor and corporate secretary!

What is GST?

Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.

In Singapore, GST is charged at the prevailing rate of 7%.

Taxable and Non-Taxable Goods and Services

Refer to the tables to find out which goods or services are taxable or not.

Taxable Supplies

Non-Taxable Supplies

When do you have to register your business for GST?

If your annual taxable supplies exceed S$1million, it is compulsory for you to register for GST.

Possible scenarios

Hereabouts are some possible situations you might face in your business for better understanding when GST is applicable.

Scenario 1. Local sales exceed 10% of total sales.  

Company A has overseas IT contracts worth S$1-2 million. It is confirmed that no GST is payable for international service. However, if total revenue with local income exceeds S$1 million in this financial year-end, should the company register for GST? Should it register after the end of the fiscal year? And after registering GST, should they also pay GST for the previous local sales (IT consultancy, web design, etc.) worth about S$300,000?

You will be liable to register for GST if your taxable turnover at the end of any calendar year is more than S$1 million (retrospective view) or if at any time, you can reasonably expect your taxable turnover in the next 12 months to be more than S$1 million (prospective view).

Retrospective view

From 1 Jan 2019 onwards, at the end of any calendar year (regardless of your business financial year-end), the total taxable turnover made in Singapore from 1 Jan to 31 Dec (i.e. consecutive months) is more than S$1 million.   

If your taxable turnover for the calendar year 2019 did not exceed S$1million, you will not be liable to register for GST under retrospective view.

However, if at any point in time, you forecast and expect the taxable turnover to exceed S$1 million for the next 12 months, you will be liable to register for GST. You will need to register on the 31st day from the date of the forecast.

You can only start charging GST from the effective date of GST registration given to you after approval.

The previous local sales of $300,000 were earned before the company registered for GST. Those are not liable to pay GST.

Scenario 2. Local sales are below 10% of total sales.

For example, sales revenue total is S$5 million.

Example 1

Total sales are S$5 million. Local sales (S$300,000) is 6% of total sales, but the taxable turnover has exceeded $1million (local sales S$300,000 + international service S$800,000). The company is liable to register for GST.

Example 2

Total sales are S$5 million. Local sales ($300,000) is 6% of total sales, but taxable turnover did not exceed S$1million (local sales S$300,000 + international service S$500,000). The company is exempt from registering for GST.

GST registration liability is assessed on the total value of taxable supplies exceeding S$1 million and not in terms of the percentage of local sales to total sales.

How to rent an apartment in Singapore?

After you decide to move to Singapore, one of the most significant challenges is finding accommodation that fits your needs and requirements. Here is some information on how to rent a flat or house in the Lion City.

City Areas

Singapore might be one of the smallest countries in the world, but it has a well-developed infrastructure with multiple areas. Numerous factors can affect your preferences on where to stay, such as office location, school or preschool availability if you move with children, distance from Singapore MRT stations, etc. 

Singapore is divided into five regions, which consist of 28 districts.

Singapore map. Picture: iProperty.sg

Each region has its pros and cons. The central area is close to the city core, central business district and many tourist attractions. In the western part, a crucial commercial centre is budding; this is where Jurong East is located. The eastern region is close to Changi Business Park and Singapore Changi Airport; The northeastern part is a mainly residential area, and the northern region is more intimate to the border with Malaysia.

Accommodation types

Here are three types of housing available in Singapore:

HDB flats

These are public housing managed by the Housing and Development Board of Singapore. Commonly referred to as HDB. 

Approximately 79% of the residents live in public housing. The housing estates usually have preschools, schools, supermarkets, clinics, hospitals, food courts (hawker centres) and sports facilities. 

Condominiums

If you enjoy strata living and higher-class housing estates, you can choose the condominiums, which usually provides 24-hour security service, swimming pools, gyms and barbecue pits.

Private houses

Even though in this land-scarce country, there are still many landed houses available for rent. These also include traditional shophouses in the city centre or terrace houses and bungalows in the lush green estates in the northern region of Singapore.

Renting the whole unit or just a single room is another option you can consider, depending on your budget. 

