How To Set up a Business in Singapore as a Foreigner

If you a foreign national planning to start a business, Singapore should be at the top of your list. Singapore is known for its seasoned-commercial enterprise environment, strategic place, and transparent legal framework, Singapore is one of the exceptional locations in the international for business start-ups.  In this guide, we’ll provide a step-by-step approach on how to set up a Singapore company as a foreigner, covering essential requirements, compliance, and company incorporation services Singapore offers.

Why is Singapore ideal for Foreign Entrepreneurs to launch their Business?

As one of the world's most business-friendly economies, Singapore provides a stable environment for businesses to thrive. Here are some primary reasons:

• Strategic Location: Singapore’s location at the heart of Asia positions it well for access to major markets, including China, India, and Southeast Asia.
• Supportive Government Policies: With efficient regulatory frameworks and well-established business ecosystems, the government actively encourages foreign investment and entrepreneurship.
• Attractive Tax Incentives: Singapore offers competitive corporate tax rates with various incentives for new businesses, such as reduced rates and exemptions.

Access to Skilled Talent: With a highly skilled and educated workforce, Singapore offers excellent access to professional talent.

Click on the below link to read more about “Why Singapore is the Top Choice for Entrepreneurs to Start a Business”

Overview of Singapore’s Regulatory Body: Accounting and Corporate Regulatory Authority (ACRA)

Overview of Singapore’s Regulatory Body: Accounting and Corporate Regulatory Authority (ACRA)

The Accounting and Corporate Regulatory Authority (ACRA) is the main regulatory body overseeing business registration in Singapore. Every company operating in Singapore must comply with ACRA’s standards, and it is mandatory to register with this body. ACRA is also responsible for enforcing compliance regulations, ensuring that businesses adhere to ethical and operational standards. Foreigners are encouraged to work with professional service providers who offer company incorporation services Singapore to simplify the process.

You can find more details on ACRA’s official website here.

Step-by-Step Guide to Set Up a Singapore Company as a Foreigner

1. Choose a Suitable Types of Companies you can Register in Singapore:

Before registering a business enterprise in Singapore, you need to decide which sort of business entity best suits your wishes. There are numerous options to be had for foreigners:

• Private Limited Company (Pte Ltd): The maximum not unusual and preferred structure for foreign entrepreneurs, imparting limited legal responsibility and tax benefits.
• Sole Proprietorship: Easier to sign up however consists of limitless liability, which means your personal belongings are at chance.
• Partnership: Suitable for organizations with more than one owner. Partnerships can be both well known or confined.
• Branch Office: If you have a longtime commercial enterprise abroad and desire to enlarge into Singapore, setting up a department office is a possible option.
• Representative Office: Ideal for foreign companies that want to discover the Singapore marketplace without conducting income-making activities. It’s a transient setup for market studies or liaison sports.

2. Reserve Your Company Name:

The next step is to reserve a unique company name. ACRA requires that the name must not infringe on any trademarks or contain inappropriate or restricted words. The reservation can be made online via ACRA’s BizFile+ portal for a nominal fee of SGD 15, and once approved, the name will be reserved for 120 days.

3. Appoint a Local Director

Under Singaporean law, every company must appoint at least one resident director, who can be a Singaporean citizen, permanent resident, or someone with an EntrePass or Employment Pass. Foreigners cannot act as the sole director but can own the entire company. Professional company incorporation services Singapore often help foreigners by providing nominee director services to meet this requirement.

4. Prepare the Necessary Documentation

Gathering the required documents is crucial to the incorporation process. To ensure compliance, you’ll need the following:

• Signed Company Constitution: This document outlines the rules governing the operations and management of the company.
• Details of Directors and Shareholders: Information on all company directors and shareholders, including foreign entrepreneurs, is mandatory.
• Registered Address in Singapore: A local, physical address must be provided for official communication.
• Identification Proof for Foreign Entrepreneurs: Typically, copies of passports and proof of residential address.

Many professional service providers handle the documentation for you, making the process easier and more efficient.

