Singapore has long established itself as one of the world’s best places to do business in, so it’s no surprise that hundreds if not thousands of entrepreneurs around the globe want to set up shop here.
But before you jump right into your company’s registration in Singapore, there are several matters to consider so you can plan more carefully and have a smoother incorporation. Let’s have a look at what these are below.
Why is Singapore Appealing to Foreign Investors?
First, let’s have a better understanding of why it’s a good idea to start a company here — especially if you want to gain a foothold in Southeast Asia:
Strategic Location - Singapore is along one of the world’s busiest shipping routes and provides access to many global markets. It’s ideal for trade and a good starting point for expansions.
Full Foreign Ownership - Compared to the rest of Southeast Asia, Singapore allows for 100% foreign ownership of companies with very minimal requirements.
Friendly Tax Policies - Singapore has the lowest corporate income tax rates in SEA and offers numerous tax benefits for small and large companies alike.
Streamlined Incorporation - Singapore’s company registration process is among the world’s fastest and is completely done online. If you have all your requirements ready, you can incorporate them within a day.
Strong and Transparent Business Laws - Businesses in Singapore enjoy minimal red tape while being well-protected from issues like copyright infringement and data breaches.
English Is An Official Language - Singapore is a multilingual nation, but English is the language used in legislation and business, making communication much easier.
Considerations Before You Incorporate
As attractive as Singapore’s business environment can be, foreigners still have to consider several factors, including:
Get A Work Pass
You must procure a relevant work pass, such as an Employment Pass or EntrePass, to legally run a business in Singapore. If you plan to start a tech firm, you could apply for a Tech.Pass instead — though it does have more stringent salary and experience requirements.
You Can’t Register on Your Own
While Singapore residents can set up businesses all by themselves, a foreigner must incorporate with a registered corporate service as their filing agent. These providers often offer other services such as company secretaries and updating company information with ACRA.
You Need a Local Director
Although you can own all the shares in your company, you still need to appoint a local resident as a director. This can be a Singapore citizen, permanent resident, or another Employment Pass/EntrePass holder. Nominee directors are also allowed if you still want full control of your business.
Have a Registered Address
All companies — including foreign-owned ones — must be registered to a physical address in Singapore, even if all their activities are done online. Fortunately, you can opt for virtual office services which provide a real location for clients.
Consider Partnering With Company Registration Services
Many business consultancies in Singapore offer company registration assistance so foreigners can have more guidance during the whole incorporation process. Our country’s regulations may be straightforward enough, but that doesn’t mean entrepreneurs won’t need help at all. Working with local experts helps ensure that you’re completely compliant.
These service providers can walk you through steps such as:
Procuring the necessary work permits and industry licences
Appointing corporate secretaries to ensure compliance
Tax registration and opening corporate bank accounts
Let Your Venture Succeed in Singapore
Singapore offers many opportunities for foreigners to make a name for themselves here. However, it still takes careful planning and consideration to incorporate your business successfully. So keep the above factors in mind if you want to set up shop in Singapore someday.
And always remember this: Don’t be afraid to reach out to local professionals who are more experienced in our country’s regulatory framework. They can help you take full advantage of your benefits, comply with your requirements, and position your enterprise so it can truly thrive.