Rent Prices

Just as any developed countries, rent prices tend to be lower the farther you are from the city centre. Nevertheless, the price also depends on the type of housing, size, furnishings, and distance from transportation and amenities. Unsurprisingly, the rent prices will vary between units in the same estate.

In general, the price of renting a bedroom of a shared apartment starts from S$800. Rental of a one-bedroom flat usually starts from S$1700 per month.

Finding an Accommodation

To find a property to rent, you can refer to property websites, go through property agents, or search in Facebook groups and forums. 

The most popular property websites in Singapore are:

1. PropertyGuru https://www.propertyguru.com.sg
2. 99.co https://www.99.co 
3. iProperty https://www.iproperty.com.sg/rent/ 
4. Gumtree https://www.gumtree.sg
5. STProperty https://www.stproperty.sg
6. SRX Property https://www.srx.com.sg
7. Singapore Expats Forum https://www.singaporeexpats.com 

The fastest and hassle-free way is to engage a housing agent’s service. The agent hunt for the house or room according to your budget, bring you for viewing and facilitate the tenancy agreement process. 

Property agent fees

Note that for rental of housing in Singapore, agents can collect fees from only one party – either the landlord or the tenant. If the agent works for the landlord – you don’t have to pay any fees, but you would only view properties of landlords with whom agent works.

If you want an agent to look for properties without connections to specific landlords, you must pay the agent’s commission yourself. Usually, it starts from half of the 1-month rental for the accommodation you rent eventually. The commission depends on the length of the lease.

Sometimes you can find ads from landlords directly on forums or Facebook groups, which is the cheapest alternative, but you are on your own.

For someone who wants to settle into their lodging fast, they should consider engaging a housing agent.

Renting Procedure

Once you find the place you want to rent, you should go through the following procedures:

1. Make an offer

In this stage, you can bargain about the price and confirm your intentions with the owner. 

2. Sign a Letter of Intent

The letter confirms your intention to rent the place from the landlords and indicates that he will stop searching for tenants. Before signing, you should negotiate all the rental terms and conditions, such as repairs and maintenances that you will be responsible for, minimum lease term, security deposit, etc.

Often you need to pay the good faith deposit together with the Letter of Intent. This payment goes towards your security deposit after you sign the tenancy agreement. The security deposit is usually one (1) month’s rental for a one-year lease or two (2) month’s rental for a two-year contract. 

Make sure you fully understand your liabilities and the landlord’s recourse in the tenancy agreement.

3. Sign the tenancy agreement

4. Pay the rent

Be sure to pay on the date agreed in the agreement. Usually, you need to pay by a bank transfer from a local bank account. If you do not have an account, learn how you can open a bank account. 

How to become a Singapore Permanent Resident?

Singapore is a vibrant and multicultural megapolis that attracts people from all over the world. As they come and witness the life in Lion City, some decide to stay here forever. Of course, there are legal procedures for that. One of them is getting a Permanent Resident (PR) status. 

Singapore PR status allows you to:

• Eventually, apply for a citizenship and enjoy the same rights as locally-born Singaporeans;
• Enter and leave the country without applying for visas;
• Change jobs freely without reapplying for work permits;
• Sponsor your immediate family members (spouse and unmarried children under 21) for PR application;
• Apply for long-term visit passes for your parents;
• Enjoy subsidised fees for enrolling your children to governmental preschools and schools;
• Reap the financial and tax benefits provided by the government.

How to obtain a Singapore PR status? (link to this service on ACRABIZ website) 

According to the Immigration and Checkpoint Authority (ICA), you are eligible to apply for permanent residence if you are a/an:

• Spouse of a Singapore citizen or Singapore permanent resident;
• Unmarried child aged below 21 born within the context of legal marriage to, or have been legally adopted by, a Singapore citizen or Singapore permanent resident;
• Aged parent of a Singapore citizen;
• Holder of an Employment Pass (EP), Entrepreneur Pass (EntrePass) or S Pass;
• Student studying in Singapore;
• Foreign investor in Singapore.

ACRABIZ can make you closer to obtaining PR with our EP application service or Global Investor Programme support package.  

Getting a PR status for EP and EntrePass holders

Permanent Residence application for individuals holding Employment or Entrepreneur Pass is the most commonly used PR scheme. 

