Ever wonder how to set up a company in Singapore as a foreigner? Singapore has become a top choice for entrepreneurs worldwide due to its business-friendly environment. The city-state offers a stable political environment, low tax rates, and easy access to Asian markets. These factors make it an ideal place to start and grow a company.
Setting up a business in Singapore as a foreigner is simpler than you might think. You can register a business entity in just 15 minutes through Singapore's online system. But before you do, there are some key steps and requirements to keep in mind.
These include choosing a favored business structure, appointing a local or resident director, and getting the right visas.
To get started, you'll need to decide on your company type, pick a name, and gather the needed documents.
Then you can move on to the company registration process and set up your business bank account.
With careful planning and the right support, including services from a registered filing agent, your Singapore company can be operational in no time.
Key Takeaways
Singapore offers a straightforward process for foreigners to set up businesses
You need to appoint a local director and choose the right business structure
The online registration system allows for quick Singapore company registration
Singapore offers a stable, pro-business environment with strong legal protections and unique cultural elements. Its strategic location and policies attract many foreign entrepreneurs and Singapore companies.
Singapore's legal system is based on English common law. It provides strong protection for intellectual property rights and enforces contracts efficiently.
The country has strict anti-corruption laws, which contributes to a transparent business environment that foreign investors appreciate.
Key regulatory bodies include:
Accounting and Corporate Regulatory Authority (ACRA)
Monetary Authority of Singapore (MAS)
Inland Revenue Authority of Singapore (IRAS)
These agencies oversee company registration, financial regulations, and taxation respectively. Singapore company law also mandates that businesses adhere to these regulations.
Singapore is a multicultural society with influences from Chinese, Malay, Indian, and Western cultures. This diversity is reflected in business practices.
English is widely used in business settings. However, knowledge of Mandarin can be beneficial in certain industries.
Business etiquette in Singapore values punctuality, respect for hierarchy, and indirect communication.
Punctuality
Respect for hierarchy
Indirect communication
Gift-giving is common in business relationships, but be aware of anti-corruption laws when offering gifts.
Networking is crucial. Many business deals are made through personal connections and introductions.
A Private Limited Company is the most popular choice for foreign entrepreneurs in Singapore. It's a separate legal entity from its owners, providing personal asset protection.
Key features:
Limited liability for shareholders
Can have 1-50 shareholders
At least one resident director required
Easier to raise capital and get funding
More tax benefits and incentives
To set up a Private Limited Company, you'll need:
A company name
At least one shareholder
A minimum paid-up capital of S$1
A local company secretary
A registered office address in Singapore
This structure offers flexibility and credibility, making it attractive for both small and large businesses.
A Sole Proprietorship is the simplest business structure in Singapore. It's owned and run by one person who has full control over the business.
Pros:
Easy and cheap to set up
Minimal compliance requirements
Full control over business decisions
Cons:
Unlimited personal liability
Difficult to raise capital
Limited tax benefits
As a foreigner, you'll need to appoint a local manager to run the business. This person must be a Singapore citizen, permanent resident, or EntrePass holder.
Sole Proprietorships are best for small, low-risk businesses or those testing the market before committing to a more complex structure.
A Limited Liability Partnership (LLP) combines features of partnerships and companies. It offers liability protection while maintaining the flexibility of a partnership.
Key aspects:
Separate legal entity from partners
Partners have limited liability
Minimum of two partners required
Taxed at partner level, not entity level
To form an LLP, you'll need:
At least two partners (individuals or corporations)
A local manager if all partners are foreigners
A registered office address in Singapore
Limited Liability Partnerships (LLPs) are widely favored by professionals such as lawyers, accountants, and consultants, as they provide personal asset protection while enabling partners to have direct control over business operations.
Setting up a company in Singapore as a foreigner requires meeting specific requirements. These include obtaining the right visa, understanding residency options, and having relevant qualifications.
To start a business in Singapore, you'll need an appropriate visa. The EntrePass is designed for foreign entrepreneurs. To qualify, you must:
Have an innovative business idea
Possess a strong business track record
Show significant funding from investors
Your company must be registered as a Private Limited Company with ACRA within 30 days of EntrePass approval.
The EntrePass is valid for 1-2 years initially. Renewals depend on meeting business milestones and creating local jobs.
