Singapore has a strong standing in the international arena when it comes to global trades and economies. The city-state is an attractive and secure business and financial hub. A smorgasbord of business types thrives in Singapore for her stable politics, social law and order, consumers’ strong buying power and state-of-the-art facilities. Our information will help you to see the picture how to start a business in Singapore as foreigner:
Regulatory authority
A foreign business shall be registered via the Accounting and Corporate Regulatory Authority (ACRA) and comply with Companies Act. Foreign proprietors who are to be present in Singapore have to apply for an Employment Pass from the Ministry of Manpower (MOM). Foreigners are disallowed to run illegal businesses. EntrePass applied by foreigners to set up businesses like bars, massage parlor, traditional Chinese medicine, coffee shops, recruitment agencies, karaoke lounge, Geomancy, and the like in Singapore will be rejected. ACRA and MoM are regulatory authorities to monitor and approve your application to set up business in Singapore.
Type of business
Who asks how to start a business in Singapore as foreigner or set up a company in Singapore shall first decide on the business structures which include sole-proprietorship, partnership, limited liability partnership, limited partnership or company? Then, he shall choose a name for the business. The company name must not be offensive, profane and identical to those of other business entities already registered with ACRA. The proprietors shall then register their business entities as Private Limited Company via Bizfile with payment. A Unique Entity Number (UEN) will be obtained upon successful business entity registration with ACRA, enabling proprietors to start running their businesses.
Registration capital advisory
Required capital information will find answer how to start a business in Singapore as foreigner. Business incorporation with EntrePass application is meant for entities having a funding (of at least S$100 K) from government-accredited sources, Intellectual Property (IP) registered with an approved national IP institution, active research collaboration with an institution recognized by the Agency for Science, Technology and Research (A*STAR) or higher-learning institutes in Singapore, or being an incubate with a government-supported incubator.
EntrePass is rejected if the business structure chosen by the foreigner is sole-proprietorship or partnership unless a locally resident representative or partner is appointed. A foreigner is eligible for an EntrePass upon successful registration with ACRA and having at least S$50,000 in paid-up capital deposited in a Singapore-based company bank account.
Besides, the proprietor must hold at least 30% of the shares in the company and submit a 10-page business plan. EntrePassis subject to subsequent renewals based on renewal criteria. Business Incorporation with EntrePass also requires at least one individual or corporate shareholder, one resident director, one company secretary, and a local registered office address.
Share holder information
As for the business incorporation with Employment Pass by experienced management personnel who are in charge of the management of the business set up in Singapore, the minimum set-up requirement includes at least one shareholder, one resident director, one company secretary, minimum paid-up capital of S$1 and a local registered office address. The manager must hold a valid work visa or P1 Employment Pass. Similar procedures go for a foreign company setting up a Singapore subsidiary company.
Nominee director
Foreign individuals can opt for company registration with a resident nominee director if they do not intend to relocate to Singapore. The appointed resident director shall be responsible for the compliance of statutory requirements of the business entity. The minimum set-up requirement includes at least one shareholder, one resident director, one company secretary, minimum paid-up capital of S$1, and a local registered office address. Similar procedures go for a foreign company setting up a Singapore subsidiary company.
Setup branch office
If a foreign company intends to relocate its staff to Singapore branch office with employment pass, the minimum set-up requirement includes one corporate shareholder, two Singapore resident agents and a registered office address in Singapore. Whereas if a foreign company does not intend to relocate its staff to Singapore branch office but runs the operations from overseas, the minimum set-up requirement includes one corporate shareholder, two Singapore resident agents and a registered office address in Singapore.
Representative office setup
In cases where a foreign company wants to register only representative office (RO) with employment pass application, the minimum set-up requirement includes a sales turnover of more than USD$ 250k, at least 3 years of establishment of parent company, and five or fewer employees at the RO.
Financial organization
Foreign business owners are also responsible for banking, financial, insurance and legal affairs involved, and can therefore approach and consult the Monetary Authority of Singapore, Legal Services Regulatory Authority and International Enterprise Singapore. Proprietors shall be aware of the financial and legal requirements that their businesses entail.
Audit issue
Financial audits and statutory and regulatory audits are necessitated to fulfill the above-mentioned requirements. Services such as audits, corporate secretarial services and taxation can be provided by government-recognized secretarial service providers and audit firms or government agencies in Singapore.
The proprietors or appointed representative of a registered business entity shall adhere to or comply with the reporting and filing requirements, especially of the financial status. Change(s) to a particular piece of information shall be lodged with ACRA to keep the registration details up-to-date.
EDB
Foreigners can explore commercial and industrial parks by the Economic Development Board (EDB) for strategic locations. They may choose to build partnerships with or employ talents available in Singapore at the stage of business planning and development which play a major role as a springboard for the future success of both the company and its people.
In Singapore, head-hunters have added to human capital in companies. Therefore, business-starters can always benefit from recruitment firms’ services. A further step to beefing up human capital in a company is training. In this respect, the EDB provides training programmers that enhance and support trainable employees. Should foreign talents be hired, the proprietors shall ensure that the application procedures for Work Visa and Employment Pass have complied.
By and large, Singapore is one of the most competitive countries that offer not only the ease of doing business but also facilities that support and help sustain businesses. If you like starting or setup a business in Singapore as foreigner is requested to contact us without hesitate. Thank You.