The question you properly have in your mind is «when can I apply for my Singapore PR after obtaining the work pass»? In theory, you can apply the day you start working in Singapore as a work pass holder. Although, you’d have to attach the six months’ payslip from your local employee. Therefore, to apply, you need to work in the country at least for six months.

Except for the six months’ payslip, you need to provide following documents: your passport, EP cards, birth certificate, educational certificates, testimonials from previous employees, as well as a letter from a current employee, stating the date of employment, the position held, salary per month for the past six months with a breakdown into basic, overtime and allowance per month. If you are married and have children, you are also required to attach all certificates and documents for your spouse and kids. EntrePass holders need to add a valid business registration certificate and occupational license pertaining to your employment.

Multiple factors can affect the outcome of a PR application, such as your education and professional background, the duration of stay in Singapore, financial status, charitable contributions to society, legal record. 

After collecting necessary documents and filling the form on the ICA website comes the most nervous part, which is waiting for an outcome. Try to sit back and relax. The result usually arrives within 6 to 12 months.

Getting a PR status through a Global Investment Programme (link to this service on ACRABIZ website)

To attract foreign investors to the island Singapore government introduced the Global Investor Programme (GIP). It allows you to get Singapore PR status through an investment to one of the GIP approved business sectors. 

The eligibility criteria for GIP applicants is as follows:

1. You must invest a minimum amount of S$2.5 million either directly in a Singapore company, in a GIP fund that invests in Singapore companies or a Singapore-based single-family office having Assets-Under-Management (AUM) of at least S$200 million (Option A, B and C explained below).
2. You must possess at least three years of entrepreneurial and business track record; 
3. You should currently be running a company with an annual turnover of at least S$200 million in the year immediately preceding your application, and at least S$200 million per annum on average for the three years immediately preceding your application; 
4. If your company is privately-held, you should have at least 30% shareholding in the company;
5. Your company must be engaged in one or more of the industries approved under GIP (listed below).

Singapore Economic Development Boards (EDB) defines the following investment options:

Option A: Invest at least S$2.5 million in a new business start-up or expansion of an existing business operation. 

You are required to submit a detailed 5-year business or investment plan with projected employment, expenditure and financial projections that will incur in the company. It will be assessed based on its feasibility, your role in growing the company, the business activities and providing workplaces for locals;

Option B: Invest at least S$2.5 million in a GIP-approved fund that invests in Singapore-based companies. 

You will be assessed based on future business or investment plans in Singapore. It includes specific details on proposed business activities, amount of investment, creation of local jobs.

Option C: Invest S$2.5 million in a new or existing Singapore-based single-family office having Assets-Under-Management (AUM) of at least S$200 million. 

You must submit a detailed 5-year business plan with projected employment and annual financial projections. The business plan will be assessed based on your role in your single-family office, the functions of your family office, your proposed investment sectors, asset types and geographical focus. 

GIP approved industries:

• Aerospace Engineering
• Alternative Energy/ Clean Technology 
• Automotive 
• Chemicals 
• Consumer Business (e.g. flavours and fragrances, food ingredients, nutrition, home and personal care) 
• Electronics 
• Energy 
• Engineering Services 
• Healthcare 
• Infocomm Products & Services 
• Logistics & Supply Chain Management 
• Marine & Offshore Engineering 
• Media & Entertainment 
• Medical Technology 
• Nanotechnology 
• Natural Resources (e.g. metals, mining, agri-commodities) 
• Safety & Security 
• Space 
• Shipping 
• Pharmaceuticals & Biotechnology 
• Precision Engineering 
• Professional Services, e.g. consulting, design. 
• Arts Businesses: visual arts businesses, e.g. auction houses, art logistics/storage and performing arts businesses 
• Sports Businesses 
• Family Office & Financial Services 

It will take approximately 9-12 months for a GIP Application to be processed. After the approval of your investment project, you should formalise PR status within 12 months.

Applying for Singapore PR status is a serious decision in your life which makes you one step closer to obtaining one of the world’s strongest citizenships. It also gives you and your family access to better opportunities and social policy standards.

