Singapore is now the best place to start a business if you want to expand your worldwide reach. In this article, we will learn how to register company in Singapore for foreigner. Because of its robust yet friendly investment and trade regulations, Singapore is recognized as one of the best countries in the world to do business. Company registration is required for the company’s owners. In Singapore, forming a company is simple and inexpensive.
Singapore is placed second in the Ease of Doing Business Report 2020, which serves as a benchmark for foreigners and locals interested in forming a company in Singapore. According to Singaporean legislation, foreign corporate entities or foreign individuals are not permitted to register as a business in Singapore. For company registration in Singapore, they must use a local expert business.
Types of Singapore Business Entities
The following is a basic rundown of the many forms of business entities in Singapore:
- Private limited company
- Limited liability company
- Subsidiary company
- Branch office
- Representative office
Private Limited Company Registration in Singapore
A private limited company in Singapore has a different legal position from its owners and directors, who have limited accountability for the business’s debts and losses. The owner of this business entity has the right to own property.
Minimum Setup Requirements:
- A single individual/corporate shareholder
- One resident director is required
- One company secretary
- Paid-up capital of one dollar
- One registered address
Limited Liability Partnership Registration in Singapore
A limited liability partnership combines the benefits of a private limited company and a partnership to provide you the maximum freedom while keeping your legal entity independent from your partners.
Minimum Setup Requirements:
- A minimum of two partners is required
- A full-time resident manager
- A registered address
Setting up Subsidiary Company in Singapore
A subsidiary company is a private limited company that is owned by an external business entity. This external corporate entity may possess 10% of the company. A subsidiary company in Singapore enjoys the same benefits as a Singapore-based private limited company.
You can either apply for a Singapore work permit and relocate to Singapore, or you can appoint a nominee director and administer your business from outside.
Minimum Setup Requirements:
- A single individual/corporate shareholder
- A resident director is required
- A company secretary
- Paid-up capital of one dollar
- A registered address
Company’s Branch Office Formation in Singapore
A branch office is a non-Singapore-based growth of a foreign corporate entity. Because it is a non-resident, it is not eligible for tax exemptions like other Singapore private limited companies. You must apply for a Singapore employment pass if your company desires to move or send staff to Singapore to conduct business.
Minimum Setup Requirements:
- A corporate shareholder
- A local agent
- A registered address.
Business Representative Office in Singapore
A representative office is a temporary structure that cannot last for more than three years. This permits foreign corporations to temporarily move to Singapore to explore and interact with local distributors as well as analyse the market. To relocate, you’ll need a Singapore employment pass.
Minimum Setup Requirements:
- Sales turnover must be greater than $250,000.
- Must have been in business for at least three years
- The proposed R.O. personnel must be not more than five employees
Documents Required for Registering a Company In Singapore
For registering your company in Singapore, we will require the following documents from your end.
- Company name
- Brief description of business activities
- Shareholders
- Particulars
- Directors’ particulars
- Registered address
- Company secretary particulars
- Memorandum of Association(MOA)
- Articles of Association (AOA).
Note:
- On-Residents (Foreigners) – Copy of passport, overseas residential address proof, and other KYC details such as a bank reference letter, business profile, etc.
- Singapore Residents – Copy of Singapore identity card.
Key Factors of Company Registration In Singapore
1. Liability/Legal Entity
One of the most important factors to consider when choosing an organizational form is the liability structure. It is beneficial for both the business owner and the firm if the two are legally different entities. This will provide for a limit on what/who is responsible for any company indebtedness.
2. Ability to Grow
A long-term goal for every business is to continue to grow, thus owners must assess which organizational structure will allow them to broaden their horizons and enter new markets or products/services.
3. Cost of Setting Up
If the business is a startup, it’s important to consider the amount of capital available to register in Singapore.
To Know more about overseas company incorporation, visit our page International updates Archives – Legal Updates.
