This article will provide some essential information for starting a business in Singapore as a foreigner, including legal requirements and how to incorporate your company.
What Makes Singapore An Ideal Destination For Starting A Business In Singapore As A Foreigner?
Foreign entrepreneurs and businesses are attracted to Singapore for various reasons, including:
- Ease of company formation
- Favorable tax system
- Strategic location and modern infrastructure
- Highly-qualified workforce and great living standards
- Open immigration policy
- Excellent intellectual property protection
- A conducive business environment with low taxes, political stability, and a corruption-free government
Why Foreigners Are Attracted to Starting A Business In Singapore
For those considering starting a business in Singapore as a foreigner, the country provides an ideal environment with its high standard of living, excellent healthcare and education, and top-notch infrastructure. Singapore's world-renowned education system produces a highly skilled workforce. Its diverse culture and language make it easy for foreigners to adapt to and find talent from various backgrounds.
Reasons for Foreign Companies to Choose Singapore
When starting a business in Singapore as a foreigner, its strategic location in Southeast Asia, accessibility, low taxes, political stability, and robust intellectual property protection regime make it an attractive choice. Additionally, the Singapore government supports foreign businesses, providing grants and incentives for research and development, intellectual property registration, and internationalization.
Types of Business Entities in Singapore
- Sole Proprietorship: a business structure that is owned and operated by an individual, a single entity, or a limited liability partnership.
- Partnership: a business structure that necessitates at least two partners, which can be either individuals, companies, or limited liability partnerships,
- Limited Partnership: a partnership that has a minimum of two partners, including one general partner and one limited partner.
- Limited Liability Partnership: a form of partnership that combines the flexibility of a partnership with the separate legal identity of a private limited company, providing owners with limited liability.
- Private Limited Company: a separate legal entity that conducts business independently of its owners.
Requirements for Foreigners to Establish a Business in Singapore
- Foreign directors, professionals, managers and executives can obtain an Employment Pass (EP) from the Ministry of Manpower (MOM) to relocate to Singapore and operate a business.
- Dependant's Pass (DP) holders can register their business with ACRA and apply for a Letter of Consent (LOC) from MOM to operate it.
- Registering a company in Singapore requires at least one shareholder, a local resident director, and a resident company secretary. A physical office address in Singapore and a minimum initial paid-up capital of S$1 are also necessary.
- Foreign entrepreneurs can relocate to Singapore or use a nominee resident director service to register their company.
How Premia TNC Can Help You Incorporate Your Company in Singapore
At Premia TNC, we understand that starting a business in Singapore as a foreigner comes with unique challenges. That's why our team of experts can offer you the necessary guidance and support to navigate Singapore's complex legal and regulatory landscape. We can assist you in every step of the process, from company incorporation to tax planning and compliance, ensuring that you establish a successful business in Singapore.
Contact Premia TNC today to learn more about our services and how we can help you expand your business in Singapore.​​​​​​​