You don't need to be a resident to set up a business in Singapore. But residency offers benefits:
Easier banking and financial transactions
Access to more government schemes
Simpler visa processes for family members
Non-residents can still own and run a company. Key requirements:
Appoint a local resident director
Have a registered local address
Use a corporate secretary service
Consider applying for permanent residency through the Global Investor Programme if you plan long-term operations.
While specific qualifications aren't always required, they can boost your eligibility:
Relevant industry experience
Academic credentials in your field
Proven track record of successful ventures
For certain industries, licenses or certifications may be necessary. Examples:
Financial services: Monetary Authority of Singapore approval
Healthcare: Ministry of Health licensing
Education: Ministry of Education registration
Check with relevant authorities about the qualifications needed for your specific business type. Professional memberships in Singapore-based associations can also enhance your credibility.
Setting up a company in Singapore as a foreigner requires careful planning. You need to develop a solid business plan, research the market, and plan your finances.
Start by creating a detailed business plan. This document will guide your company's growth and help you secure funding.
Include your company's mission, goals, and strategies.
Your business plan should outline your products or services. Describe your target customers and how you'll reach them.
Include a competitive analysis to show how your business stands out.
Don't forget to add an organizational structure. List key team members and their roles. This shows you have the right people to make your business succeed.
Understanding the Singapore market is crucial. Research your industry, competitors, and potential customers.
Analyze market trends and consumer behavior. This helps you spot opportunities and risks.
Look into local regulations that might affect your business.
Consider cultural factors that could impact your success. Singapore's diverse population means you might need to tailor your approach.
Use surveys or focus groups to test your ideas. This feedback can help you refine your products or services before launch.
Create a detailed financial plan. This should include startup costs, operational expenses, and revenue projections.
List all possible expenses, including rent, salaries, and marketing.
Don't forget about taxes and insurance.
Estimate your income for the first few years. Be realistic and base this on your market research.
Plan how you'll fund your business. Will you use personal savings, loans, or seek investors?
Each option has pros and cons to consider.
Create a cash flow forecast. This helps you see when you might need extra funds and when you can expect profits.
Setting up a company in Singapore as a foreigner involves several key steps.
You'll need to choose a unique company name, prepare the necessary documents, and complete the online application process.
Before you start the registration process, you must pick a unique name for your company. Here's what you need to do:
Check if your desired name is available using ACRA's BizFile+ portal.
Make sure the name isn't too similar to existing businesses.
Avoid offensive or vulgar words.
Your company name should reflect your business activities.
If approved, ACRA will reserve the name for 60 days. You can extend this reservation for another 60 days if needed.
To register your company, you'll need to prepare these documents:
Company constitution
Identification documents for directors and shareholders
Registered address proof
Declaration of compliance
Foreign entrepreneurs must appoint a local director who is a Singapore citizen, permanent resident, or EntrePass holder.
You'll also need a company secretary within 6 months of incorporation.
The registration process is done online through ACRA's BizFile+ portal. Here's what you need to do:
Log in to BizFile+ using your SingPass or CorpPass.
Fill out the online application form with your company details.
Upload all required documents.
Pay the registration fee (S$300) and name reservation fee (S$15).
The process usually takes 15 minutes to 2 hours if all documents are in order.
Once approved, you'll receive your company registration number and can start doing business in Singapore.
Renting a physical office in Singapore can be costly. Prime locations like the Central Business District have high rates.
You'll need to factor in rent, utilities, and maintenance costs.
Cheaper options exist in suburban areas. These may be better for new businesses with tight budgets.
Physical offices offer benefits like meeting spaces and storage. They also provide a professional image for client meetings.
Before signing a lease, check zoning laws. Make sure the space is approved for your type of business.
Consider future growth when choosing an office size. You don't want to outgrow the space too quickly.
Virtual offices are a popular choice for foreign entrepreneurs. They provide a registered address without the high costs of a physical space.
Many virtual office providers offer additional services. These may include mail handling, phone answering, and meeting room access.
Virtual offices are ideal for businesses that don't need constant physical presence.
They work well for online businesses or companies with remote teams.
When choosing a virtual office, look for a reputable provider.
Make sure they offer a legitimate registered address that meets Singapore's legal requirements.
