Immigration consultant's notes. Startup in Singapore.

How to choose a country for the development of your startup? Attracting innovators has become a common goal for many states. Governments lower taxes, “launch” venture funds and incubators in the hope of providing the most favorable conditions for the next generation of “unicorns”.

Singapore isn't an exception. Over the past 10 years, the World Bank has ranked Singapore top three leaders among 190 countries in the simplicity of organizing & conducting business. A startup, ready to work in Singapore, will be able to avoid administrative red tape and excessive financial burden if it adheres to the simplest corporate rules: comply with accounting standards, pay taxes on time, keep personal data of employees and customers, follow the principles of open competition ...

An attractive and market-oriented corporate tax policy: corporate tax rate is 8.5 or 17% depending on the amount of taxable profit, tax on dividends - 0%, tax on capital gains - 0% ...

Personal income tax starts at 0% and is limited to 22% (income over 320,000 Singapore dollars) for residents and rates from 15% to 22% for non-residents.

Currently, there are various programs for obtaining a residence permit (EntrePass): for entrepreneurs, innovators and investors who are ready to do business in the country.

A prerequisite for obtaining EntrePass is the fact of registration of a private limited company in Singapore, moreover:

• if the company is already registered, then the company must be less than 6 months from the date of registration until the time of the application for EntrePass,
• if the company has not yet been registered, then the company can be established after the applicant gets the result of the consideration of his application.

To obtain EntrePass as an entrepreneur, it is additionally necessary that:

• the company raised at least $ 100,000 from a government investment fund, venture capital, or business angel funds authorized by the Singapore government;
• the company was registered under the auspices of an incubator or accelerator authorized by the Singapore government;
• the applicant had experience in business, mainly entrepreneurial activity in creating “scalable enterprises”, the applicant was ready to create, develop and manage a new or existing business in the country.

To obtain EntrePass as an innovator, it is additionally necessary that:

• the applicant or his company owned intellectual property (IP) registered in an approved national IP institute, which provides a significant competitive advantage for the proposed business and does not allow to freely replicate this business idea;
• the applicant company must constantly cooperate with the research institution of the Agency for Science, Technology and Research (A * STAR), the Institute of Higher Education (IHL);
• the scope of the technical or subject competence of the applicant should be related to his proposed business.

To obtain EntrePass as an investor, it is additionally necessary that:

• the applicant had positive business investment experience, and the applicant was ready to develop a new or existing business in Singapore.

A number of activities do not qualify for EntrePass:

• coffee houses, shopping centers, food courts;
• bars, night clubs, karaoke rooms;
• massage parlors;
• salons of acupuncture, traditional Chinese medicine, herbal medicine;
• employment agencies, etc.

EntrePass owners can “invite” to Singapore their family members (spouse / common-law spouse, as well as unmarried children under the age of 21), provided that the company's business expenses for the year exceed $ 100,000, and the company employs 3 ordinary employees (full time) or 1 manager / senior manager.

A similar opportunity exists for the parents of the owner of EntrePass. For this, expenses should be at least $ 200,000 and 6 ordinary employees or 2 managers / managers are employed in the company.

It should be noted that an extremely favorable climate has been created for startup owners in Singapore. But what are its features - the topic of a separate conversation.

For questions about organizing Startup projects in Singapore, obtaining EntrePass, arranging financing, and optimizing taxation, please contact our specialists.