Singapore, a well-known financial center, appeals to business owners and international corporations wishing to establish an overseas presence. Due to Singapore’s exceptional tax system, vibrant startup ecosystem, 100% foreign ownership policy, stable political climate, and cutting-edge banking facilities, Company registration Singapore for foreigner there is comparatively simple. The process of Company registration Singapore for foreigner is simple and affordable, but it does need some budgeting.
Process of Company Registration Singapore for Foreigners
The Accounting & Corporate Regulatory Authority (ACRA), Singapore’s business registrar, administers the Bizfile+ platform, which is used for the fully online company registration procedure. To access the portal, you must have a SingPass ID. Foreigners who wish to establish a firm independently require this ID. They must get a corporate secretarial company to take care of it for them.
In Singapore, forming a corporation is an easy process that may be completed online. Company registration Singapore for foreigner can be created and they easily own 100% of its shares, just like a Singaporean person would. In Singapore, an individual who is eighteen years old may establish a corporation, provided that they have not been convicted of any crimes or declared bankrupt. Foreign nationals wishing to register a company in Singapore may choose to relocate there and apply for Company registration Singapore for foreigners using an EntrePass, Employment Pass, or Work Permit, or they may choose to stay abroad and hire a local or resident director.
Requirements of Company Registration Singapore for Foreigners
For a company registration Singapore for foreigner to be successful, choosing the appropriate business structure is essential. It can affect the taxes your business pays. In Singapore, an international businessperson can register as a sole proprietor, limited liability partnership, or private limited company (Pte Ltd). Because it is regarded as a distinct legal entity and is accepted by financial institutions, a private limited company is a popular and adaptable choice.
To establish a corporation in Singapore, one shareholder—an individual or a corporate entity—is one of the essential minimum requirements. One resident director is required, who may be an Employment Pass holder and a permanent resident of Singapore. Furthermore, a single company secretary, S$1 in initial paid-up capital, and a physical registered office address are necessary in Singapore.
Required Work Passes for Foreigners
Employment Pass (EP)
With an employment pass, you can register a firm if you relocate to Singapore. You must make at least S$5,000 per month in salary to qualify for EP. Your qualifying income must be twice the minimum salary required of the youngest candidates if you are over 40. It would help if you also had credentials recognized by reputable universities. EP holders can register and own shares in a company in Singapore. Nevertheless, they cannot serve as the local or resident director of the business. They must appoint a nominee for director services to do it. Furthermore, an LLP or sole proprietorship cannot be registered.
EntrePass
This pass is intended for international businesspeople wishing to establish new private limited businesses in Singapore. Before incorporating a business with ACRA or within six months, an entrepreneur may apply for EntreePass. Applying for an EntreePass is possible through the Ministry of Manpower. After obtaining the pass, you can register a sole proprietorship, limited liability corporation, or LLP. With this permission, you can also serve as the local or resident director of the company.
ONE Pass
The opportunity to register and operate a company in Singapore is one of the many privileges of Singapore’s new work visa, the Overseas Networks and Expertise (ONE) Pass. However, to be eligible for this pass, applicants must earn a fixed salary of S$30,000 per month or its equivalent in foreign currency.
Local or Resident Director Appointment for Company Registration
Even though you have a valid Employment Pass, you still need a local director and a Letter of Consent from the Ministry of Manpower to form a firm. You can designate a local director as a foreigner. Foreigners must use a registered filing agent because they cannot register a firm independently. For your business, you can hire a local nominee director. You can apply for and obtain an EntreePass and establish a company or designate a Singaporean, permanent resident, or EntreePass holder as a local director.
It typically takes ACRA one to three days to register a corporation after all necessary paperwork is prepared and filed. If your application is forwarded to the Minister, the approval may take up to two months. The speed at which you, the directors, and the shareholders turn in the necessary documents to your company secretary for validation will also determine how long it takes to register your business.
Steps to Take After Company Registration Singapore
Following a successful, it is time to think about the following vital actions:
Corporate Bank Account Opening
One of the first things you should do after registering your business is open a corporate bank account. With a corporate account, your personal and business finances will remain segregated. It enables you to monitor every transaction and handle your company’s finances easily. You can open a corporate account online through a fintech business or traditional bank in Singapore.
Obtain Business License
In many industries, business permits are required even before operations begin. In Singapore, supplying the SSIC code in the application is mandatory for business registration. This code informs ACRA of your company’s intended operations. Certain codes limit the business names and activities you can use. As a result, before beginning business operations, apply for and obtain a permission or business license.
GST Registration
If your new business’s anticipated yearly turnover exceeds S$1 million, you must register for Goods and Services Tax (GST). After that, you will get your consumers to pay you 9% of the GST, which you must give to IRAS.
Concluding Remarks
Company registration Singapore for foreigners is a simple, totally digital process. You must obtain ACRA approval for the company name as a foreign entrepreneur and submit the application to ACRA along with the necessary paperwork. ACRA will often approve your application in one to three days.
Foreigners can easily create a corporation and possess 100% of its shares like any other Singaporean citizen. In actuality, anyone at least eighteen years old in Singapore may form a business. Assuming he has not been found guilty of any crimes or filed for bankruptcy. Permanent Residents (PR), owners of Employment Passes, EntrePasses, Dependents Passes, and Singaporeans are eligible to incorporate a company and become its shareholders. You must be physically present in Singapore when you establish your business.
