Singapore has always been an attractive country to conduct business in because of the plethora of benefits available from pro-business tax regimes to the stable political environment, which may seem enticing for foreign business owners.
What if we told you that there’s a way to convert your existing foreign company to one that is registered in Singapore?
What is Redomiciliation?
Redomiciliation to Singapore is a process whereby a foreign organisation transfers its registration from its original jurisdiction to the jurisdiction of Singapore. While they may sound similar, redomiciliation is entirely different from incorporating a subsidiary in Singapore or simply setting up an overseas branch. This is because the overseas branch of a foreign company will still be governed by the laws of its home country.
On the other hand, redomiciliation requires you to convert your foreign company into a Singapore-registered company in its entirety. With that, your newly-converted business will have to comply with the regulations in Singapore.
What are the benefits of Redomiciliation?
While it may sound like a daunting step to take, there are plenty of benefits behind converting your foreign business.
1. Continuity of the Business
Unlike registering a new overseas branch for your business, redomiciliation allows you to continue your business in Singapore without having to start from scratch. With that, the company remains the same entity and the only thing different would be the incorporation changes from an overseas country to Singapore. This also means that existing track records, goodwill, and credit ratings will be carried over after the company has been converted.
2. Tax Advantages
From a business point of view, Singapore has one of the lowest tax rates anywhere in the world. This is a huge advantage for overseas companies as it reduces a taxpayer’s monetary burdens. Furthermore, the amount of money supposedly allocated to tax can now be used for improvement of the business, be it in their operations, marketing efforts, and even logistics.
3. Displays Commitment in Conducting Business in the Region
Moving your company in Singapore is a great and effective indicator about your commitment in conducting business in the region. With the country’s strategic geographical location, not only are you in one of the busiest business hubs in Southeast Asia, but you are now also well-connected to countries anywhere on the globe. This will send a signal to key clients in the region and encourage them to invest in your Singapore-registered business.
Eligibility for Redomiciliation in Singapore
Now that you have discovered what it can do for you and your business, it’s time to find out your eligibility for redomiciliation in Singapore. To be eligible, ensure that your company has:
- At least 50 employees
- Total assets worth over S$10 million
- An annual revenue S$10 million
- At least 1 shareholder (The shareholder can be either an individual or a corporate entity)
- At least one local resident director (Singapore Citizen, Singapore Permanent Resident, Employment Pass holders are allowed)
- At least 1 local resident company secretary
- Minimum initial paid-up share capital of S$1.00
- A local registered address
What Are the Documents Needed for Redomiciliation in Singapore?
Once you are deemed eligible, you will need to submit a form for the Application for Transfer of Registration to ACRA, which is the responsible for regulating all business entities in Singapore.
Some of the basic documents needed for the application include:
- A certified true copy of your Memorandum of Association, Articles of Association or equivalent constitutional documents (which were submitted when originally incorporating your company in its country of origin
- A copy of the constitution which your company will use if successfully redomiciled as a Singapore company.
- Certified copy of your foreign certificate of incorporation or equivalent
To view the whole list of required documents, visit the official ACRA website.
What Happens After Redomiciliation?
There might be certain compliance requirements in Singapore that foreign business owners may not be familiar with. To steer clear of unnecessary struggles and difficulties in the incorporation process, it may be best to leave it to the experts who specialise in this area.
Aspire Kickstart offers the first same-day online incorporation and business account opening in Singapore from anywhere in the world. Say goodbye to long waits and hefty paperwork. Aspire Kickstart cuts through the stress and confusion that comes with incorporating a company and opening a business account in Singapore. The best part? It can be done all in one day with just a few clicks. Learn more about our online company incorporation packages.
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