Foreign Company Incorporation Singapore | New Company Set Up
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 setting up a new company in Singapore!
In this guide to setting up a local company in Singapore, we have listed links to useful information such as various types of business entities such as to register private limited company, sole proprietorship and limited liability partnership.
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, we have years of experience with setting up new companies in Singapore.
Why Do Foreigners Love Singapore?
Many foreigners, both professionals and entrepreneurs, love to migrate and live in Singapore for many reasons.
To 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, relaxed working legislation and attractive tax rebates for foreign entrepreneurs and investors.
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 of a company 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 to set up a new company in Singapore are not complicated.
However, foreigners are forbidden to register a company in Singapore on their own. Singapore local residents can choose to register and incorporate a new company or business, provided that they fully understand the technical jargons associated with Singapore’s company incorporation regulations.
Like foreigners, local Singaporean residents also need to meet the requirements set by the Accounting & Corporate Regulatory Authority, also known as ACRA. The second option available to local residents is to engage professional company incorporation in Singapore provider, such as WLP Group, to manage all matters regarding company registration and incorporation.
Without doubt, this is the best option to set up a new company in Singapore since reputable local registered filing agents like WLP Group are experienced and aware of what it takes to perform successful company registration and incorporation in record time.
Step 1: Choosing a Business Entity
The first thing you need to know before proceeding with company incorporation is to understand the difference between each business structure and what benefits and impact can you expect from each entity. Hence, we have listed down all the essential information you need to know the business structure available in Singapore and how each can impact you.
The common Singapore business entities are the:
- Sole Proprietorship
- Limited Liability Partnerships (or known as LLP)
- Private Limited (or known as PTE LTD)
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 consultation or more information about entity corporate types.
Choosing the right kind of business structure can help you with the following things that can have a major impact your company, which include: paying taxes, admin costs associated with business setup, liability exposure from your product/service, your marketing plans and goals, partnerships and nationality (whether you are a citizen of Singapore or not).
We have created the table below in order to help you making an informed decision on which business entity you want to incorporate in Singapore. The table contains vital information related to business requirements, benefits and drawbacks and compliance requirement. For higher efficiency in terms of cost and time investment, we recommend you to engage professional company incorporation Singapore service provider like us to make a better decision on your behalf.
Step 2: Prepare Documents/Information for Company Registration
Once you know which business entity you want to establish in Step 1, then it’s time to move on to Step 2, which is the preparation of documents for company registration in Singapore. Here’s what you need to prepare beforehand:
- Corporate Name – Make sure you have prepared a minimum of three names for your company. Make sure the company name is unique and easy to remember. Besides, the proposed name should not be similar to an existing business, not vulgar, obscene or offensive. Make sure the name is not prohibited by the Minister of Finance of Singapore.
- Company Director –Appoint a director for your company and make sure that the candidate is a local resident of Singapore. The candidate must be either a Singaporean citizen, a permanent resident of Singapore (PR holder) or Entrepreneur Pass holders (EntrePass).
- Company Shareholders – Name a minimum of one shareholder and up to fifty shareholders (which is the maximum limit for shareholders in a company). The shareholders can be either individuals and entities (can be locals or foreigners).
- Corporate Secretary (Company Secretary) – You need to appoint a company secretary within the first six months upon successful company incorporation. Make sure to nominate a local resident in Singapore as your corporate secretary. Besides, make sure that the same person cannot serve both the role of director and company secretary.
- Auditor –Appoint an auditor for your company (within three months from the date of company incorporation)
- Registered Office Address – Enter the actual local address in Singapore for your business. This is where all business communication and company records are kept. Make sure that the company address does not belong to a post office box.
- Share Capital – You need to indicate how much the shareholders have paid for their shares (The minimum share capital is SGD $1). There will be zero minimum paid-up capital required.
- Company Constitution – This is a crucial document, and you must get your company’s constitution fully prepared before proceeding with company incorporation in Singapore. Company Constitution is a legal document that has all the rules and regulations of the company’s governance. This legal document list down all the rights and responsibilities for all directors and the shareholders of the company.
Summary of New Company Registration Requirements
The above is the full list of details you need to prepare before you can proceed with company registration/company incorporation Singapore. As a summary, you just need to ensure you have the following minimum requirements ready for company registration in Singapore:
- 3 Unique Company Name(s)
- Minimum of One Director (Local Resident)
- Minimum of One Local or Foreign Shareholder
- One Company Secretary (Local Resident)
- A Local Address in Singapore (Physical or Virtual Office Address)
- Minimum SGD $1 of Issued Capital
- A Company Constitution with Detailed Information
- Appoint an Official Auditor for Your Company
Do take note that company registration and company incorporation Singapore process usually takes 1 business day to complete unless there is some delay from ACRA side.
How Foreigners Can Register a Business and Incorporate Their Company in Singapore
Any foreigner who is keen to register and perform company incorporation Singapore has to fulfil the following requirements:
- You as a foreigner or foreigners are not allowed to file company registration on their own because Singapore forbids foreign individual/entity to self-register their company. They need a professional secretarial company in Singapore or an accounting firm like WLP Group to submit the online application on their behalf.
- You as a foreigner or foreigners need to employ a local resident of Singapore as your nominee director.
- You as a foreigner or foreigners may require to travel to Singapore to set up a corporate bank account. Many banks require the physical presence of directors or shareholders before they can allow the opening of the company bank account.
Just like all local residents of Singapore, you also need to fulfill the minimum requirements as stated above.
At this stage, if you are interested in hiring us to proceed with the registration and incorporation of your company, then kindly click on the special link below to avail the special discount we have prepared for you!
If you have any questions pertaining company incorporation Singapore, please submit your details below!