Complete Guide to Foreign Company Setup in Singapore | Set Up Company in Singapore
WLP Group is one of the top company incorporation firms in Singapore. To start off the new year of 2020, we have written a short guide on set up company in Singapore!
In this guide to setting up a local company in Singapore, we have listed links to useful information. This includes guides to the various types of business entities such as to register private limited company, sole proprietorship and limited liability partnership. There are also HR support services such as accounting services and payroll services in Singapore that are available.
If you are interested in our company incorporation Singapore services or would like a free Singapore company registration consultation, fill up the contact form below! At WLP Group, our consultants are experienced in setting up a company in Singapore. Furthermore, our consultants have years of expertise in helping entrepreneurs go through the application to set up company in Singapore.
Why Do Foreigners Love Singapore? (Hint: Foreign Company Setup in Singapore for Entrepreneurs)
Many foreigners love to migrate and live in Singapore for many reasons. This includes entrepreneurs, professionals, business people and those who simply love to travel and explore.
For professionals, Singapore offers better career opportunities, perks and a higher salary. Meanwhile, foreign entrepreneurs like to do business here due to Singapore’s flexible business laws. This has been proven with lesser red tapes and relaxed working legislation. Furthermore, Singapore has attractive tax rebates for foreign entrepreneurs and investors. This will be explained in greater detail in the foreign company setup in Singapore application.
The process to set up company in Singapore may be tedious. However, the tax benefits and manu advantages to select Singapore as your base for operations outweighs the hassle and regulations.
To further highlight the popularity of Singapore in the eyes of global investors, the World Bank has ranked Singapore as the second-best nation to conduct business! There is no other country in the South-East Asian region that perform as good as Singapore. This is no wonder that incorporation and foreign company setup in Singapore is so popular for non-local businesses.
If you are interested in running a business or company incorporation in Singapore, you will need to fulfil several requirements requested by the Singapore government. In general, the requirements for set up company in Singapore are not complicated.
However, the foreign company setup in Singapore process is not the same. Foreigners are forbidden to register a company in Singapore on their own. Singapore local residents can choose to register and incorporate a new company. This is provided that Singaporean entrepreneurs understand the technical jargons associated with Singapore’s company incorporation regulations. Note that making a small mistake could delay your application by several weeks.
Similar to foreigners going through the process of foreign company setup in Singapore process, local residents also need to follow regulations. In Singapore, laws and regulations regarding incorporation are decided by the Accounting & Corporate Regulatory Authority (ACRA). An alternative option for entrepreneurs in Singapore is to engage professional company incorporation in Singapore provider.
WLP Group is a well-known incorporation professional in Singapore manage all matters regarding company registration and incorporation.
Without a doubt, this is the best option for set up company in Singapore. Reputable local registered filing agents such as WLP Group are aware of the various complex requirements. This is crucial to set up a company in Singapore. Our consultants will be able to help you to incorporate a company without hassle.
Step 1: Choosing a Business Entity
Before proceeding to set up company in Singapore, the first factor to understand is the difference between each business structure. This includes understanding the characteristics of the various entity types and the benefits and impacts that can you expect from each entity.
Hence, we have listed down all the essential information you need to know about the business structure available for entrepreneurs. When going through the set up company in Singapore process, it can be confusing to understand how every entity type affects your business operations.
Contact our specialists for any specific question regarding the process of foreign company setup in Singapore at +65 6493 2970.
The common Singapore business entities for foreigners when going through the foreign company setup in Singapore process are:
- Sole proprietorship.
- Limited liability partnerships (LLP).
- Private limited (Pte Ltd) companies. It is most advisable for entrepreneurs looking to start a business to select starting a private limited company due to the many benefits. This includes limited liability.
You may click on the banners below to obtain in-depth information about each business entity. WLP Group is one of the top Singapore company registration services provider. Contact us for a free Singapore company registration consultation or more information about entity corporate types.
Selecting the Right Business Entity in the Foreign Company Setup In Singapore Application
Choosing the right of business entity can help you with several business operations. The benefits and requirements are:
- Paying Singapore corporate taxes. In Singapore, making an error in filing taxes could result in huge consequences and repercussions.
- Singapore is known for having strict laws and harsh fines.
- Admin costs associated with foreign company set up in Singapore.
- Liability exposure from your business operations.
- Registering your company as a private limited company will protect your personal assets from business debts and losses.
- Your marketing plans and campaigns.
- Partnerships with other businesses. Setting up a company as a private limited business will put your company in good light.
- Investors and businesses tend to trust private limited companies more than sole proprietorships. This is because a business has to meet several requirements in order to be set up as a private limited company.
- The nationality of the entrepreneur going through the process to set up a company in Singapore. Naturally, setting up a company as a Singaporean or Permanenet Resident (PR) will be easier than that of a foreigner. Note that foreigners also have to apply for work passes and visas to set up a Singapore company.
The table above is designed by our consultants to help entrepreneurs in Singapore to make an informed decision on which business entity to incorporate in Singapore.