5. Engage a Qualified Company Secretary

Singapore law mandates that every company appoints a company secretary within six months of incorporation. The company secretary ensures that the company complies with regulatory requirements and is typically responsible for maintaining statutory records, organizing board meetings, an    d managing ACRA filings. Working with company incorporation services Singapore helps fulfill this requirement seamlessly.

6. Register Your Business with ACRA

Once all documents are prepared, you can proceed to register the business with ACRA. Upon approval, ACRA issues a business registration certificate Singapore, which serves as proof of the company’s legal existence. This document will also be essential when setting up a corporate bank account or engaging in contractual agreements.

Post-Incorporation Essentials Key Requirements

1. Open a Corporate Bank Account

Having a corporate bank account is a necessity for business transactions in Singapore. Most local banks have strict requirements for foreign-owned companies, and they usually require the company’s official registration certificate and the identification of company directors and shareholders.

• Certified copies of the business enterprise incorporation certificate
• Company’s constitution (additionally referred to as Articles of Association)
• Resolution from the board of directors approving the account beginning
• Proof of identification and cope with for the business enterprise’s administrators and licensed signatories
• Bank reference letters (depending at the bank)

Top banks in Singapore for enterprise accounts consist of DBS, OCBC, and UOB, which give offerings tailor-made to SMEs and begin-ups.

2. Comply with Annual Filing Requirements

Singapore mandates all companies to file annual returns and financial statements. Businesses are also required to hold an Annual General Meeting (AGM) to present the financial health of the company to shareholders. A company secretary often assists with these requirements, ensuring timely compliance with ACRA regulations.

1. Annual General Meeting (AGM): Every company needs to preserve an AGM where the monetary statements are supplied to shareholders.
2. Annual Return Filing: Companies must file an annual return with ACRA within one month after the AGM
3. Financial Statements: Prepare and put up audited or unaudited financial statements (relying on the company size and revenue).
4. Corporate Tax Filing: Singapore’s corporate company tax fee is 17%, but there are numerous tax incentives and exemptions available to start-ups.

3.  Apply for Work Passes

For foreigners planning to move to Singapore to manage their business, work passes like the Employment Pass or EntrePass are required. These passes allow entrepreneurs to legally work and reside in Singapore, which is essential for hands-on involvement in business operations.

• EntrePass: Specifically designed for foreign entrepreneurs who need to start a brand new business in Singapore. It’s aimed toward revolutionary companies or those with tremendous ability.
• Employment Pass (EP): If you desire to incorporate a company and work as the director, an Employment Pass is your pleasant choice. The EP requires a minimum earnings of SGD 4,500 per month, though this will vary depending on your position and industry.
• Dependant’s Pass (DP): If you maintain an EP or EntrePass, you can follow for a DP on your instant family members, permitting them to stay with you in Singapore.

For precise eligibility and visa utility processes, you may check the Ministry of Manpower (MOM) website.

Advantages of Professional Company Incorporation Services Singapore

Foreign entrepreneurs often choose company incorporation services in Singapore to simplify the incorporation process and ensure compliance with local laws. These services provide:

• Assistance with Documentation: From drafting the company constitution to submitting necessary documents to ACRA.
• Nominee Director Services: A way to meet the local director requirement for foreign-owned companies.
• Registered Office Address: Some service providers offer a registered address, meeting the statutory requirement without needing a physical office.
• End-to-End Support: From application assistance to ongoing compliance support, they make the process seamless.

Cost Breakdown of Setting Up a Singapore Business

Here's an estimated cost structure for business incorporation in Singapore:

Final Thoughts on Setting Up a Business in Singapore

Setting up a business as a foreigner in Singapore is a well-defined process that can be easily managed with the right preparation and assistance. By meeting ACRA's requirements and working with professional company incorporation services Singapore, entrepreneurs can navigate the setup and post-incorporation processes smoothly. With a vibrant economy, favorable tax policies, and a supportive regulatory environment, Singapore remains an attractive destination for international entrepreneurs.

Reach out to Velarys for professional steering on every element of business registration in Singapore and enjoy a hassle-loose enterprise launch!

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