Renowned as a financial hub, Singapore is an attractive choice for entrepreneurs and multinational companies looking to establish a business abroad. Its outstanding tax regime, thriving start-up ecosystem, 100% foreign ownership policy, stable political environment, and advanced banking facilities make it relatively easy for foreigners to register a company in Singapore.
The process of registering a company in Singapore is straightforward and inexpensive but requires some financial planning. This article will serve as a guide for foreigners on how to successfully register a company in Singapore.
Cost to Register a Company in Singapore
The company registration in Singapore for foreigner is entirely online through the Bizfile+ portal, managed by the Accounting & Corporate Regulatory Authority (ACRA), the company registrar in Singapore. The ACRA fees include:
- Company name application fee: S$15
- Registration fee: S$300
- A SingPass ID is required to log into the portal. Foreigners need this ID to incorporate a company on their own and must hire a corporate secretarial firm to handle the process on their behalf.
Most corporate secretarial services in Singapore offer company incorporation packages ranging from S$500 to S$1,500, depending on the services required. Additional fees may apply for more complex services.
Can a Foreigner Set up a Company in Singapore?
If you’re wondering whether you can open a company in Singapore as a foreigner, the short answer is Yes!
Establishing a company in Singapore is a straightforward process that can be completed online. Similar to Singaporean citizens, foreigners can easily register a company in Singapore and own 100% of its shares without encountering significant hurdles. Anyone who is at least 18 years old can set up a company in Singapore, provided they have not been convicted of any legal offenses or bankruptcy.
Foreigners have two main options to register a company in Singapore:
Relocate to Singapore: Foreigners can relocate to Singapore and apply for company registration while holding an Employment Pass, EntrePass, or Work Permit.
Remain Overseas: Foreigners can remain overseas and appoint a local or resident director in Singapore to handle company operations.
Requirements to Register a Company in Singapore
Choosing the right business structure is crucial for successfully registering a company in Singapore, as it directly impacts taxation and other aspects of your business operations.
Foreign entrepreneurs can register the following business entities in Singapore:
Private Limited Company (Pte Ltd): This is a flexible and popular option, recognized as a separate legal entity and often viewed favorably by financial institutions.
Limited Liability Partnership (LLP): Offers flexibility in management while providing limited liability to partners.
Sole Proprietorship: Simplest form of business ownership with the owner personally liable for all business debts and obligations.
For a private limited company, the minimum key requirements to set up in Singapore are:
- One shareholder, who can be an individual or a corporate entity.
- One resident director, who must be either a Singapore citizen, Singapore Permanent Resident, or holder of an Employment Pass.
- One company secretary.
- Initial paid-up capital of S$1.
- A physical registered office address in Singapore.
- These requirements ensure compliance with Singapore’s regulations and facilitate a smooth company registration process.
How Long Will It Take to Register a Company in Singapore?
Once all the necessary documents are prepared and submitted, ACRA typically takes 1 to 3 days to register a company. However, if the application needs to be referred to the Minister, approval may take up to two months.
The registration timeline also depends on how promptly you, as well as your directors and shareholders, submit the required paperwork to your company secretary for verification. This efficiency in document submission can impact the overall speed of the registration process.
The Bottom Line
Foreigners can easily register a company in Singapore through a fully digital process. As a foreign entrepreneur, you need to obtain ACRA approval for your company name and submit the application to ACRA along with the necessary documents. Typically, ACRA approves such applications within one to three days.
