ILN: Establishing A Business Entity: An International Guide

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[ESTABLISHING A BUSINESS ENTITY IN SINGAPORE]

(up to 24% with effect from YA2024)

(2) Corporate partners - corporate tax rate

(2) Corporate partners - corporate tax rate

(2) Corporate tax rate: Flat 17%

(Tax exemptions may be available where applicable)

One-time registration

Must appoint company secretary and auditor (unless exempted)

One-time registration

Financial statements to be audited (unless exempted)

Registration needs to be renewed

Registration needs to be renewed

Registration needs to be renewed

Registration

Annual declaration of solvency must be lodged by one of the managers

Annual Returns and financial statements to be filed etc.

Company statutory registers and records must be maintained

As long as registration is valid subject to cessation by a general partner according to the LP agreement and Limited Partnerships Act 2008

As long as registration is valid until owner’s death, bankruptcy or loss of legal capacity or the owner chooses to cease business

As long as registration is valid subject to partnership agreement and Partnership Act 1890

Until wound up or

Until wound up or struck off

Continuity

struck off

Tax Considerations All businesses are subject to tax on all profits that arise in or are derived from Singapore. Income tax is imposed on sole proprietors and individual partners whilst companies are liable for corporate tax. Goods and services tax (GST) will apply to businesses with revenue exceeding SGD 1 million over a 12-month period.

While the foreign-sourced income of an individual is generally not taxable, foreign income of a company that is derived from outside Singapore but remitted to and received in Singapore is taxable. Income Tax Singapore adopts a progressive personal income tax rate scheme capped at 24% from

ILN Corporate Group – Establishing a Business Entity Series

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