What are the advantages of doing business in Singapore?

For years Singapore is attracting foreign investors and business people from all over the world. Almost all international giants, such as Facebook and Amazon, also have representations in Singapore. What makes the tiny island so attractive?

Singapore is one of Four Asian Tigers: Asian countries that underwent rapid industrialization and maintained an exceptionally high growth rate. The state consistently holds top rankings in international surveys:

Ranked 1st for Business Environment in the World 2019 by Economist Intelligence Unit

Ranked 1st for World’s most Competitive Economies in 2019 by the World Economic Forum

Ranked 1st in Asia and 8th in the world for Global Innovation Index 2019

Ranked 1st in Asia in the Rule of Law Index 2020, a World Justice Project

Ranked 1st in Asia for quality of living in Mercer’s Quality of Living City Ranking 2019

Ranked 2nd on a World Bank ranking for the ease of doing business reported on The World Bank, Measure Business Regulations 2019

Why should you consider doing business in Singapore? 

Boosting economy

Singapore has a well-developed free market economy. The key sectors are manufacturing, trade and financial services. The nominal GPD per capita is almost US$65.000, which puts Singapore within the top 10 countries of the planet.

According to Globalization and World Cities Research Singapore has an Alpha ++ rating, which means it’s highly integrated with the global economy. The country has no external public debt and a growing current account surplus. Singapore has been active in overseas investments.

Tax policy

Singapore has one of the world’s simplest and most attractive tax system. Singapore does not impose any controlled foreign company rules, tax on capital gains or inheritance tax, and it has one of the lowest corporate tax rates in the world. Currently, the corporate tax rate is 17%. Expectedly, after various governmental reliefs, incentives and schemes, it would be even lower than that.

Newly incorporated firms can receive tax breaks in their first three years, reducing their tax rate to 0% for the first S$100,000 income.

Singapore government also took care of avoiding double taxation for you. Here is the active list of existing international agreements on the Inland Revenue Authority of Singapore.

Why Singapore is considered tax heaven?

Fast incorporation process

Singapore is well-known for providing digital governmental services to make incorporation efficient and bureaucracy-free.

Singapore allows 100% company ownership for foreigners. You don’t need any local partners or shareholders. There are also no restrictions on foreign currency movements. 

And It usually takes less than a day to incorporate the company. Link to our Incorporation service.

Strategic location

Singapore is the logistics hub of Asia. It’s located in the centre of Southeast Asia, making it easy to reach any countries in the region. A flight to some of the world’s most important economies like China, India, Australia, would take a couple of hours. You would need to head to Singapore Changi Airport, which is rated as the World’s Best Airport for eight consecutive years. Changi is also one of the busiest airports in the world, in 2019 in catered nearly 70 million passengers. Port of Singapore is the third busiest port in the world by cargo tonnage.

Intellectual property protection

Singapore is ranked as a number one country in Asia in terms of Intellectual Property protection,

Efficient government

Singapore has one the most stable political environments in Asia, as well as the lowest level of corruption, transparent and effective government. The country provides competitive salary packages to civil servants to eradicate the temptation for corruption. The punishments for such offence are also very harsh, which makes it quite unappealing.

The strict law enforcement also makes Singapore one of the safest countries in the world.

Quality of living

Singapore qualifies number one for quality of living in Asia. Anyone who comes to the Lion City will be stunned by the well-developed infrastructure. This includes the airport, highways, public transport system, commercial buildings, city attractions, public parks, hotels, museums, malls, amusement parks.

You would also face a vibrant international-friendly community. Language barrier? Do not worry, almost everyone can converse in English here. English is the most common home language in Singapore.

Singapore’s education system is also internationally recognised. National University of Singapore (NUS) is consistently ranked within the best universities of the world. Bloomberg ranked Singapore’s healthcare system the most efficient in the world.

Overall, Singapore is a well-established country that provides a business-friendly environment for new foreign entrepreneurs.

Private banking consists of personalized financial services and products offered to high-net-worth individuals with high levels of income. It includes a wide range of wealth management services, such as portfolio management, tax services, insurance, trust and estate planning.

