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How to Register a Company in Singapore for Foreigners

by Andy
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Singapore, widely recognized as a financial hub, is a prime destination for entrepreneurs and multinational corporations aiming to establish a business abroad. The country is particularly appealing due to its favorable tax system, vibrant start-up ecosystem, policy allowing 100% foreign ownership, stable political climate, and sophisticated banking services.

Registering a company in Singapore is a simple and cost-effective process, though it does require some financial planning. This article provides a step-by-step guide for foreigners on how to successfully register a company in Singapore.

Cost of Registering a Company in Singapore
The entire company registration process in Singapore is conducted online through the Bizfile+ portal, managed by the Accounting & Corporate Regulatory Authority (ACRA), the official company registrar. The associated fees include:

  • Company name application fee: S$15
  • Registration fee: S$300

To access the portal, a SingPass ID is required. Foreigners wishing to incorporate a company independently will need this ID but must engage a corporate secretarial firm to handle the process on their behalf.

Most corporate secretarial firms in Singapore offer company incorporation packages ranging from S$500 to S$1,500, depending on the services provided. Additional charges may apply for more complex services.

Can a Foreigner Set Up a Company in Singapore?

If you’re asking whether a foreigner can establish a company in Singapore, the answer is a definite yes!

Starting a company in Singapore is straightforward and can be done entirely online. Foreigners, just like Singaporean citizens, can easily register a company in Singapore and fully own its shares. Anyone aged 18 or older can set up a company in Singapore, provided they have no criminal convictions or bankruptcy issues.

Foreigners have two primary options for registering a company in Singapore:

  • Relocate to Singapore and apply for company registration using an Employment Pass, EntrePass, or Work Permit.
  • Stay overseas and appoint a local or resident director to manage the company.

Requirements to Register a Company in Singapore

Choosing the right business structure is key to successful business registration in Singapore, as it impacts your company’s taxation. Foreign entrepreneurs can register the following types of business entities in Singapore:

  • Private Limited Company (Pte Ltd)
  • Limited Liability Partnership (LLP)
  • Sole Proprietorship

A Private Limited Company (Pte Ltd) is a flexible and popular choice because it is viewed as credible by financial institutions and operates as a separate legal entity.

The basic requirements for setting up a company in Singapore include:

  • At least one shareholder, who can be either an individual or a corporate entity.
  • At least one resident director, who must be a Singapore citizen, permanent resident, or Employment Pass holder.
  • A company secretary.
  • A minimum of S$1 in paid-up capital.
  • A physical registered office address in Singapore.

Work Passes that Allow Foreigners to Start a Business in Singapore

  • Employment Pass (EP):
    If you plan to move to Singapore, you can register a company using an Employment Pass. To qualify, you must earn a minimum monthly salary of S$5,000. For those in their 40s, the required salary is double that amount. You also need recognized qualifications from reputable universities. EP holders can own shares in a company but cannot serve as the local or resident director, necessitating the hiring of a nominee director. Note that EP holders cannot register an LLP or sole proprietorship.
  • EntrePass:
    Designed for foreign entrepreneurs, the EntrePass allows you to register a new private limited company in Singapore. You can apply for this pass either before or within six months of incorporating a company. With the EntrePass, you can also act as the local or resident director.
  • ONE Pass:
    The Overseas Networks and Expertise (ONE) Pass is a new work visa that offers benefits such as the ability to register and run a company in Singapore. To be eligible, applicants must earn a fixed salary of at least S$30,000 per month or its equivalent in foreign currency.

How Long Will It Take to Register a Company in Singapore?

Once all required documents are ready and submitted, the Accounting & Corporate Regulatory Authority (ACRA) typically takes 1 to 3 days to register a company. However, if your application is referred to the Minister, approval could take up to two months. The overall timeline depends on how quickly you, the directors, and shareholders submit the necessary paperwork for verification.

Best Practices After Successfully Registering a Company in Singapore

After successfully incorporating your company, the next important step is to open a corporate bank account. This helps keep your business finances separate from your personal ones, making it easier to manage and track your business transactions. You can open a corporate account online with a traditional bank or a fintech company in Singapore.

The Bottom Line

Foreigners can easily register a company in Singapore through a fully digital process. As a foreign entrepreneur, you need to get ACRA approval for the company name and submit the required documents. ACRA typically approves applications within one to three days.

 

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