Singapore has continuously scored well in the World Bank’s Ease of Doing Business surveys, making it one of the most accessible places to start a business. Establishing a company in Singapore is very simple for international business owners. Singapore is ideally located as the entry point to Asia, boasting top-notch business-friendly legislation and facilities.
It is an excellent place for international business owners and companies looking to enter the market to start. Therefore, one of the appealing possibilities is company registration in Singapore for foreigners worldwide.
3 Ways for Foreigners to Register a Company in Singapore
Three options are available to foreigners wishing to establish a corporation in Singapore:
Getting an EntrePass
Applying for an EntrePass enables qualified international business owners to launch and operate a company in Singapore. All nationalities and citizenships are eligible for the pass. Before applying, prospective candidates must meet these two requirements:
- Have established or intend to establish an ACRA-registered private limited company. Either venture capital funding or cutting-edge technology are requirements for the business. The company must have been operating on the application date for at least six months if it is already registered. However, after learning the outcome of their application, applicants can register the firm if they still need to.
- Must be an investor, entrepreneur, or inventor who satisfies any specified requirements.
An EntrePass holder may hold shares in Singaporean enterprises entirely and be a director or employee of the business. However, if you would like assistance submitting your application on your behalf, you must work with a licensed filing agent.
Businesses that are associated with the nightlife, such as bars, nightclubs, and karaoke lounges, employment agencies, geomancy firms, businesses offering traditional Chinese medicine services, such as acupuncture, massage, and foot reflexology, and specific food and beverage establishments like hawkers, food courts, and coffee shops are among those that are not eligible for an EntrePass.
Obtaining an Employment Pass (EP)
Once your company is incorporated in Singapore, you can move there by securing an Employment Pass. You can hire a registered filing agency to handle the submission of your EP application. For this route, you can only establish a private limited business. Additionally, it would help if you worked with a registered filing agent to assist you with filing your business setup application and offering the required business support.
Engaging a Local Resident Representative
Foreign nationals living abroad can establish a company in Singapore with a nominated director or authorized representative who resides locally and manages the business. This resident may be an Employment Pass (EP) or EntrePass holder, a Singaporean citizen, or a Singapore Permanent Resident (PR). For your application to be submitted to ACRA’s BizFile+ platform, you will also require the services of a registered filing agent.
Which Companies Can Be Registered by Foreign Individuals in Singapore?
There are just two steps required to be fulfilled for company registration in Singapore by foreigners, and one of them is selecting the appropriate business structure, which can have an impact on your firm’s taxation. The following enterprises can be registered in Singapore by foreign individuals:
Private Limited Company (Pte Ltd)
The preferred company structure for registering a business in Singapore is a private limited company. There can be one to fifty owners (shareholders) in this firm. It must have a minimum of one local director who resides in Singapore regularly and should be legally distinct from its owners.
It exists eternally and is endowed with the rights of a natural person. It pays corporate tax (0%–17%) and restricts the obligation of its shareholders to the amount they have invested in its shares.
Sole Proprietorship
A sole proprietorship is a commercial enterprise rather than an incorporated company. Only when your company is very risk-free should you register this business structure. It is not a distinct legal entity from its owner. The income of a sole proprietorship is regarded as the owner’s, and the person has unlimited accountability for the company’s obligations and losses. Moreover, the owner’s personal income tax (0%–22%) is due.
Limited Liability Partnership (LLP)
A partnership may be registered by two or more people or corporations under Singapore company law, and it will have a separate legal existence from its owners. Owners’ culpability is based on whether their negligence, acts, or inactions caused LLP to suffer a loss. The partners’ LLP income is subject to personal income tax (0%–22%). The advantages of a business and a partnership are combined in a limited liability partnership. It enables people to combine their complementary abilities and make money.
Reasons for Company Registration in Singapore for Foreigners
Singapore makes a compelling case for foreigners looking to launch a business. It is the best option because of its business-friendly atmosphere, helpful local government, and numerous programs. The ease of conducting business is just one factor that makes Singapore the best location for a business establishment. The Economist Intelligence Unit (EIU) recently named Singapore the world’s finest place to do business, a title it has dutifully held for the previous fifteen years.
Singapore’s business-friendly regulatory framework and streamlined procedures make it surprisingly easy for foreigners to set up and operate a company registration. Singapore has a smooth incorporation process and a wealth of business-friendly resources and support from the government. Singapore’s tax system is quite alluring, offering competitive corporate tax rates, tax breaks, and incentives.
Since YA 2020, 75% of the first S$100,000 in income made by a company is exempt from taxes during the first three years after the company’s incorporation in Singapore. The lack of capital gains and dividend taxes also benefits Singaporean enterprises’ shareholders. Additionally, Singapore has established a vast network of double taxation avoidance agreements (DTAA), which considerably lowers global trade companies’ tax obligations.
Singapore boasts a highly competent and multicultural workforce who flourish in an atmosphere that supports cross-cultural collaboration. Companies can benefit from several initiatives and incentives as a hub for international talent to draw in and keep top personnel for business support. Singapore is known for its strong legal system, steady political climate, and steadfast adherence to the rule of law. Because of these attributes, businesses can feel confident knowing that their investments and intellectual property rights are protected in Singapore. When a foreign business is incorporated in Singapore, its shareholders are wholly owned. The Accounting and Corporate Regulatory Authority (ACRA) is where they must register their business.
Required Contributions
Remember that, should your application be accepted, you will be expected to support the company registration in Singapore for foreigners by participating in various events, including serving as a host or speaker at workshops or seminars and providing mentorship to other entrepreneurs. Another way you may help is by setting up meetings for networking or establishing deals.