Benefits of private banking:

• One-stop financial services
• Concierge services
• Favourable rates and discounted charges
• Privileges from the banks

Being one of the wealthiest and most expensive cities in the world, Singapore is home to an estimated 44 billionaires. The Lion City offers a developed private banking services network. Let’s go through some of the strengths.

Bank of Singapore 

Bank of Singapore is a wholly-owned subsidiary of OCBC aimed at private banking needs exclusively. As of 31 March 2020, Bank of Singapore’s assets under management was US$104 billion. It is the only Asian private bank awarded AA1 rating by Moody’s, which stands for “very low credit risk”.

To qualify for Bank of Singapore private banking programme, you need to hold the minimum assets of S$5 million. 

Perks provided to clients of Bank of Singapore:

• Access to investment products (cash and money markets, investment-grade bonds, high yield bonds, equities, foreign exchange, hedge funds, etc.)
• Portfolio management and advisory services 
• Wealth management
• Trust services
• Access to exclusive events to learn and network

Bank of Singapore customers also gain full access to OCBC banking solutions.

DBS

DBS is the largest bank in Southeast Asia with total assets of S$579 billion as of 2019.

To be able to join the bank’s private banking programme, you need to hold investable assets of at least S$5 million.

Services provided to DBS private banking clients:

• Investment services and advisory
• Wealth management (liquidity planning, family office, tax planning, etc.)
• Trust services
• Life insurance and retirement plan

UOB 

UOB (United Overseas Bank) started operating in 1935. Today it has total assets of S$404 billion as of 2019.

To become a UOB private banking client, you should have a minimum of S$3 million assets. 

The perks provided to private banking clients by UOB:

• Personalized wealth and succession management
• Customized investment opportunities and portfolio management
• Credit solutions including margin trading facilities, bespoke credit facilities and aircraft financing

HSBC 

HSBC is a British multinational bank. It is the 7th largest bank in the world and the largest in Europe with total assets of US$2.558 trillion as of 2018.

The HSBC private banking programme requires you to hold the minimum assets of US$5 million. 

Services available for private banking clients:

• Investment and wealth management
• Advisory services
• Life insurance
• Family governance

CitiBank 

Citibank was founded in New York City in 1812. It has over 2500 branches in 19 countries and holds the total assets of US$1.917 trillion as of 2018. It opened a subsidiary in Singapore in 2004. 

To become a Citigold Private banking customer, you need to hold the minimum of S$1.5 million investable assets. 

You would get:

• Wealth management and advisory 
• Investment solutions (market-linked account, unit trusts, hedge funds, etc.)
• Insurance
• Property insights
  

Standard Chartered 

Standard Chartered is a British banking company represented in over 70 countries. It started operating in Singapore in 1859. As of 2019, it holds US$720 billion in total assets. 

To be a private client, you need to top up and maintain your account balances with the bank to at least S$1.5 million.

Standard Chartered provides its private clients with the following services:

• Wealth management
• Sustainable investment strategies
• Legacy planning

Therefore, the private banking services provided by different banks in Singapore are quite similar to one another. The only things defining your choice is your assets, needs and banking preferences.

Business Organisations in Singapore

In Singapore, companies are principally governed by the Companies Act (Cap 50, 2006 Rev Ed) (hereinafter “the Act”). It should be noted though that specific types of companies may, in addition to the Companies Act, be regulated by other statutes.

Business organisations can either be incorporated or unincorporated. Incorporation involved creating a separate legal entity. The separate legal entity created can incur its liabilities and have its own rights that are distinct from those of the owners or creators of the entity. The most common forms of incorporated organisations are the company and the limited liability partnership, though there are others such as statutory boards and management corporations. The most common forms of unincorporated organisations are the sole partnership, the partnership and the limited partnership, though there are others such as business trusts.

Read: Comparison of Business Entities in Singapore

Setting up a wrong type of organisation to run a business may affect the business and may affect the owner of the business, although it may be possible to dissolve one form of structure and set up another. Generally speaking, the cost of setting up the wrong type of organisation may be higher than running the business.

Know the Types of Business Organisations First

Importantly before you start your business in Singapore, get to know about the types of business entity you could choose from.

