To open a company in Singapore is a strategic move that opens the door to one of the world’s most dynamic and business-friendly environments. Transparent regulations, pro-business policies, and world-class infrastructure make setting up a company here quick and easy.
This blog, outlines the key advantages and requirements to form a company in Singapore, explores common challenges along with practical solutions, and presents a straightforward course of action for successful incorporation.
What are the Benefits of Setting up a Company in Singapore?
Gateway to Global Network
Singapore’s strategic location gives access to the ASEAN region and the emerging markets of China and India. It opens a gateway to a diverse consumer base and regional economic growth, creating an environment for cross-border business expansion with relative ease.
Business-Friendly Environment
The city-state has streamlined registration processes and efficient online systems, significantly reducing the time required for incorporation. It is well-known for its ease of business environment where eligible entrepreneurs can relocate to Singapore and take advantage of various government schemes.
Smart Tax-Benefits
Singapore has a highly competitive tax system designed to foster business growth and foreign investment. It offers a low corporate tax with tax incentives for newly incorporated companies, no tax on capital gains, and access to over 90 Double Taxation Avoidance Agreements.
Future-Ready Growth Platform
Singapore is globally recognised for its technological and innovation advancements and as an ideal location for tech startups. It offers access to cutting-edge research facilities, a highly skilled workforce, and government-backed funding to boost innovation.
Total Entrepreneurial Freedom
The Companies Act of 1967 allows foreigners to have complete operational control by permitting 100% shareholding in the company in adherence with the compliance requirements.
Professional Support
Singapore offers a wide range of professional services, including legal, financial, and corporate secretarial support. Businesses can always access expert guidance, ensuring that every step of the incorporation process adheres to local regulations and international best practices.
For incorporation related guidance read full guide here: Incorporating a Singapore Company Hassle-Free
What are the Requirements to Register a Company in Singapore?
Businesses must meet the following basic requirements to incorporate in Singapore:
- At least one local Director
- At least one shareholder (corporate or individual)
- A minimum paid-up capital of S$1 (in any currency)
- A registered office in Singapore
- A qualified company secretary (within 6 months of incorporation)
What are the Challenges to Register a Company in Singapore?
Businesses should recognise the challenges early and address them proactively for a seamless incorporation process. Below are some common challenges that entrepreneurs usually encounter:
To Appoint a Local Director
The Singapore Companies Act requires every local Company to have at least one Director who is a Singapore citizen, permanent resident (PR), or Employment Pass (EP) holder. Foreign Companies can resort to any of the following solutions to meet this requirement:
Appoint yourself as a Local Director
– Appoint a registered filing agent to manage the process (mandatory).
– Register your Company with ACRA through BizFile+ (EP is granted after registration).
– Apply for an EP from the Ministry of Manpower, Singapore.
– Until you receive your EP, appoint a resident (citizen or PR) as the local Director — a friend or trusted associate can help.
– Once received, get yourself appointed as a Local Director in place of the existing Director.
Appoint a Local / Nominee Director on your behalf
– This option is best when you do not wish to relocate to Singapore.
– You can either appoint a local Director (citizen, permanent resident, or EP holder) and remotely administer and manage your business,
– Or, appoint a Nominee Director on your behalf who has the potential to handle all the duties and responsibilities of the Company.
– Many corporate service providers in Singapore offer nominee director services to fulfil regulatory requirements while allowing foreign investors to control the Company’s operations completely.
Having a Local Registered Office
A local company is statutorily required to have an actual registered office for the Company, which need not be the same as the place of operation. If you cannot find an appropriate office space, you can also use your residential address as the office address by applying under the Home Office Scheme before submitting your incorporation application. Virtual offices are also widely accepted and used in Singapore if they comply with the requirements of the Act.
Documentation and Compliance
Foreign entrepreneurs new to the Singapore regulatory system may find researching and preparing the documents required for incorporation daunting.
Hiring a corporate service provider or legal expert familiar with Singapore’s legal landscape can significantly ease this burden while ensuring compliance with local regulations and reducing the risk of delays or rejection during the incorporation process.
Navigating Local Business Culture
Understanding and adapting to the local business culture and practices can be challenging for a foreign investor. A thorough local market research and engaging with local business networks can help. Additionally, participating in seminars and networking events can provide crucial insights into local business etiquette, regulatory changes, and market trends, thereby fostering smoother business operations.
What is the Ideal Course of Action for Successful Incorporation?
With the help of a well-thought-out plan and adherence to a systematic course of action, one can successfully incorporate a company in Singapore. Here’s a step-by-step guide to help you navigate the process:
1. Preliminary Research and Planning
Familiarise yourself with Singapore’s business environment, regulatory framework, and compliance requirements. Define your business objectives, identify target markets, and assess how incorporating in Singapore aligns with your overall business strategy.
2. Appoint a Registered Filing Agent or Corporate Service Provider (CSP)
Foreign entrepreneurs must appoint a Registered Filing Agent to submit their incorporation application to ACRA. There is a vast pool of CSPs in Singapore. One can log on to the Bizfile+ portal or click here to check the registration status of a filing agent by merely entering its name or UEN no.
3. Registration of the Business Name
Select a unique business name that resonates with your brand identity and complies with the ACRA’s guidelines. Visit ACRA’s official website to check whether it is available for registration with ACRA.
Apply for the name reservation with ACRA, who will reserve it for 120 days, giving you time to complete the company registration process.
Read our ultimate guide to finding a perfect Company name in Singapore to avoid chances of rejection.
4. Prepare Documentation
Compile all the necessary documents required for incorporation, like the Memorandum, Articles, Shareholders Agreement, Directors’ identification documents and consent forms, industry-specific documents, as may be required, etc.
5. Register with ACRA
Submit your incorporation documents through ACRA’s BizFile+ portal. If all documentation is in order, you can expect confirmation of incorporation within one to two business days.
6. Post-incorporation Steps
After getting your company incorporated, you will need to take various steps to stay compliant and advance your corporatisation journey:
– Create Company Stamp and Seal required for various legal and secretarial documents and giving authorisations.
– Open a Corporate Bank Account
– Apply for business licenses, if required
– Register for GST If your annual revenue exceeds SGD 1 million
– Take care of the due dates of Annual and Tax Filing with ACRA and IRAS
– Employ Staff and Fulfill CPF Obligations
– Leverage Professional Networks for ongoing support
Conclusion
Incorporating a company in Singapore as a foreign investor offers numerous benefits—from strategic market access and a favourable tax regime to a stable legal framework. For those ready to leap, the key to success lies in local market understanding, following a systematic course of action, and leveraging professional expertise. Additionally, embracing Singapore’s opportunities can set the foundation for long-term success.
However, if the legal and complex regulatory requirements still haunt you, engage 3E Accounting Services, which specialises in corporate solution services and has presence in over 113 countries. We will also assist you in immigration, virtual offices, taxation, accounting, auditing, HR, and everything you need to set up your business in Singapore so that you can channelise your energies to the core business operations.
Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.
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Frequently Asked Questions
Yes, as per Singapore’s Companies Act, a local company must have at least one director who is a Singapore resident, citizen, or Employment pass holder.
Yes, an eligible foreigner can open a company in Singapore if granted an Entre Pass, Employment Pass, or any other work pass by the government, making him eligible to do business in Singapore.
Yes, as long as you appoint a local resident director and meet compliance requirements, you can run a company remotely.
All Singapore companies must file annual returns with ACRA, submit corporate tax filings to IRAS, hold an Annual General Meeting (AGM) and maintain proper accounting records.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