The table contains vital information related to business requirements. In addition, the table mentions the benefits, drawbacks and compliance requirement. For higher efficiency in terms of cost and time investment, we recommend you to engage professional company incorporation Singapore service providers. A good incorporation service provider such as WLP Group will help and advise you to make a better decision for your new company.
Step 2: Prepare Documents and Neccessary Information for Company Registration
After completing Step 1, you will now have decided which business entity you want to establish your company in. Next it’s time to move on to Step 2. Step 2 in the process of foreign company setup in Singapore is the preparation of documents for company registration in Singapore.
Here’s what you need to prepare beforehand:
- Corporate Name. Ensure that you have a minimum of three company names prepared. Be sure to check the domain availability of the three names. This is a common mistake that many entrepreneurs often make during the new company set up process. The company name should unique and easy to remember. It is advisable to pick a company name that contains less than four syllables. In addition, the proposed name should not be similar to an existing business, not vulgar, obscene or offensive. The company name should also not prohibited by the Minister of Finance of Singapore.
- Company Director. Appoint a company director. The company director must be a local Singapore resident. If you are going through the process of foreign company setup in Singapore, one of the candidates must be either a Singaporean citizen, a Singapore Permanent Resident (PR), or an Entrepreneur Pass holder (EntrePass).
- Company Shareholders. Name a minimum of one shareholder and up to fifty shareholders. There is a limit of 50 shareholders when going through the process to set up company in Singapore regardless of the entity type. The shareholders can be either individuals and entities. Entities could be local or foreign businesses.
- Corporate Secretary (Company Secretary). To set up a company in Singapore, a company secretary has to be appointed within the first six months. Note that this is upon receiving notice of a successful company incorporation application. Those going through the process of foreign company setup in Singapore have to nominate a local Singapore resident as the corporate secretary. The corporate secretary could be a Singapore corporation, such as WLP Group, that specialises in this. Note that the same person cannot serve both the role of director and company secretary.
- Auditor. Appoint an auditor for your new company. This has to be done within the first three months from the date of company incorporation.
- Registered Office Address. Enter the Singapore local address for your new company. This is the address that will be recorded on all business communication and company records. Foreigners going through the registration process of foreign company setup in Singapore must ensure that the address does not belong to a post office box. The address has to be a physical local Singapore office that the entrepreneur has permission to use in the application.
- Share Capital. The paid up capital has to be indicated. The paid up capital refers to how much shareholders have paid for their shares. There is a minimum paid up capital requirement of SGD $1.
- Company Constitution. TheCompany Constitution is a crucial document in the set up company in Singapore application. While the Company Constitution is now the priority of entrepreneurs, it must be fully prepared before proceeding with the incorporation application. The Company Constitution is a legal document that has all the rules and regulations of the company’s governance. This legal document must list all the rights and responsibilities of all directors and the shareholders of the company. The Company Constitution must be a 100% accurate.
Summary of New Company Registration Requirements
Below is a complete list of requirements for entrepreneurs to prepare before proceeding with the application to set up a company in Singapore. To summarise, the information in all the documents has to be 100% accurate. Accidentally stating a wrong address or accidentally misspelled director name could result in a delay in the set up company application.
- 3 unique company names in the event that the first choice is taken or rejected by ACRA.
- Minimum of one director. The director has to be a local Singapore resident with proof of his or her residential address.
- A minimum of one local or foreign shareholder is required to set up a company in Singapore.
- One company secretary. The company secretary can be a corporation but details must be that of a local Singaporean resident.
- A local address in Singapore. The address has to be a physical location.
- A minimum SGD $1 of issued capital.
- A Company Constitution with detailed information of the responsibilities of all the directors and key shareholders.
- An official auditor for the new Singapore company.
Note that the new company set up process usually takes 1 business day to complete. However, this could be delayed if ACRA suspects an issue with the incorporation application. In addition, this is not applicable to foreigners going through the foreign company set up in Singapore application.
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Process for Foreigners to Set Up a New Company in Singapore
Any foreigner looking to register and set up a foreign company in Singapore has to fulfil the following requirements:
- Foreigner are not allowed to file the foreign company setup in Singapore application themselves. Singapore forbids foreign individuals or entities to register their company without help from a local specialist or firm. They need a professional secretarial company in Singapore or an accounting firm like WLP Group to submit the online application on their behalf.
- As a foreigner, you need to employ a local resident of Singapore as your nominee director.
- Foreigners may require to travel to Singapore to set up a corporate bank account. Many banks require the physical presence of directors and shareholders before processing the application to open a corporate bank account.
Similarly to local Singapore residents, foreigners must fulfil the minimum requirements as stated above.
At this stage, if you are interested in hiring us to proceed with the set up company in Singapore application, click on the link below to receive the special discount prepared for all soon-to-be entrepreneurs!
For any questions pertaining to setting up a company, submit your details below and start the your new company set up in Singapore process!