Have you ever wondered why Singapore stands out as the ideal destination for foreign entrepreneurs? The answer lies in its strategic location, business-friendly environment and strong legal framework. Known for its open economy, low corporate tax rates and strong intellectual property protections, Singapore is a beacon for global business ventures. Coupled with political stability, a skilled workforce and top-notch infrastructure, the city-state offers a fertile ground for entrepreneurial success. So why wait? Dive into the vibrant business landscape of Singapore today.
Foreign entrepreneurs have much to celebrate when considering Singapore for their next business venture. Did you know that foreigners can enjoy full ownership of their company in Singapore, with no restrictions on the percentage of foreign ownership? Additionally, they are free to select any business activity that complies with local laws, ensuring they choose the appropriate SSIC code to classify their activities accurately. Surprisingly, while the minimum paid-up capital is just S$1, this amount can be increased to suit business needs. Foreigners are also privileged to propose and reserve a company name, provided it complies with the Accounting and Corporate Regulatory Authority’s (ACRA) naming guidelines.
However, navigating the company registration process involves some specific requirements. Do you know why engaging a Registered Filing Agent (RFA) is essential? Foreign entrepreneurs cannot self-register a company and must rely on these agents to handle transactions with ACRA. Necessary documentation, including passports, proof of overseas residential addresses and Know-Your-Client (KYC) information, must be provided through an RFA.
There’s more to consider. Did you know your company must have at least one local director who is a Singapore Citizen, Permanent Resident (PR), or holds an Employment Pass (EP) or EntrePass? A physical address in Singapore is also mandatory, as P.O. Boxes are not acceptable. Compliance with KYC procedures is essential, along with appointing a company secretary within six months of incorporation and adhering to ACRA regulations. Furthermore, the company name must not be vulgar, obscene or violate existing trademarks and copyrights.
The incorporation process is straightforward but precise. It begins with appointing a company structure, followed by obtaining name approval from ACRA. Typically quick, this step may take longer if the name involves regulated activities. Once approved, the incorporation application must include the company name, business activities, shareholders’ and directors’ details and KYC information.
As for the local director, foreigners have several options to meet the local director requirements. Did you know many corporate service providers in Singapore offer nominee director services? These involve appointing a local resident director for compliance purposes. For those planning to actively manage their business, applying for an EP or EntrePass allows them to reside in Singapore and act as the local resident director. Collaborating with a local Singaporean or PR, or utilizing the Letter of Consent (LOC) for spouses of EP holders, can also fulfill this requirement.
Can foreigners register their company online? Absolutely. Through ACRA’s BizFile+ portal, foreigners can register their company, but this must be done via a licensed agent. Engaging with an RFA ensures the registration process is smooth and compliant with Singapore’s regulations.
Opening a corporate bank account is a crucial step following registration. The advantage of Singapore is an abundance of banking options, including many new online banks, regulated by Singapore’s Monetary Authority. The compliance requirements are still much easier than in most of the other countries. Opening an online bank account can be done within just a few hours. Traditional banks may take up to a few weeks to review the application.
The cost of registering a company in Singapore is comparable for both foreigners and locals. Government fees include S$15 for name reservation and S$300 for registration. A full company set-up with services like company secretary, registered business address and local nominee director via an RFA incurs additional costs, typically ranging from S$2,500 to S$4,000. Annual maintenance costs, including office rental, utilities and employee salaries, generally range from S$3,000 to S$5,000.
Visa requirements for foreigners actively managing their business include obtaining an appropriate visa, such as an EntrePass or EP. Non-resident directors attending only board meetings may not need a visa.
Foreign entrepreneurs have several pathways to permanent residency, including the EntrePass, EP or the Global Investor Program (GIP). Embarking on the journey of company registration in Singapore is a promising venture. With the right guidance and compliance with regulations, entrepreneurs can establish a thriving business in one of Asia’s most dynamic economic hubs. Take the plunge today and turn your entrepreneurial dreams into reality in Singapore!
Want to learn more? Visit https://intracorp.com.sg/