There are 4 main types of business structures to choose from. They are:

1. Sole-Proprietorship (one owner) or Partnership (two or more owners)
2. Limited Partnership (LP)
3. Limited Liability Partnership (LLP)
4. Company

1.Sole-Proprietorship (one owner) or Partnership (two or more owners)

Definition: A business owned by 1 or more person

Registration requirements: Singapore Citizen/Singapore Permanent Resident/EntrePass

Legal status:

• Not a separate legal entity
• Owner/Partners has unlimited liability
• Cannot own property in the firm’s name
• The owner is personally liable for debts and losses of the business, Partners personally liable for partnership’s debts and losses incurred by other partners

Tax: Profits taxed at owner’/partners’ personal income tax rates

2. Limited Partnership (LP)

Definition: A partnership consisting of two or more persons, with at least one general partner and one limited partner

Registration requirements: If all general partners are ordinarily resident outside Singapore, they must appoint a local manager who is ordinarily resident in Singapore.

Legal status:

• Not a separate legal entity
• The general partner has unlimited liability
• The limited partner has limited liability
• Cannot own property in the firm’s name
• General partner personally liable for debts and losses of the LP

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

3. Limited Liability Partnership (LLP)

Definition: A partnership where the individual partner’s liability is generally limited

Registration requirements: At least one manager ordinarily resident in Singapore

Legal status:

• A separate legal entity from its partners
• Partners have limited liability
• Can own property in LLP’s name
• Partners personally liable for debts and losses resulting from their wrongful actions
• Partners not personally liable for debts and losses of LLP incurred by other partners

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

4.Company

Definition: A business form which is a legal entity separate and distinct from its shareholders and directors.

Registration requirements: At least one shareholder (could be a foreigner). At least one director is ordinarily resident in Singapore.

Legal status:

• A separate legal entity from its members and directors
• Members have limited liability
• Can own property in the company’s name
• Members not personally liable for debts and losses of the company

Tax: Profits taxed at corporate tax rates

Foreign Companies Considering Expanding Your Business to Singapore

If you are a foreign company planning to expand your business in Singapore. Here are options for Singapore company incorporation you may wish to know before proceeding further.

Before you decide on your business type, please note:

• A Singapore Representative Office would not be applicable if you do any income-generating activities.
• A Singapore Branch Office must have the same business activities and name as the parent company.

Read: Choosing a Business Structure

While some businesses choose to act on their own, others turn to Acrabiz or service providers for assistance. Designating us as your appointed agent has many advantages. Our clients have benefited from our physical availability to act for them all the time. Our works are organised and as the gatekeeper between your business and the authority, you can be assured the authorities will receive high-priority, quality paperwork every time. Nothing is accidentally lost or forgotten.

Need support to incorporate the right type of business? Let Acrabiz help you as your business advisor and corporate secretary!

After moving to the new country, one of the first things you’d want to do is to open a personal account in the local bank. In this article, we would go through the requirements for Employment Pass holders to open a regular account in one of three leading banks of Singapore.

Local banks

DBS (Development Bank of Singapore) was set up by the Singapore Government in 1968. Today it’s the largest bank in Southeast Asia with total assets of S$579 billion as of 2019. It has branches in China, Hong Kong SAR, Taiwan, South Korea, Japan, Myanmar, Indonesia, Malaysia, India, Thailand, Vietnam, Philippines, United Kingdom and the United States. Walking around Singapore, you would also see a lot of POSB ATMs, which is a bank under DBS.

OCBC (Oversea-Chinese Banking Corporation) is the second biggest bank in Southeast Asia with total assets of S$491 billion as of 2019. The bank is represented in China, Hong Kong SAR, Macau SAR, Malaysia and Indonesia.

The third biggest bank in the region is also a Singaporean bank. UOB (United Overseas Bank) has total assets of S$404 billion as of 2019. Aside from Singapore, it operates in China, Hong Kong SAR, Taiwan, South Korea, Japan, Myanmar, Indonesia, Malaysia, India, Thailand, Vietnam, Philippines, Brunei, United Kingdom, Canada and the United States. 

How to open an account?

