Singapore is perceived as a top business destination by many investors and entrepreneurial aspirants from across the world. The Republic has established itself as a prominent financial trading center in South East Asia in past few decades. The plenty of business opportunities available in Singapore is not only for locals but also for foreign individuals. As a result, the island nation has been witnessing a massive influx of foreign entrepreneurs and entities every year. The key factors that drive foreigners to set up a company in Singapore are the strategic location, simple jurisdiction, progressive tax regime, strong intellectual property law and so on.
Despite having a strong penchant towards Singapore, many individuals are not well accustomed to the process of Singapore company registration for foreigners. This article excerpt will outline the reasons why foreigners choose Singapore as their business destination and what are the processes involved in the company incorporation Singapore with ACRA (Accounting & Corporate Regulatory Authority).
Why Foreigners Consider Singapore for Setting up their business in Global Market
Being ranked in the 1st position for ease of doing business by World Bank for ten consecutive years, Singapore is the place that deserves to be called the “Business Hub” of Southeast Asia. The nation has attracted not only just individuals of Eastern region but also people of the western region are showing immense interest in Singapore company incorporation.
Below are the few key factors that fascinate global entrepreneurs for Singapore company incorporation:
Perched at the crossroads of Eastern and Western regions, Singapore serves as the perfect business hub to access the Southeast Asian markets.
Government Aid & Support:
Availability of government aided start-up grants and easy access to private angel investors and venture capitalists is one of key driving factors to attract foreigners.
Progressive Tax System:
Low tax rates and plenty of tax benefits makes the Singapore truly appealing. While corporate tax rate capped at 17%, headline personal tax rate is just 22%.
Strong & Protective IP Law:
Singapore ranks number one in Asia and second in the world when it comes to strong Intellectual Property Laws, according to the World Economic Forum’s Global Competitiveness Report 2012-2013.
How to Set up a Company in Singapore by Foreigners
The next big questions are “What are the procedures involved in Singapore company registration?” and “How to open a company there?” A foreign individual can easily set up a private limited company in Singapore by fulfilling few requirements of ACRA. Nonetheless, overseas entities have options to set up a subsidiary, a branch office or a representative office on the shores of the island country.
The very first thing a foreigner consider when considering starting a business in Singapore is to obtain a relevant work visa such as Entrepreneur Pass (EntrePass) or Employment Pass (EP). A work visa allows the foreigners to enter, work and live in Singapore.
No matter what type of industry you intend to operate in, you must register your company with ACRA before starting operations. The entire process of Singapore company incorporation will be done electronically via BizFile+ (an online filing system) of ACRA. One needs a SingPass ID to login into the filing system. Only a local Singaporean (Citizen or Permanent) is entitled to have SingPass ID. Foreigners can take the help of a good and trustworthy corporate firms like SBS Consulting to carry out the process on their behalf.
Following are the minimum requirements for setting up a private limited company in Singapore.
Appointment of at least one local director (of 18 years and above), who is a local citizen, a permanent resident or a holder of any of the three pass (EP and EntrePass).
The number of shareholders must range between one to fifty. 100% foreign shareholding is allowed.
A local corporate registered address must be there. The address can be of commercial or residential space. No P.O. Box address is accepted.
The minimum share capital is just SGD1. However, the amount will be S$ 50,000 for an EntrePass holder.
One must appoint a local and qualified company secretary within six months from the date of incorporation of the company.
Once you fulfilled these requirements, you are required to submit the application form along with a set of supporting documents (address proof, copy of passport, Bank documents, etc.). The process will take just 1 to 3 days as long as everything is in order. The company incorporation Singapore process involved minimal red-tape and bureaucracy, which attracts the foreigners the most. Last but not the least, it is worth to mention that Singapore harbors one of the prominent start-up ecosystems in the world.