Compare prices and services from different providers. Some offer flexible packages to fit your needs.
Remember, you'll still need to maintain proper records and be reachable at your registered address.
To open a corporate bank account in Singapore, you'll need to choose a bank and prepare the required documents. Most banks in Singapore offer accounts for foreign-owned companies. You'll typically need:
Company registration documents
Passport copies of directors and shareholders
Proof of residential address
Business plan or company profile
Some banks may ask for additional paperwork. It's best to check with your chosen bank for their specific requirements.
You might need to make an initial deposit. The amount varies by bank.
Some allow remote account opening, while others require in-person visits.
As a foreign company in Singapore, you must be aware of your tax obligations.
Singapore's tax system is known for being business-friendly, but you still need to comply with all regulations. Entrepreneurs may need to pay personal income tax depending on their residency status and the nature of their income.
Key tax obligations include:
Corporate Income Tax: Currently at 17% on chargeable income
Goods and Services Tax (GST): 8% as of 2023, applies if your annual turnover exceeds SGD 1 million
Withholding Tax: Applies to certain payments made to non-residents
You'll need to register for taxes with the Inland Revenue Authority of Singapore (IRAS).
Keep accurate financial records and file your taxes on time to avoid penalties.
Consider hiring a local tax advisor to help navigate Singapore's tax system and ensure full compliance.
Singapore has a highly-skilled workforce that can meet the needs of most international firms.
Local job websites are popular for finding talent. You can also use recruitment agencies to help with your hiring process.
When hiring locals, you must follow the Employment Act. This law covers basic terms and working conditions for all types of employees.
Key points for employers:
Provide written employment contracts
Pay salaries on time
Offer paid leave and rest days
Contribute to the Central Provident Fund (CPF) for Singaporean employees
If you want to hire foreign talent, you'll need to apply for the right work pass from the Ministry of Manpower (MOM). There are different types of passes:
Employment Pass: For foreign professionals, managers, and executives
S Pass: For mid-level skilled staff
Work Permit: For semi-skilled foreign workers in specific sectors
Each pass has its own eligibility criteria and quota limits.
You must ensure your foreign employees have valid passes before they start work.
Remember to check the latest MOM guidelines, as rules can change.
Staying compliant with work pass regulations is crucial for your business operations in Singapore.
As a foreign entrepreneur in Singapore, protecting your intellectual property (IP) is crucial. Singapore offers strong IP protection laws and efficient registration processes.
To register a trademark, you'll need to meet certain criteria. Make sure your mark is unique and doesn't infringe on existing trademarks.
You can register your trademark online through the Intellectual Property Office of Singapore (IPOS). The process involves these steps:
Check if your mark meets registration requirements
Prepare necessary documents
Submit the application form and pay the fee
IPOS offers helpful tools for trademark management:
IPOS Digital Hub for online registration
IPOS Go mobile app for easy access to IP services
Remember to renew your trademark registration regularly to maintain protection.
You can do this through the IPOS website or mobile app.
Protecting your IP goes beyond trademarks.
Consider registering patents for inventions or designs for product aesthetics. These steps help safeguard your business assets in Singapore's competitive market.
Setting up a company in Singapore comes with ongoing responsibilities. You need to follow certain rules and submit reports regularly to stay in good standing.
As a company owner in Singapore, you must file annual returns with the Accounting and Corporate Regulatory Authority (ACRA). This includes your company's financial statements and other important details.
You also need to hold an Annual General Meeting (AGM) once a year.
During this meeting, you'll review the company's financial position and make key decisions.
Don't forget to file your company's tax returns with the Inland Revenue Authority of Singapore (IRAS). This is usually due by November 30th each year.
Keep your company information up to date.
If there are any changes to directors, shareholders, or registered address, report them to ACRA promptly.
In Singapore, not all companies need to be audited. Your audit requirements depend on your company's size and type.
Small companies may be exempt from audits. To qualify, you must meet at least two of these criteria:
Total annual revenue of S$10 million or less
Total assets of S$10 million or less
50 or fewer employees
Large companies must undergo annual audits. This involves having a certified public accountant review your financial statements.
Even if you're exempt, consider voluntary audits.
They can help build trust with investors and partners. Audits also help you spot financial issues early.