DBS allows EP holders to apply for a bank account opening online . You would only need to log in the systems using your SingPass, fill in the form and attach the required documents. DBS encourages new clients to apply online. That’s why the process is free of charge. If you still decide to go to one of the bank’s branches and open an account there — you would need to top up the initial deposit of S$3000.

OCBC and UOB allow online account opening only for citizens or Permanent Residents of Singapore . EP holders need to proceed to one of the branches and apply there. The initial deposit you need to provide upfront for both banks is S$1000.

Required documents

To open you an account, all of the banks would request the same records from you. You are required to provide:

1. Passport with at least six months of validity (biodata page);
2. Employment pass or In Principal Approval (IPA) issued by the Ministry of Manpower
3. Proof of residential address – the latest copy of any of the items below:

• In-Principle Approval (IPA) issued by the Ministry of Manpower
• Work permit of foreign domestic worker (domestic helper) issued by the Ministry of Manpower
• Letter of offer
• Letter of employment
• Latest payslip
• Local utility bill
• Local telecommunication bill
• Local bank statement/credit card statement
• Letter issued by the government of other public bodies regulated for AML practices in a FATF member country
• Letter from regulated insurance companies in a FATF member country
• Letter from school (restricted to official letters from educational institutions or schools under the purview of Council for Private Education or Ministry of Education)

Deciding which bank to choose is up to your preferences. Each of them provides customers with their privilege programmes and mobile payment systems. No matter which bank you pick for yourself, keep in mind that Singapore’s banking system is one of the strongest in the world. Therefore your assets would be safe. 

Priority banking in Singapore

Priority banking is designed for high net worth individuals who deal with significant transactions. The advantages of being a priority banking customer include priority queues, a personal relationship manager to handle all customers banking needs, better interest and foreign exchange rates and even more powerful loan packages. Privileges may include airport lounges, travel and golf club discounts. 

Of course, to become a priority banking customer, you need to place a certain amount of assets with the bank and meet some requirements. The assets can be either cash in savings accounts or fixed deposit accounts, or investments such as bonds, shares, unit trusts, ETFs and REITs. In this article, we will go through some priority banking programmes in Singapore. 

DBS Treasures 

DBS (Development Bank of Singapore) was set up by the Singapore Government in 1968. Today it’s the largest bank in Southeast Asia with total assets of S$579 billion as of 2019.

If customers place assets of S$350,000 with DBS Treasures, they can enjoy the real VIP treatment in the DBS Treasures Centres or ATM lobbies, exclusively for priority customers.

DBS Treasures customers can also enjoy the DBS Treasures Exclusive Safekeeping Centre where they can lock up their valuables. The centre is open from 8:30 am to 10 pm. This service comes with private parking and rest area.

Saving customers money, DBS has waived fees on telegraphic transfers and withdrawals abroad. 

OCBC Premier 

OCBC (Oversea-Chinese Banking Corporation) is the second biggest bank in Southeast Asia with total assets of S$491 billion as of 2019.

To be eligible for OCBC Premier banking, customers have to deposit or invest S$200,000. Eligible customers can receive a welcome reward of up to S$1,000 cash credit when they start a Premier banking relationship with S$350,000 fresh funds. 

Premier customers can access banking centres in mainland China, Macao SAR, Hong Kong SAR, Indonesia and Malaysia. 

Some other banking privileges include sending money overseas without cable and commission charges for foreign currencies and getting access to preferential fees for selected transactions.

The OCBC Premier VOYAGE credit card suits the frequent flyers. Card members receive 2.3 miles with every S$1 spent in foreign currency, 1.6 miles with every S$1 spent on dining in Singapore and 1.2 miles for every S$1 on local shopping. All miles accrued on this card have no expiration date. In addition, card members also enjoy concierge services, VIP premium airport lounge access and complimentary airport transfers with monthly minimum spends. Other benefits include golf privileges and up to 19% off at Caltex petrol stations with no minimum spending required.

UOB Privilege Banking 

UOB (United Overseas Bank) started operating in 1935. Today it has total assets of S$404 billion as of 2019.

To become a UOB Privilege Banking customer, customers need to place assets of at least S$350,000. UOB Privilege Banking provides wealth management services to high net worth clients around the world. Currently, there are seven dedicated Privilege banking centres and personal services in all 44 UOB branches in Singapore. 

