How Can a Foreigner Start a Business in Singapore?

Well, Singapore business incorporation is an easy task for foreigners to complete. As per the Company Law of Singapore, get to own 100% of its shares without taking any official permission.

Singapore Business Formation

If you are over the age of 18 years, you can go for Singapore business formation anytime. Of course, you cannot have a history of conviction for a legal offence or bankruptcy. For the task, you must employ a registered filing agent. It could be a law firm, accounting firm or corporate secretarial firm. Foreigners cannot form a Singapore company on their own.

Benefits of Choosing a Private Limited Company to Register Your Business

Most of the business owners choose to form a private limited company. It is a dynamic business structure that allows you to limit your liability towards business debts and losses. You are only responsible for the amount you have invested in its shares. Moreover, your assets are not at risk.

You need 1-50 shareholders to register a private limited company. By doing so, you incorporate a separate legal entity that has the rights of a natural born person. It exists perpetually unless dismantled. It is liable for its debts and losses. It pays corporate tax (0%-17%) on its income.

You can also register a Sole proprietorship or a Limited Liability Partnership (LLP). However, you have to understand the implications of your choice before going ahead fully. It can have an adverse effect on your liability and business' taxation and compliance.

The proprietor and partners in an LLP have to deal with unlimited liability. They are responsible for the business' debts which put their assets at risk. Their income from their business is taken to be their personal income. They have to pay personal income tax (0%-22%).

ACRA's Fees for Singapore Business Formation

ACRA charges S$15 for company name registration and S$300 for company incorporation. In all, ACRA's official fees for a new Singapore business incorporation comes to S$315.

Reserving the company name gets you a period of 60 days to set up your company. We can pay additional fees to get it extended by another 60 days.

Key Requirements for Singapore Business Incorporation

• Minimum initial paid-up capital of S$1

• At least 1 shareholder

• At least 1 local/resident director

• At least 1 company secretary

• Registered local address for the company office

Director

You can choose a Singaporean or Permanent Resident holder to act as a local or foreign director. If you are an EntrePass holder, you can also act as one. The pass allows you to relocate to Singapore.

Company Secretary

As per the law, you need to hire a qualified secretary within the 6 months of your Singapore business formation. An ordinarily resident of Singapore who is knowledgeable about the Company Law will do.

Singapore Business Incorporation Process

There are 2 steps to Singapore business formation.

• You need to take the approval of ACRA for the name of your company

• Apply and submit incorporation documents to ACRA

The approval process requires only 1-3 days. If the application gets passed on to higher authorities, it may require up to 2 months.

Incorporation Documents

You need to submit documents presented in the following list:

• Company name approved by ACRA

• Brief info on business activities

• Registered physical office address

• Particulars of shareholders/directors/company secretary

• Foreign Individuals- A copy of passport and residential address proof (overseas)

If your application for Singapore business incorporation gets official node, ACRA emails you. You can use the email as the Certificate of Incorporation. It has all details of your company like UEN, business profile, etc. We also assist you in opening a corporate bank account in a Singapore bank.