Singapore offers many ways for foreign entrepreneurs to grow their businesses and make connections. You can join industry groups and attend events to meet other business owners.
Joining industry associations can help you expand your company in Singapore. These groups often have resources and support for new businesses.
You can find associations for your specific industry or join general business groups.
Some popular options include:
These organizations often host seminars and workshops. You can learn about local business practices and regulations.
They may also offer networking events and business matching services.
Attending networking events is a great way to meet other entrepreneurs and potential partners. Singapore has many regular business gatherings you can join.
Some popular networking events include:
These events often feature talks by industry leaders and showcase new technologies. You can also find smaller, more focused meetups for specific industries or interests.
Online platforms like Meetup.com and Eventbrite list many business events in Singapore. You can search for gatherings that match your industry or business goals.
Starting a company in Singapore as a foreigner can be tricky. You might face some hurdles along the way. Let's look at common issues and how to solve them.
Funding Struggles
Getting money to start your business can be hard. You can try these options:
Make a solid business plan
Look into crowdfunding and government grants
Seek local investors
Visa Requirements
You need the right visa to work in Singapore. Apply for an EntrePass or Employment Pass. Start early, as this process can take time.
Cultural Differences
Singapore's business culture might be new to you. Learn about local customs and etiquette.
Networking with other business owners can also help you get tips.
Hiring Local Talent
Finding skilled workers can be tough. Use job boards and recruitment agencies.
You must also follow local hiring rules.
Understanding Regulations
Singapore has strict business laws.
Consider hiring a local expert to guide you.
Language Barriers
English is widely used, but some documents may be in other languages. Use translation services when needed.
Setting up a company in Singapore as a foreigner is a straightforward process. You'll need to follow key steps to ensure success.
First, choose your business structure carefully. This decision impacts taxes, liability, and operations.
Next, appoint a local director and secure a registered address. These are crucial requirements for foreign entrepreneurs.
Don't forget to apply with ACRA, Singapore's company registrar. This step officially establishes your business.
Obtaining necessary work passes is another vital step. Research which pass suits your situation best.
Opening a corporate bank account comes next. This separates your personal and business finances.
Lastly, ensure you comply with all legal and licensing requirements. This keeps your business in good standing.
By following these steps, you'll be well on your way to starting your Singapore business. The process may seem complex, but with careful planning, you can navigate it successfully.
Remember, seeking professional help can smooth the path. Consider working with experts familiar with Singapore's business landscape.
Setting up a company in Singapore as a foreigner can be complex. Here are some helpful resources to guide you:
ACRA's official guide - Learn about registration requirements and processes from Singapore's business regulator.
Singapore Economic Development Board - Find information on investment opportunities and business landscape in Singapore.
EntrePass - Explore visa options for foreign entrepreneurs looking to start and operate a business in Singapore.
Singapore Business Federation - Access networking opportunities and business support services.
GoBusiness Singapore - Use this portal to apply for licenses and navigate government e-services.
You can also seek professional help from:
Legal firms specializing in company incorporation
Business consultancy services
Accounting firms for financial advice
These resources will provide you with valuable insights and support as you embark on your entrepreneurial journey in Singapore.
Setting up a company in Singapore as a foreigner involves specific requirements and processes. Here are answers to some common questions about registration, investment, ownership, and appointing directors for foreign entrepreneurs.
To register a company in Singapore, you need:
A local resident director
At least one shareholder
A company secretary
A registered office address in Singapore
You must also choose a unique company name and have a minimum paid-up capital of S$1.
The minimum paid-up capital to start a company in Singapore is S$1. This applies to both residents and non-residents.
However, you may need more capital for practical reasons. This includes covering setup costs and operational expenses.
Yes, foreigners can own 100% of a Singapore company. This allows you full control over your business operations and profits.
The main implication is that you'll need to appoint a local resident director. This person must be a Singapore citizen, permanent resident, or Employment Pass holder.
As an Employment Pass holder, you can start a business by:
Incorporating your company with ACRA
Appointing a company secretary
Opening a corporate bank account
You may need to apply for a new Employment Pass under your new company if your current pass is tied to another employer.
You have two options to appoint a director for your Singapore company:
Hire a local resident as your director
Use a nominee director service
A nominee director fulfills the local director requirement while you maintain control of your company. Many corporate service providers offer this service.