Finding reliable information about “How to start a business in Singapore or Company Registration in Singapore for Foreigners”? It is simple and straightforward to register a company in Singapore as a foreigner. If you have no idea on setting up your company, you may look for a service provider on this.
There are some reasons prompted foreigners to register a company in Singapore, for example:
- Singapore’s Top Financial Hub Status,
- Reliable IP Protection;
- A Vibrant and Growing economy
- A Business-Friendly Regulatory Environment; and
- A Very Favorable Corporate Taxation Framework.
Below, we will run through the few conditions for company registration in Singapore for foreigners.
Conditions of Incorporating a Company in Singapore
The following conditions must be met for the incorporation of Company in Singapore:
- At least one shareholder, who may be an individual or a company.
- At least one local resident director, who must be a Singapore Citizen or Singapore Permanent Resident.
- A physical registered office address in Singapore (PO Boxes are prohibited).
- A minimum paid-up capital of S$1 or its equivalent in any other major international currency.
- Appoint a company secretary who is a resident of Singapore.
A foreign businessperson can establish a company in Singapore by:
- Moving here on a work pass or
- Using a nominee resident director service.
Incorporate a Singapore Company with an Employment Pass (“EP”)
You are eligible for an EP if you met the following: –
- At least $5,000 of fixed monthly salary (Except for sector under financial services is $5,500).
- Offered a job in Singapore.
- Have qualified educational.
- Working in executive or managerial level.
The application of EP must be made by employer or authorised third party instead of the candidate. Additionally, if the employer is based in overseas without a Singapore address as the registered office:
- You can apply on your behalf through a local sponsor which is a company registered in Singapore.
- The application must be submitted by the local sponsor.
EP holder can be the sole shareholder (i.e.100% ownership) of the company but could not be the local director. Hence, they must appoint a local director who is residence in Singapore. However, they can only be appointed as the director if their employment is under this company. Alternatively, they can be appointed as the company director if they get the approval from Ministry of Manpower (“MOM”) and their existing employer.
Incorporate a Singapore company with an EntrePass
In Singapore, a foreign businessperson can apply an Entrepreneur Pass (EntrePass) with MOM if they wish to conduct business and establish a firm.
Businessperson from all nationalities or citizenships who fulfil the following requirements are eligible to apply for an EntrePass for the incorporation of company in Singapore:
- Owned or intend to register a private limited company with Accounting and Corporate Regulatory Authority (“ACRA”). If the company has registered, you will have 6 months to apply the pass. However, you may apply first before register a company.
- As an entrepreneur, inventor, or investor, you must satisfy any of the following innovative requirements:
Entrepreneur
- Your business has raised at least $100,000 from a venture capitalist (VC), business angel, or a government investment vehicle that recognised by a Singaporean Government agency.
- Your business is currently being incubated at one of the accelerators or incubators that is recognised by Singapore Government.
- Has business experience and record for entrepreneurial with meeting all the following: –
- Sold a tech company
- Raised significant fund for current or past venture
- Being or have been incubated
- Know well on how to grow your proposed business in Singapore
Innovator
Holds an Intellectual property (IP) by you or your business with meeting the following: –
- Registered under and authorized national IP organization
- Bring out benefits to your business
- The company itself or its shareholder must be the IP’s owner
A research institution under the Agency for Science, Technology and Research (A*STAR), an Institute of Higher Learning (IHL) in Singapore has collaborated with your business. The following requirement must be fulfilled:
- It must be related to your business
- Get the verify details from the contact person
- Must involve
- Contract of services is not considered
- Has achievements in the area relating to your business
Investor
Having a good tracking of investments in the businesses and willing to expand them. The only requirement is willing to invest and can provide documents to proof that you have any one of the following:
- A strong track record of investing in highly scalable businesses.
- Periodic plans to invest in other local tech startups
- A senior role in a big firm with at least 8years of experience that able to scale up local innovative or tech startups.
However, An EntrePass Holder is not Eligible for the Following Businesses:
- Coffee shops, hawker centres, food courts.
- Bars, night clubs, karaoke lounges.
- Foot reflexology, massage parlours.
- Acupuncture, traditional Chinese medicine, herbal dispensing businesses.
- Employment agencies.
- Geomancy business.
Incorporate a Singapore Company with a Nominee Director.
Another option for a foreigner to register a company in Singapore is engage a nominee director. Nominee director is a Singapore local resident (i.e. Singapore Citizen, Singapore Permanent Resident, EntrePass Holder) who is not a disqualified person that will be acting on the behalf of the company’s owner.
Even is a nominee director, he/she is required to perform their roles and responsibilities in the company. In the event if they are failed to meet any of the compliance, they will also be liable due to the negligence.
If you could not find a local person to act as the local director, you may seek for a service provider.