FAQS ON REGISTER YOUR BUSINESS IN US AND SINGAPORE

• What are the options available to us for registering my start-up US?

  The most common business structures available at your perusal are:

  • C Corporation
  • S Corporation
  • Professional Corporation
  • Non Profit Corporation
  • Limited Liability Company (LLC)

• What is an ‘S-Corporation’?

  An S corporation (sometimes referred to as an S Corp) is a special type of corporation, created through an IRS tax election. An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation.

• What is a "C Corporation"?

  A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately.

• How to start a "C Corporation"?

  A C Corp takes some time and efforts in order to start the business.Articles of incorporation must be drawn up and filed with the Secretary of State, along with the necessary fees. Bylaws have to be written and must follow certain guidelines. Officers have to be named and a board of directors has to be elected. These requirements are meant to keep ownership of the corporation separate from the corporation itself.

• What would be the liability of the officers of a C-Corp?

  The liability of the officers of a C-Corp are same as that of a private limited company in India,i.e.limited liability. This means that the personal property of the officers cannot be attached to satisfy the claims of the third parties.

• What are the advantages of filing an S Corp?

  In an S Corp, a shareholder or owner reports corporate income on his/her personal income tax returns. ITo Qualify for S-Corp Status, a Corporation:

  • Must be filed as a U.S. corporation
  • Can maintain only one class of stock
  • Is limited to 100 shareholders or less
  • Shareholders must individuals, estates or certain qualified trusts
  • Requires EACH shareholder consent in writing to the S Corporation election
  • Requires each shareholder have a US Social Security Number
  • Requires each shareholder to be a US Citizen or permanent resident alien with a valid United States Social Security Number
  • Must have a tax year ending on December 31

• What is a Limited Liability Corporation (LLC)?

  LLC is somewhat similar to the Limited Liability Partnership (LLP) of India. A limited liability company (LLC) is a hybrid of a partnership and a corporation. The main benefit is, as the name suggests, limiting liability of the owners. The other advantage is that profits are taxed as personal income, and this is usually lower than what corporations pay.

• What is the taxation structure for LLC?

  There is no corporate tax burden on LLC.Profits flow through to the owners and are taxed at the personal income tax rate. The LLC does file a yearly form with the IRS, but it is for informational purposes only. It is used by the IRS to determine if the owners are paying the correct amount of personal income tax.

• What are the points you need to know before registering your business in Singapore?

  First and foremost, you need to know that you would be considered as a foreign national there. Moreover, Singapore law does not allow foreign individuals or entities to self-register a company. Hence,either you would have to appoint a professional firm over there for this purpose or you would have to engage an Indian expert firm who would get this done through tie ups. Considering the hassle and complexities of legal provisions, it is always advisable to opt for the second option.This would not only help you from the control perspective but would also help in understanding the processes better.

  Taxmantra is tied up with a number of expert and budget firms for this purpose and has been helping start-ups to get the best possible solution to their requirements at affordable prices.

• Do I have to get a Singapore visa if I have to start a company there?

  • Special Singapore visa is not required if you merely want to incorporate a private limited company do not plan to relocate to Singapore. You are free to operate your company from overseas.You are also free to visit Singapore on Visitor’s Visa for short-term basis. However,you would have to appoint a local resident director since each company must have at least one local director.
  • Taxmantra would also help you in availing the services for a local nominee director as well,if you have the said requirement.Write to us for more details.

• What if I wish to relocate to Singapore?

  You would be required to obtain an Employment Pass or Entrepreneur Pass if you plan to relocate to Singapore to operate your company.Once you have obtained your work permit, you can act as the local resident director of your company.

• What is an Entrepreneur Pass?

  The Entrepreneur Pass or EntrePass scheme has been designed for foreign entrepreneurs who wish to start a business and relocate to Singapore.An application for EntrePass can be made before incorporating the Singapore company. Once the pass is approved, you will generally be given 30 days to incorporate the proposed company.This Pass holders are eligible to apply for permanent residence in Singapore in due course of time.

• What is Employment Pass?

  Employment Pass (EP) is a type of work visa issued to foreign professional employees, managers, and owners/directors of Singapore companies.The current salary threshold for the Employment Pass is S$3,300 a month.

• What are the documents that would be required for incorporation purposes?

  Generally, the following documents are required for this:

  • Copy of Passport
  • Copy of Residential Proof
  • Business Profile
  • Proposed Business Plan
  • Copy of Certificate of Incorporation,Memorandum and Articles of Association if shareholder is a Body Corporate

• In how many days a company can be incorporated in Singapore?

  A company usually gets incorporated in 2-3 business days.

• What are the rules for name approval of a company in Singapore?

  The rules are somewhat similar to that of MCA naming guidelines, though less stringent.Following few criteria should be kept in mind before applying for the name:

  The name should NOT:

  • be identical or too similar to any existing local company names
  • infringe any trademark rights
  • is not obscene or vulgar
  • is not already reserved

• How much time does it take for name approval?

  Merely few hours.

• For how long is the name valid?

  The name is valid for a period of 60 days from the date of application. However,before the expiry of the said period, the validity can be extended for another 60 days by filing an extension request.