Singapore's business-friendly environment and strategic location have made it an attractive destination for foreign entrepreneurs looking to register their companies. As a foreigner, there are several ways to register a company in Singapore, each with its own set of eligibility criteria and requirements. In this article, we will explore the different options available for foreign entrepreneurs to set up a company.
Requirements for Foreign Entrepreneurs
Foreign entrepreneurs who wish to open a company in Singapore must meet certain eligibility criteria and fulfill specific requirements, which are:
a) At least 1 shareholder is required, which can be an individual or a corporate entity.
b) A minimum of 1 resident director, who can be a Singapore Citizen, Permanent Resident, Employment Pass holder, or Dependent Pass holder.
c) 1 resident company secretary
d) An initial paid-up share capital of at least S$1, or its equivalent in any currency, is necessary.
e) A physical office address in Singapore (PO Box addresses are not acceptable).
Types of Business Entities in Singapore
Singapore offers a diverse range of business entities, catering to different business needs and scales. As a foreign entrepreneur looking to start a company in Singapore, you can choose from various options, each tailored to suit specific business objectives. These include:
Sole Proprietorship
A sole proprietorship is the simplest form of business structure, where the business is owned and operated by a single individual. While it is easy to set up and offers full control to the proprietor, there is no legal distinction between the owner and the business, making the proprietor personally liable for any debts or losses incurred.
Partnership
A partnership involves two or more individuals or entities co-owning and managing a business. It can be either a general partnership or a limited partnership. In a general partnership, all partners share equal responsibility for the business's debts and liabilities. In a limited partnership, there are general partners with unlimited liability and limited partners whose liability is restricted to their capital contribution.
Limited Liability Partnership (LLP)
An LLP combines elements of both partnerships and private limited companies. It offers partners limited liability protection, shielding them from personal liability for the company's debts and obligations resulting from the actions of other partners. Each partner is responsible only for their own actions and negligence.
Private Limited Company (Pte Ltd)
Among the various options, the private limited company (Pte Ltd) is the most popular choice for foreign entrepreneurs. It is a separate legal entity from its shareholders, providing limited liability protection to its owners. This means that shareholders are not personally liable for the company's debts and losses beyond their capital contribution. Additionally, a private limited company offers flexibility in terms of ownership and is capable of raising capital easily through share issuance.
3 Ways for a Foreigner to Register a Company in Singapore
With Employment Pass (EP)
The EP allows foreign talent to take up employment with Singaporean companies and contribute their expertise and skills to the local job market. To qualify for an EP, applicants must meet specific eligibility criteria, including possessing relevant qualifications.
- Have a job offer in Singapore.
- Work in a managerial, executive, or specialised job.
- Have acceptable qualifications, usually a good university degree, professional qualifications, or specialised skills.
- Earn a minimum monthly salary of S$5,000.
With Entrepreneur Pass (EntrePass)
This work pass is intended for serial entrepreneurs, high-calibre innovators or experienced investors that want to operate a business in Singapore that is venture-backed or owns innovative technologies.
Requirements are:
- Have started, or intend to start, a private limited company registered with ACRA that is venture-backed or owns innovative technologies.
With ONE Pass Work Visa
The Overseas Networks and Expertise (ONE) Pass is a new work visa introduced by the Ministry of Manpower (MOM) to attract high-skilled individuals to Singapore. It allows the holder to live and work in Singapore without needing a specific job offer. ONE Pass holders can also register and run a company in Singapore.
Remain Overseas and Use Nominee Resident Director Service
Foreign entrepreneurs who prefer to remain overseas while operating a company in Singapore can do so by utilizing a nominee resident director service. This service provides a local resident director to meet the statutory requirement without the director being actively involved in the business.
Looking for Nominee Director Service? Check out Swiftly.
Registering a company in Singapore as a foreigner offers exciting opportunities in a thriving business landscape. If you're in need of Nominee Director services for your business in Singapore, look no further than Swiftly. With Swiftly, you can rest assured that your company's compliance and governance will be in safe hands. Our professional Nominee Director service allows you to meet the local director requirement while retaining full control of your business operations. Get in touch with us or sign up today to embark on your journey to business success with confidence and ease.
FAQs
Can I register a company in Singapore if I am not a Singaporean citizen or permanent resident?
Yes, foreign entrepreneurs can register a company in Singapore using various work visa options, such as the EntrePass or Employment Pass.
Are there any restrictions on the types of businesses that foreign entrepreneurs can register?
Generally, foreign entrepreneurs can register most types of businesses in Singapore. However, certain business sectors may require specific licenses or permits.
How long does the registration process usually take?
The application for foreign company registration in Singapore is typically processed within 15 minutes after the name application fee is paid. If referral to another agency is needed, it may take 14 days to 2 months.
Do I need to engage a professional service provider for company registration?
While it is not mandatory, engaging a professional service provider like Swiftly can streamline the registration process and ensure compliance with all legal requirements.
Can I hire foreign employees for my Singapore-registered company?
Yes, foreign entrepreneurs can hire foreign employees, but they must adhere to Singapore's employment and immigration policies.
