How to Register a Business in the US from Singapore

Step 1: Benefits of starting your US business from Singapore

Starting a US business from Singapore offers a plethora of benefits that can significantly enhance your entrepreneurial journey. One of the primary advantages is leveraging Singapore's strategic geographic location and its connectivity to major global markets. Singapore is renowned for its robust infrastructure, transparent regulatory environment, and efficient processes, making it an ideal launchpad for reaching international clientele, including the lucrative US market. Additionally, the Singapore-US Free Trade Agreement (FTA) facilitates smoother trade transactions, offering reduced tariffs and improved market access for goods and services.

Moreover, Singapore provides a business-friendly ecosystem with numerous incentives for foreign entrepreneurs. The nation’s strong intellectual property protection laws ensure your innovations and business practices remain secure, while its attractive tax regime enables greater financial efficiency. Establishing a US-based venture from Singapore allows you to enjoy the benefits of both economies. By incorporating in Singapore, you can tap into the country's world-class banking system, advanced technological infrastructure, and skilled workforce, all while building a presence in the diverse and expansive US market. This dual advantage ensures a competitive edge and a sustainable growth trajectory for your business endeavors.

Step 2: How to start your US business from Singapore

Starting a US business from Singapore involves several key steps. First, you need to choose the type of business entity you want to form, such as a Limited Liability Company (LLC) or a corporation. Each type has its own set of requirements and benefits. It’s crucial to conduct thorough research or even seek professional advice to determine the best structure for your business. Once you’ve decided on the entity type, you will need to register your business with the relevant US state. This typically involves filing formation documents with the Secretary of State’s office in the state where you plan to conduct business.

Additionally, you will need to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which is essential for tax purposes and opening a US bank account. Depending on the nature of your business, you might also need to obtain specific licenses and permits. Consider enlisting the services of a registered agent to handle legal documents and correspondence on behalf of your business in the US. Lastly, it's important to remain compliant with US tax laws and regulations, which may require engaging a US-based accountant or tax advisor to assist with ongoing financial obligations

Step 3: Opening a Business Bank Account

A business bank account is a separate account that is used exclusively for business transactions. But why is it important to open a business bank account?

Keeping your personal and business finances separate is crucial. A dedicated business bank account allows you to do just that, making it much easier to track your business’s income and expenses. This clear separation translates to simpler tax reporting come tax season.

But the benefits go beyond bookkeeping. Having a separate account can provide legal protection. It establishes your business as a distinct entity from yourself. In the unfortunate event of a lawsuit or bankruptcy, this separation can help shield your personal assets from business liabilities.

Furthermore, a business bank account can boost your credibility and project professionalism.

It demonstrates to clients and vendors that you take your business seriously and are committed to maintaining accurate financial records. This can be especially important in establishing trust with potential partners.

Finally, a business bank account is essential for accepting payments, even if you utilize a merchant account. Whether you use doola or another service, funneling those customer funds into a dedicated business account is necessary.

doola partners with banks that allow you to open a bank account remotely from anywhere in the world, like Mercury. Shop around and compare different banks’ fees and services.

Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection.

You may also want to consider working with a bank that specializes in small business banking.

Step 4: Understanding Your Compliance Requirements in Singapore

Understanding Compliance Requirements for Running a US Business in Singapore

Establishing a US business in Singapore can be a strategic move, given the city-state's robust economy and business-friendly regulations. However, there are several compliance requirements that need to be adhered to for smooth operations. Below are key considerations:

1. Business Registration

In Singapore, all businesses must be registered with the Accounting and Corporate Regulatory Authority (ACRA). This includes:

• Registering the business name
• Determining the business structure (e.g., sole proprietorship, partnership, corporation)
• Filing necessary documentation and paying registration fees

2. Employment Regulations

Compliance with employment laws is essential for US businesses operating in Singapore. Key considerations include:

• Adhering to the Employment Act and its provisions on working hours, wages, and leave entitlements
• Securing Employment Passes for foreign employees
• Implementing fair employment practices and non-discrimination policies

