How Can Foreigners Register a Company in Singapore?
Singapore is one of the best countries to start a brand-new business or expand an organization due to the effective IP protection, tax incentives, business-friendly regulations, and a rapidly-growing ecosystem.
Due to the various incentives available in Singapore, there is no doubt that many foreigners want to register their companies in Singapore to benefit from the business-friendly environment.
This article explains all the fundamental requirements you must meet to complete the Singapore company registration process and start your business.
Singapore Company Registration for Foreigners
Like a local resident of Singapore, a foreigner also has the right to own 100% shareholding of the company after registering it.
According to Singapore law, anyone above the age of 18 years can register a company. However, the person must not have been involved in any serious legal offense or has a history of bankruptcy.
Requirements for Foreigners to Register a Company in Singapore
The very first step that foreigners should take while registering a company in Singapore is hiring a local or resident director. This process becomes much easier with the help of an audit firm in Singapore.
The company’s shareholders will have to pass a resolution to confirm the appointment of a local director who should be over the age of 18 years and have full legal capacity.
In other words, it is compulsory for foreigners to appoint a local director for their company in Singapore.
Moreover, they must deal with the local agents like an audit firm in Singapore to complete the Singapore company registration process. Foreigners have the following three options while appointing a local director:
- Hire a permanent resident of Singapore or someone who has the EntrePass.
- Appoint a nominee director.
- Complete the registration process first and then apply for EntrePass.
Foreign entrepreneurs can apply for EntrePass before the company incorporation or within six months of company registration with ACRA. If you choose to apply for EntrePass from the Ministry of Manpower (MOM), you will need the following documents:
- Copy of your international passport.
- Past employment records and testimonials, if available.
- Profile of your business.
- A business plan in English that contains information about the products and services being offered to the customers, market analysis, operation plan, and details of the organization’s management team.
Cost of Singapore Company Registration
There are two major fees involved in the company registration fee. First, you will have to pay S$15 to ACRA for the company name registration. Secondly, the cost of the rest of the company registration process is S$300.
Once the registration process is completed, ACRA will send an incorporation email that includes a soft copy of the Notice of Incorporation. You can get the certificate of incorporation by paying a certain fee.
Types of Business Entities
It is also important to understand the various types of business entities in Singapore so you can choose a suitable type of company to establish.
A private limited company is the most common type of business entity because it provides significant flexibility and is considered a separate legal entity.
In order to complete the Singapore company registration process, you have to meet the following requirements:
- Hire a corporate secretary because it is mandatory for every company in Singapore to have a company secretary.
- The new company must have at least one shareholder who can be a natural person or a corporate entity.
- Hire at least one local director, the local director can be a Singapore citizen or a permanent resident.
- The company should have an initial paid-up capital of at least S$1.
- It is important to have a physical registered office address to provide during the registration process.
If the foreigner is not living in Singapore, it can be challenging to meet these requirements and consider all of the legal obligations.
In such situations, it is better to rely on professional audit firms in Singapore that provide reliable company registration services and fulfillment of legal obligations like hiring a corporate secretary.
All in All
If you follow these tips and guidelines, you can easily go through the Singapore company registration procedure, even if you are a foreigner who does not live in Singapore.
Using the professional services of an audit firm in Singapore and having an experienced corporate secretary makes company registration even easier and quicker because they can easily comply with the laws of ACRA, IRAS, and MOM in Singapore.