The interest in opening trading companies in Singapore had led to the development of free zones which offer numerous advantages to businesses established here. Free zone companies, as they are usually called, are companies located in special economic areas which benefit from transportation and storage facilities which is very important when dealing with significant amounts of merchandise.
However, there are several requirements a company must comply with in order to be considered a free zone company and this is why our Singapore company formation specialists receive a lot of questions on this type of entities. Below they have answered to the most frequently asked questions on free zones and free zone companies in Singapore.
Yes, there is. Actually, Singapore has enabled the Free Trade Zones Act in 1966 and ever since the city-state has continuously amended the law in order to provide for an advantageous environment for free zone companies.
At the moment, Singapore has nine free zones, each of them dedicated to a certain trading sector. Our company registration consultants in Singapore can offer information on the city-state’s free zones.
Just like any other type of Singapore company, a free zone company is a business entity registered in the city-state which carries out is operation in one of the free zones here. The status of free zone company is granted by the authority of the free zone authority the company activates in.
The registration of a free zone company is the same as for any other company in Singapore and must be completed with the Accounting and Corporate Regulatory Authority followed by obtaining the operating license from the free zone authority. Our local agents can assist foreign investors who want to open a free zone company in Singapore.
The special license is issued by the authority the Singapore free zone company will operate in. Apart from this license, a free zone company must also comply with certain requirements imposed by the Singapore Customs Authorities, such as obtaining import and export licenses.
Yes, depending on the activity it will carry out, a Singapore free zone company must have at least 100,000 SGD if it needs a warehouse or 50,000 SGD if it requires an office. However, the full amount must be paid in full within the first year of activity.
Free zone companies are subject to the corporate tax as any other company in Singapore. Even so, Singapore has one of the most advantageous tax systems in the world. Our company formation agents in Singapore can offer information on the taxes free zone companies must pay.
The main advantages of Singapore free zone companies are the exemptions from the customs duties and the Goods and Services Tax. Also, foreign investors benefit from the same facilities as local ones when establishing a free zone company in Singapore. Our Singapore company formation representatives can offer more information on all the advantages available in the city-state’s free zones.
Yes, like for any other type of company, foreign enterprisers must appoint a local agent or company to carry out the company registration procedure in Singapore.
The large number of free zones which are tailored to the companies’ needs and requirements, as well as the modern storage and transportation facilities, including one of the best infrastructures in the world are just a few of the reasons one should take into account when opening a free zone company in Singapore.
So, if you have decided to open a Singapore company in any of the city-state’s free zones, please feel free to contact us.