3. Taxation

Singapore offers a favorable tax environment, but businesses must still comply with various tax requirements:

• Registering for Goods and Services Tax (GST) if annual turnover exceeds SGD 1 million
• Filing corporate tax returns annually and complying with transfer pricing regulations
• Understanding bilateral tax treaties to avoid double taxation between the US and Singapore

4. Data Protection

Ensuring compliance with data protection laws is crucial, particularly under the Personal Data Protection Act (PDPA). Considerations include:

• Implementing policies for the collection, use, and storage of personal data
• Ensuring employee training on data protection practices
• Establishing procedures for data breaches and reporting

5. Intellectual Property

Protecting intellectual property (IP) is another critical consideration. Businesses should:

• Register trademarks, patents, and copyrights with the Intellectual Property Office of Singapore (IPOS)
• Monitor the market for potential IP infringements
• Enforce IP rights through legal avenues if necessary

6. Financial Reporting

Adhering to financial reporting standards is mandatory. Businesses must:

• Maintain accurate financial records
• Appoint an auditor if required under the Companies Act
• File annual financial statements and reports with ACRA

Understanding and adhering to these compliance requirements can help ensure a smooth, successful operation of a US business in Singapore. Seeking advice from local legal and financial experts can also provide valuable guidance.

doola offers a Total Compliance package, including bookkeeping services, to help you stay on top of your compliance requirements. This ensures your business operates smoothly and adheres to all legal and regulatory standards.

Step 5: Understanding Your Tax Obligations in Singapore

Understanding Tax Obligations for US Businesses Operating in Singapore

When running a US business in Singapore, it's crucial to understand the various tax obligations to ensure compliance and optimize your tax strategy. Below are key considerations to help navigate this complex landscape.

Corporate Tax Rate

Singapore offers a competitive corporate tax rate of 17%. However, new start-ups can benefit from tax exemptions, reducing the effective tax rate significantly.

Goods and Services Tax (GST)

If your business turnover exceeds SGD 1 million, you are required to register for GST. This tax is currently set at 7%, but businesses can claim input tax credits on goods and services purchased for business use.

Double Taxation Agreement (DTA)

Singapore and the US have a double taxation agreement to help avoid being taxed on the same income in both countries. This agreement includes mechanisms for tax relief and credits.

Personal Income Tax

If you have employees stationed in Singapore, their personal income tax rates will apply, which are progressive and range from 0% to 22% based on income brackets.

Withholding Tax

Singapore imposes withholding tax on certain payments to non-residents, such as royalties, interest, and service fees. The rates can vary, but they are typically lower due to tax treaties.

Tax Filing Requirements

• Annual Tax Filing: The annual tax return must be filed by November 30 for paper filing and December 15 for e-filing.
• Estimated Chargeable Income (ECI): Must be filed within three months of the financial year-end.
• GST Filing: Usually done on a quarterly basis, ensuring timely payments.

Transfer Pricing Regulations

Singapore follows OECD guidelines on transfer pricing. Documentation must be maintained to ensure that transactions with related parties are conducted at arm's length.

Economic Development Board (EDB) Incentives

Consider exploring various incentives provided by the Singapore Economic Development Board (EDB), such as tax holidays and grants, to support business growth and innovation.

Understanding these tax obligations helps ensure that your US business remains compliant while maximizing potential benefits. Professional advice can further tailor these considerations to your specific business needs.

It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you’re not missing anything.

doola's Total Compliance package can handle your tax filings for you, ensuring you remain compliant with federal, state, and local tax requirements.

Step 6: How doola Can Assist

doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.

Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed. 

doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.

doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.

The doola Application

It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.

Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.

Forming the Company

doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent. 

You can also opt for our Total Compliance plan.

Getting Your IRS Tax ID (EIN)

After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing. 

For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.

Filing Your 83(b) Tax Election

Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.

We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.

Partner Perks and Discounts

doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.

doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.

Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.

Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.

Turn your entrepreneurship dream into reality today!

We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your country