Is registering a company in Singapore straightforward for foreigners?” Numerous foreign business owners avidly seek trustworthy guidance on commencing business operations in Singapore as a non-local. Every nugget of helpful information aids them in swiftly and confidently navigating their decisions regarding this endeavor. Fortunately, the process of establishing a business in Singapore for foreigners is relatively uncomplicated. For those embarking on this journey for the first time, seeking counsel from a reputable registered filing agent is advisable.
How can Foreigners Register a Company in Singapore?
Similar to a Singaporean citizen, a foreign individual can register a company and possess 100% ownership without encountering any obstacles. In fact, anyone aged 18 or above is eligible to initiate a company in Singapore, provided they have no record of legal convictions or bankruptcy. Apart from Singaporeans, this privilege extends to Permanent Residents (PR), holders of Employment Passes, EntrePasses, and Dependents Passes, who can also register a company and become shareholders. Physical presence in Singapore during the company’s establishment is necessary.
Also, if a foreigner’s company lacks resident directors, they cannot operate a business in Singapore. Employing a local nominee director resolves this issue. Once engaged, the foreigner can assume directorship or appoint another executive from overseas. We offer nominee director services in Singapore for both newly established and existing companies.
Key Requirements for foreigners to set up a new business in Singapore
When locals self-register their company on the BizFile+ portal, they can designate a resident director for their company. Shareholders need to pass a resolution to appoint this director, who must be at least 18 years old and legally competent. Individuals with unresolved bankruptcy issues are ineligible for this role.
However, foreigners have different requirements:
- They must appoint a local director.
- They are required to engage a registered filing agent to register their company, as foreigners are not permitted to self-register their company in Singapore.
Can an Employment Pass Holder Register a Singapore Company?
Certainly!
Individuals holding an Employment Pass (EP) are eligible to register a company in Singapore and can fully own its shares. However, due to their employment status under a Singaporean employer who secured the EP for them, they are not permitted to serve as the local or resident director of the company they own. Instead, they must hire a local director at the time of company setup.
Registering a Singapore Company for Foreign Individuals
Setting up a Singapore company involves completing just two procedures.
Selecting the appropriate business structure is crucial for successful company registration in Singapore, as it can impact your business’s taxation.
Foreign individuals have the option to register the following types of businesses in Singapore:
- Private Limited Company
- Sole Proprietorship
- Limited Liability Partnership
Singapore Company Registration for Foreign Companies
Foreign company registration in Singapore presents a significant opportunity for SMEs worldwide. Depending on their business objectives, they can opt to establish:
- Subsidiary Company
- Branch Office
- Representative Office
Subsidiary Company
Establishing a subsidiary company is highly advantageous for foreign corporations. A subsidiary company operates as a form of limited liability company, offering the following benefits:
- The parent company can possess 100% of its shares.
- A subsidiary company exists as a distinct entity from its parent company.
- The liability of the parent company is confined to its share capital.
- The assets of the parent company are safeguarded and not utilized to settle the debts and liabilities of the subsidiary.
- Upon incorporation of a subsidiary company, the parent company is required to deploy one of its employees to Singapore to oversee its operations. This employee must obtain an Employment Pass to legally work in Singapore.
Conclusion
In conclusion, starting a business in Singapore as a foreigner offers a plethora of opportunities, facilitated by a straightforward registration process and a conducive business environment. By selecting the appropriate business structure, whether it be a subsidiary company, branch office, or representative office, foreign entrepreneurs can establish a presence tailored to their specific goals and requirements. With the support of registered filing agents and compliance with relevant regulations, foreigners can navigate the incorporation process smoothly. Furthermore, leveraging available resources and seeking expert guidance can enhance their chances of success in tapping into Singapore’s dynamic market and thriving economy. With determination, careful planning, and adherence to legal procedures, foreign individuals can embark on a rewarding entrepreneurial journey in Singapore.