Privilege banking customers are entitled to the UOB Privilege Banking Card, which offers the following odds:

• 60,000 air miles if customers pay for the annual membership fee;
• 2 miles for every $1 spent on overseas dining and retail;
• 1.2 miles for every $1 spent on everything else;
• 24-hour UOB Privilege Concierge service;
• Complimentary weekday green fees at Sentosa Golf Club.

Citibank Singapore

Citibank Singapore Limited is a division of Citibank N.A. of the United States and incorporated in Singapore on 28 June 2004. Its parent was awarded Qualifying Full Bank (QFB) status on 20 October 1999, and this status was transferred to the Singapore division on the day of its incorporation.

Now it has nearly 700 Citibank branches in the US and more than 1,800 overseas. It holds a total asset of US$1.917 trillion as of 2018.

Citibank has two priority programmes – City Priority and Citi Gold. 

To qualify for Citi Priority, customers are required to deposit S$70,000. In return, customers will get preferential rates and personalized services, lifestyle privileges and a personal banker.

The Citi Priority debit Mastercard will let customers withdraw cash without charges at Citibank ATMs worldwide.

Opening the Citigold account requires customers to deposit S$250,000 in the bank, but the perks are far more significant. The welcome gift is a jaw dropping S$7,484 or two business class return tickets to Australia, subject to terms and conditions. Customers will deposit S$500,000 in fresh funds, purchase S$250,000 of unit trusts or life insurance in the first six months and maintain a balance of S$100,000 till month 12.

As a Citigold client, customers are entitled to Citigold Debit Mastercard, which gives customers access to over 850 Mastercard airport lounges worldwide, 15% savings on medical and wellness packages. You can also enjoy exclusive member benefits, including free nights, room upgrades and special rates at over 500 independent properties in more than 80 countries around the world.

Maybank 

Maybank (Malayan Banking Berhad) is Malaysia’s largest bank with total assets of US$188 billion as of 2017. 

With S$300,000 in deposit, customers can open a Maybank Premium Wealth account and enjoy priority services at all its branches in Singapore and Malaysia, as well as Bank Internasional branches in Indonesia.

You will also gain access to Premier centres in Maybank Tower, Holland Village, Marine Parade and MSpace at Orchard. 

As a privileged client, customers are entitled to a Maybank Premier platinum debit card, which allows cash withdrawal in local currency from any Maybank ATM in Malaysia, Brunei, Philippines, Indonesia (BII ATMs) and Cambodia, without any service charge.

HSBC

HSBC Holdings is a British multinational investment bank and financial services holding company. It is the 7th largest bank in the world and the largest in Europe with total assets of US$2.558 trillion as of 2018.

The HSBC Premier programme requires customers to place a minimum of S$200,000 (or the equivalent in foreign currency). HSBC has offered S$400 as a welcome gift to qualified customers in this Premier programme. 

HSBC Premier MasterCard comes with the following perks:

• 5% cashback on everyday spend (both overseas and local);
• Discounts & privileges on dining, travel, hotel, shopping;
• Complimentary travel insurance coverage of up to S$1 million;
• Complimentary consultation and exclusive Premier rates on school enrolment services through education partners;
• Worldwide banking assistance extended to your children.

Standard Chartered 

Standard Chartered is a British banking company represented in over 70 countries. It started operating in Singapore in 1859. As of 2019, it holds US$720 billion in total assets. 

To become the SC Priority Banking client, customers need to bring in minimum fresh funds of S$200,000. You will be entitled to a welcoming bonus of up to S$6,000. 

Being a priority customer allows you to get a Visa Infinite credit card, which provides the following benefits:

• Earn 2.5 points for every S$1 spent on your credit card;
• Complimentary travel insurance worth S$50,000 each for you and your spouse when customers charge to your card at least once when overseas;
• Priority Pass lounge access;
• 24 hours Visa Infinite concierge service.

Therefore, picking which privilege programme to sign for is only up to your lifestyle and assets. Based on the funds customers have, here is a consolidated table of priority banking programmes available in Singapore: