Singapore is ranked among the top 20 easiest country to start a business in the world, it is an ideal location for business incorporation. Below a simplified guideline aiming to help foreigners understand the key requirements and steps for setting up a business in Singapore.
How Can foreigners incorporate a local Company in Singapore?
The incorporation process of a company in Singapore can be easily done for foreigners who fulfill the necessary requirements. Below is a simplified guideline describing the fundamental steps for setting up a business in Singapore.
1-Choose your Business Entity Type:
In Singapore, there are 5 different legal structures of Business. Each type has specific requirements, advantages and disadvantages. They are mainly:
- Sole-Proprietorship (one owner)
- Partnership (two or more owners)
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
All the details you need to know about each type of legal structure are summarized in this table made by the Accounting and Corporate Regulatory Authority in Singapore.
2-Appoint a Local Director:
In Singapore, all companies should have at least one local director. Three different options are available:
- Recruit a resident (Permanent or an EntrePass holder)
- Appoint a nominee director
- Apply for an Employment pass in case you want to manage your business by yourself.
In order to know if you qualify or not for an Employment Pass you can use the online self-assessment tool available in the Ministry of Manpower website.
3-Register your Business Online:
There are two possible ways to register your business:
- Register your local business or your foreign branch office online at Bizfile.
- Get an incorporation service from a law firm or a secretarial firm to submit an online application on your behalf.
4- Manage your Business:
Once you are a legal entity in Singapore you have to start managing every aspect of your business carefully, you can count on one of the firms specialized in offering Legal services, Financial services and Tax Advisory Services.
How much does it cost to incorporate a company in Singapore?
- 15$ for the name application charged by the Accounting and Corporate Regulatory Authority.
- 300$ for the online registration fees.
Other important Notes:
- In order to be able to start a business in Singapore you have to be above 18 years’ old.
- In case you need access to Singapore’s legislation you can visit this website.
- If you need specific information about the incorporation process, you can visit the Singapore Economic Development Board.
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